The Finance Act, 1980

An Act to give effect to the financial proposals of the Government and to amend certain laws.

Act No. ACT NO. XXIII OF 1980

Date: 30th June, 1980

An Act to give effect to the financial proposals of the Government and to amend certain laws. WHEREAS it is expedient to make provisions to live effect to the Financial proposals of the Government and to amend certain laws for the purposes here in after appearing; It is hereby enacted as follows:-

Section 1. Short title and commencement

(1) This Act may be called the Finance Act, 1980.

(2) Subject to the Provisional Collection of Taxes Act, 1931 (XVI of 1931), and the declaration made thereunder, this Act, shall, except as otherwise provided, come into force on the first day of July, 1980.

Section 2. Amendment of Act VI of 1898

In the Post Office Act, 1898 (VI of 1898) for the First Schedule thereto the contents of First Schedule to this Act shall be substituted.

Section 3. Amendment of Act II of 1899

In the Stamp Act, 1899 (II of 1899), for Schedule (1) thereto the Schedule set out in the Second Schedule to this Act shall be substituted.

Section 4. Amendment of Act XI of 1922

The following amendments shall be made in the Income tax Act, 1922 (XI of 1922), namely:

(1) in section 2, in clause (6C), for the semi colon at the end a comma shall be substituted and thereafter the following shall be added, namely:-

“receipts in the nature of compensation or damages for cancellation or termination of contracts and licences by the Government or any person, cancellation of indebtedness which makes any debtor taxable, goodwill money, salami or premia receivable on account of all leases or transfer of any business;”;

(2) in section 4, in sub section (3),-

(a) in clause (via), the words and comma “not being winning from lotteries,” shall be omitted;

(b) In clause (xii),-

(i) after sub-clause (f), a new sub-clause (ff) shall be inserted, namely:-

“(ff) in respect of a building the erection of which is begun and completed at any time between the first day of July, 1980 and the thirtieth day of June, 1985 (both days inclusive) and the building is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the following limits, namely:-

(i) in a case where annual value off such building does not exceed twelve thousand Taka The whole of such value;

(ii) in a case where annual value of such building exceeds twelve thousand Taka Twelve thousand Taka:

Provided that where an assessee claims exemption in respect of more than one such building the exemption under this sub clause shall be restricted to such portion of the aggregate annual value of such building as does not exceed twelve thousand Taka;

(ii) in sub clause (g), for the full stop at the end a semi-colon shall be substituted and thereafter the following new sub clause (h) shall be added, namely:

“(h) in respect of a building the erection of which is begun and completed at any time between the first day of July, 1980 and the thirtieth day of June, 1985 (both day inclusive) and which is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the condition that the plinth area of the building is not more than one thousand square feet. The exemption under this sub clause shall also apply in the case of housing companies, societies and estates where the construction comprises bungalows, flats, apartments or units (hereinafter referred to as units) each containing plinth area of not more than one thousand square feet provided the construction comprises not less than twenty five units.”;

(c) in clause (xiib), in the proviso, for the words “five thousand taka” the words “ten thousand taka” shall be substituted;

(3) in section 5A, in sub section (3), in the Explanation, in clause (b), after the words “service as”, the words “Appellate or Inspecting” shall be inserted;

(4) In section 7, in sub-section (1), in the third proviso, for the words “two thousand and four hundred taka”, “one thousand and two hundred taka” and “nine hundred taka” the words “three thousand and six hundred Taka”, “one thousand and eight hundred Taka” and “one thousand and five hundred Taka” shall respectively, be substituted;

(5) in section 9, in sub-section (1), in clause (iv) after the words “mortgage or other capital charge”, the words “for purposes of extension or reconstruction or improvement” shall be inserted;

(6) in section 9A, in sub-section (2) in clause (v), after the words “mortgage or other capital charge”, the words “for purposes of reclamation or improvement” shall be inserted;

(7) in section 10, in sub-section (4), for clause (e) the following shall be substituted, namely:-

“(e) any allowance in respect of expenditure on entertainment in excess of the amounts specified below:-

(i) on the first Taka 5 lakhs of income, profits and gains of the business, profession or vacation 4% or Taka 20,000, which ever is higher. (ii) on the next Taka 15 lakhs 2% (iii) on the next Taka 30 lakhs 1% (iv) on the balance ½ % or

(i) on the first Taka 5 lakhs of income, profits and gains of the business, profession or vacation

4% or Taka 20,000, which ever is higher.

