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VAT slab set at Tk 24 lakh, luxury cars to get costlier PDF Print E-mail
Tuesday, 10 June 2008

The new budget proposes:

• The VAT threshold rises from existing Tk 2,000,000 to Tk 2,400,000.

• At present, tax is deducted at source for house rent exceeding Tk15,000 per month. The limit has been proposed to rise to Tk 20,000. Thanks to the new limit, deduction at source will not be applicable for house rent of up to Tk 20,000.

• The provision of imposing income tax at a discounted rate of 15 percent will continue on textiles and jute sectors from July 1, 2008 to June 30, 2011.

• Luxury vehicles will be costlier. The finance adviser has proposed to readjust the supplementary duty of 60, 100, 250 and 350 percent on vehicles having higher displacement capacity.

• The adviser has proposed to reduce the supplementary duty on import of ordinary non-luxury microbuses, within the displacement capacity from 1500 to 1800 CC, used for transportation of industrial raw material and passengers, from 60 percent to 20 percent.

• To prevent imports of new vehicles in the guise of re-conditioned vehicles, the adviser has proposed to amend the conditions of eligibility for reconditioned vehicles. The conditions are: time gap between registration and deregistration has to be 365 days and the vehicles must run at least 1000 km before shipment.

• The adviser also proposed to reduce the dealer's commission from 30 percent to 20 percent alongside the readjustment of year-wise depreciation rates as 5, 10, 20 and 30 percent respectively.

• Also, the adviser proposed that taxicabs imported under a special concessionary rate and having completed an eight-year period as taxicab, be allowed to be converted into a normal car/vehicle and get that registered accordingly on payment of 20 percent of the duties and taxes exempted at the time of importation.
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