Both the Dhaka city corporations have demanded that they get a portion of revenue earnings of the National Board of Revenue in the upcoming national budget so that they can carry out development activities and provide better services to city dwellers.
Dhaka South City Corporation and Dhaka North City Corporation in a recent letter to finance minister Abul Maal Abdul Muhith demanded the share from the revenue collection from goods exported from the city and imported for consumption, use and or sales in city in line with the city corporation act.
Both the corporations have also placed the demand to the National Board of Revenue.
North city mayor Annisul Huq and south city mayor Mohammad Sayeed Khokn in early March met with the finance minister pressing for their demand.
The city corporations claimed that as per the forth schedule of the Local Government (city corporation) Act, 2009, they could impose tax on import of goods for consumption, use and sale in city areas and on export of goods from the city as well as sub-tax on tax imposed by the government.
So, the government should allocate a satisfying portion of revenue collection from the sectors to the corporations for carrying out more development activities and providing better services, they argued.
Sayeed Khonkon on Wednesday told New Age that he and Annisul Huq met with the finance minister and placed their demand.
‘The finance minister assured us that he would consider the demand,’ he said.
Asked about the amount they seek, the mayor said the amount was not important here.
Sayeed informed that city corporations itself could not impose the tax and sub-tax as the rules required for this were yet to be framed.
In the letter, DSCC said that there was no legal bar to making the allocation as it was already getting two per cent of the tax on transfer of immovable assets as per the schedule.
The DSCC was facing difficulty in delivering the expected services to city dwellers due to fund crisis as its source of income shrank after split of the erstwhile Dhaka City Corporation.
The two city mayors at a meeting with the NBR chairman, Md Nojibur Rahman, in last July placed the same demand.
Later, Muhith, on a summary of the revenue board sent to him seeking instructions on the proposal of the two city corporations, termed it too complex to implement under the existing tax system, officials said.
Muhith is also of the opinion that local government ministry may take a high-level initiative to examine the ways to increase income of the city corporations and place a working paper to the high-ups of the government.
Income tax wing of the NBR also gave their negative opinion on introduction of sub-tax or cess on income tax of city dwellers citing that there was no legal provision in the tax law to impose such tax.
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