(ii) on the next Taka 15 lakhs

(iii) on the next Taka 30 lakhs

(iv) on the balance

½ % or

(i) on the first Taka 5 lakhs of income, profits and gains of the business, profession or vacation

4% or Taka 20,000, which ever is higher.

(ii) on the next Taka 15 lakhs

(iii) on the next Taka 30 lakhs

(iv) on the balance

½ % or

(ee) any allowance in respect of such expenditure on foreign travels for holidaying and recreation of employees and their dependents as may be prescribed; or”;

(8) after section 12AA, the following section 12AAA shall be inserted, namely:-

“12AAA, Salami or premia receipt.- Where any lump-sum amount is received or received by an assessee during any pervious year represents income on account of salami or premia receipts, such income shall, if he so, claims, be allocated for the purpose of assessment proportionately to the years covered by the entire lease period, but such allocation shall in no case exceed five years.”;

(9) in section 12B,-

(a) in sub-section (2), after the second proviso, the following new proviso shall be inserted, namely:-

“Provided further that if in the opinion of the Deputy Commissioner of Taxes the fair market value of a capital asset transferred by an assessee as on the date of the transfer exceeds the declared value therefore by more than 25% of such declared value, the Government may offer to buy the said asset in such manner as the National Board of Revenue may prescribe:”;

(b) in sub‑section (5),

(i) the words “by the assessee or a parent of his mainly”, the words “his own or the parents’ own” and the words “his own” shall be omitted;

(ii) in clause (b), in sub‑clause (ii), in the proviso, the words “assessee’s own” shall be omitted;

“(6) Notwithstanding anything contained in sub‑section (1) where a capital gain arises from the sale, exchange or transfer of a capital asset being government securities and stocks and shares of public companies which fulfill the conditions laid down in sub‑section (3) of section 15C, then no tax shall be charged under this section if the sale proceeds are reinvested within a period of two years in the acquisition of similar securities, stocks and shares.”;

(10) section 13 shall be numbered as sub‑section (1) of that section, and after sub‑section (1) as so renumbered the following new sub‑section (2) shall be added namely:-

“(2) Notwithstanding anything contained in the second proviso to sub-section (1) every person engaged in the manufacturing and wholesale business shall maintain such books of accounts and other documents (including inventories where necessary) and shall maintain such record of payments of commercial nature and other commercial transactions as the National Board of Revenue may prescribe in this behalf.”;

(11) in section 14, in sub‑section (3), in clause (b), in sub-clause (ii), the word “or” at the end shall be omittedand thereafter the following explanation shall be added, namely:-

“Explanation.‑In thissub‑clause, “cottage industry” means an enterprise, not being owned by a joint stock company, which fulfils the following conditions, namely:-

(a) it is basically an enterprise in which the owner is the investor, a full‑time worker and the actual entrepreneur;

(b) the capital invested in it does not exceed Taka ten thousand at any time during the previous year;

(c) the number of workers, including the owner and the members of his family, that is, his parents, wife or wives, sons and daughters, dependent on him and employed in the factory, whether working full‑time or part‑time, whether for or without any wages, remunerations or compensation in cash or otherwise, shall not on any one twenty‑four hour day during the previous year exceed six; and

(d) the owner of the factory or any member of his family as specified in (c) above does not own any other industrial or commercial enterprise either in his own name or in the name of any other person; or”,,

(a) in sub‑section (2A), for the figure “1980” the figure “1985” shall be substituted;

(b) in sub‑section (2B), in clause (a), the proviso shall be omitted;

(13) in section 15, in sub‑section (1), after the word “husband” occurring for the first time, the words “or a minor child” shall be inserted;

