Finance and Planning Minister M Saifur Rahman will place the national budget of fiscal 2005-06 in Jatiya Sangsad on Thursday.

The size of the next national budget is likely to be around Tk 64,000 crore, some Tk 6,500 crore up from the outlay of the current one, officials at the Finance Ministry told The New Nation yesterday.

The National Economic Council approved Tk 24,500 crore annual development programme (ADP) for the next financial year on May 25 last.

Of the ADP, Tk 12,650 crore will come from the domestic resources, while the rest from foreign sources.

Besides, the Finance Ministry has planned to raise the ceiling of tax-exempt income to Tk 110,000,

Sources at the National Board of Revenue (NBR) said the government has planned to raise the tax-exempt income of individual category by enhancing the ceiling from Tk 100,000 to Tk 110,000.
Earlier, the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) and Metropolitan Chamber of Commerce and Industries (MCCI) proposed the government to raise the income tax ceiling from Tk. 100,000 to Tk 120,000.

"But, the government has agreed to raise the ceiling at to Tk 110,000 from the coming fiscal," said the NBR source.

According to the present income-tax structure, 10 per cent tax is paid for the income ranging from Tk 100,001 to Tk 200,000, which is 15 per cent for up to Tk 250,000, 20 per cent for up to Tk 350,000 and 25 percent for the above amount.

Taking the pay rise and soaring inflation rate into consideration, the government decided to raise the ceiling of income tax for the individual category, NBR source admitted.

Besides, re-ceiling of the tax-exempt income, taxable income for the highest rate may also be changed, sources hinted.

In a bid to bolster the tax administration, the much-talked-about tax ombudsman bill will soon be passed in Parliament to give it effect from July 1, the NBR source also said.

As part of the process, tax ombudsman bill will be placed before the cabinet Monday for approval.

Following the approval by the cabinet, Finance Minister M Saifur Rahman will place the bill in the upcoming budget session.
Insiders said the Finance Minister is in favour of activating the tax ombudsman from July 1.

To expand the tax net, NBR will hunt down potential businessmen and fix tax rate for them by their trade license.

Revenue collection grew 13 per cent during the July-April period of the current fiscal as compared to the same period of previous fiscal, but stood wide of the mark set for this year.

The NBR has achieved only 71 per cent of its annual target of revenue collection as compared to about 73 per cent in the fiscal 2003-04.
The projected ratio for the outgoing fiscal year is 11.2 per cent of the GDP while the PRSP projected a more restricted tax-GDP ratio at 10.7 per cent.

According to published figures, the tax-GDP ratio increased from 8.5 per cent in FY1991-95 to 10.15 per cent in FY 2001-04.

Saifur will launch massive reform programme in the NBR as Bangladesh is being criticised worldwide for being one of the lowest in the number of taxpayers in the world.

Meanwhile, the Jatiya Sangsad Secretariat has finalised its preparations for holding the budget session. The duration and activities of the session would be finalised at a meeting of the Business Advisory Committee today.

The JS Secretariat received 1,415 questions till yesterday, of which 61 for the Prime Minister and the rest 1,354 for the ministers. The Secretariat has so far received 19 notices under the Rule 71.