From Jatiya Sangsad Bhavan: Without giving any hints to withdraw source tax on savings certificate and mentioning anything about Tax Identification Number (TIN) for electricity connection, Money Bill 2019 has been passed in the Jatiya Sangsad (JS). However in money bill for comforts in capital market some amendments were made. In the history of Sangsad the money bill was placed in the JS by the Prime Minister in absence of the sick Finance Minister following the rules of the parliamentary system.
On Saturday night (June 29) in the third session of 11th parliament Prime Minister (PM) Sheikh Hasina placed the money bill 2019. The bill was proposed to be publicized for seeking public opinion by some opposition members.
The members who made the proposal included JP MP Fakhrul Imam, Pir Fazlur Rahman, Kazi Firoz Rashid, Rowshan ara Mannan, Mokabbir Khan of Gonoforum, Rumin Farhana of BNP took part in the discussion on their own amendment proposals. Besides, treasury bench members ASM Firoz, Vice-principal Abdus Shahid, Shahiduzzaman Sarkar and Israfil Alam also gave proposals.
Earlier on last June the proposed budget of 2019-20 was placed in the JS. The members taking part on budget discussion seriously criticized the enhancement proposal of the source tax on savings certificate from 5 to 10 percent. Even former Minister Matia Chowdhury told that, ‘The poor and helpless people of the villages are owners of savings certificates, why you have touched it? It is the scheme of Prime Minister. You must amend this proposal.’
Nasrul Hamid, State Minister for Power, Energy and Mineral Resources speaking on introduction of TIN said that it should be reconsidered. He proposed to make it compulsory for the users of more than 500 units. No such people oriented proposal was accepted. However there is scope to amend by issuing SRO.
After accepting some amendments when the JS leader Prime Minister placed the money bill 2019 for voice vote it was approved by voice vote. At the time the treasury bench members supported the bill by thumping tables.
Prime Minister said that in the proposed budget (money bill) some proposals at the demand of the businesses and the investors in the capital market mainly common people some amendments were accepted. Of these any company will have to pay equal amount of cash dividend which the company paid as stock dividend. If the cash dividend become higher than it shall have to pay tax at the rate of 10 percent for the excess amount. In the proposed budget it was proposed 15 percent.
Besides, any company can transfer the 70 percent of the retain earnings of the neat profit to any sector. The rest 30 percent stock, dividend shall have to pay cash profit. If the company fails to do it will have to pay tax at the rate of 10 percent for transferring of retain earnings and reserve every year.
The tax free ceiling of the profit of small investors be made Taka 50 thousand from 25 thousand.
At local level a number of Value Added Tax (VAT) rate is being introduced. However, the businesses were demanding reduced rate of VAT instead of goods tax. Provisions would be there to pay 15 percent VAT.
To protect the local industry instead of 5 percent VAT on weaving industry it has been approved Taka 4 for each kilogram. For the protection of local industries in the proposed budget a number of proposals were made for reducing- enhancing duty. There was emphasis to protect the production of papers and gas so that it doest not get affected. In the local printing industry some incentives were given and to check misuse of Bond arrangements only the papers which are not produced in the country their duty will be rational. In the proposed budget the duty on import of some goods will be re-fixed.
The proposals of TIN in electricity connection and the proposal of source tax at the rate of 10 percent remained in tact in the money bill which went through as usual.
On last June 13 the budget of Taka 5 lakh 23 thousand 190 crore was placed in the JS by the Finance Minister. During this time 270 members took part in the budget discussion. Lastly the money bill was passed which will get effect from July 1. On Sunday (June 30) the budget will be passed.