(14) in section 15A, for the words “four thousand taka” the words “five thousand Taka” shall be substituted and the first proviso shall be omitted;

(15) in section 15E,-

(a) for the words “eight hundred Taka” wherever occurring the words “one thousand Taka” shall be substituted;

(b) for the words “two thousand four hundred taka” wherever occurring the words “two thousand Taka” shall be substituted;

(16) in section 15H, for the words “two thousand Taka” the words “three thousand Taka” shall be substituted; and the proviso shall be omitted;

(17) in section 16, in sub‑section (3), in clause (a), in sub‑clause (i), for the semi‑colon at the end a colon shall be substituted and thereafter the following proviso shall be added,namely:-

“Provided that nothing in this sub‑clause shall apply to the membership of the spouse in a firm in which he or she contributes personal, technical or personal professional knowledge and experience;”;

(a) in sub-section (1)-

(i) in clause (a), for the words “greater plus” a colon shall be substituted;

(ii) clause (b) shall be omitted;
(b) in sub-section (5)-
(i) in clause (ii) for the words “twelve months” the words “two years” shall be substituted;
(ii) in clause (b),
(A) for the words “twelve months” the words “two years” shall be substituted;
(B) for sub-clause (i) the following shall be substituted, namely:-
“(ii) in the case of other assesses-
	(1) Where the capital gansarise as a result of disposal by the assessee of his capital assets after two years but before five years from the date of their acquisition.	Income-tax payable on the capital gains at the rate applicable to his total income including the said capital gains, or, income-tax at the rate of 35% on the amount of the capital gains, whichever is the lower.
	(2) Where the capital gains arise as a result of disposal by the assessee of his capital assets after five years from the date of their acquisition	Income-tax payable on the capital gains at the rate applicable to his total income including the said capital gains, or, income-tax at the rate of 30% on the amount of the capital gains, whichever is the lower.”;
(19) in section 20A, for the words “five hundred taka” the words “three thousand Taka” shall be substituted;
(20) after section 21A, the following new section 21AA shall be inserted, namely:-
“21AA. Licence.- (1) Every person carrying on any business, profession or vocation in such areas as the National Board of Revenue may, by notification in the official Gazette, specify and who pays rent for or owns the premises where he carries on the business profession, or vocation, shall take out an annual licence on payment of a fee of Taka one hundred initially and Taka fifty for renewal, in such form and manner as the National Board of Revenue may prescribe.

(2) If any person fails to obtain a licence, as required by sub‑section (1), the Deputy Commissioner of Taxes may, after giving such person a reasonable opportunity of being heard, direct that such person shall pay by way of penalty a sum not exceeding Taka five hundred.”;

(21) in section 22,

(a) in sub‑section (1), in the proviso, for the full stop at the end a colon shall be substituted andthereafter the following new proviso shall be added, namely:-

“Provided that every individual whose total income during the previous year exceeded Taka twenty thousand shall furnish along with the return or certificate, as the case may be a statement in the prescribed form and verified in the prescribed manner giving particulars of the total assets and liabilities of himself, his wife or wives and his minor children.”

(b) in sub‑section (4A), after the word “assessee”, the words, brackets and the figure “other than an assessee referred to in the second proviso to sub‑section (1)” shall be inserted;

(22) in section 23, after sub‑section (3), the following new sub‑section (3A) shall be inserted,namely:-

“(3A) In the case of an assessee carrying on any business, profession or vocation who has filed a return voluntarily under sub‑section (1) of section 22 or in response to a notice under sub‑section (2) of section 22 or section 34 or in a case where no such return has been filed, the Deputy Commissioner of Taxes shall presume his total income during the previous year to be Taka fifteen thousand and shall send a notice accordingly to the assessee to establish with accounts, documents and evidence that the presumptive income is not correct. If the assessee fails to do so, the Deputy Commissioner of Taxes shall make an assessment on the aforesaid presumptive income and the income, so determined once shall remain unchanged for the next two years”;

(a) for sub‑section (1) the following shall be substituted, namely:-

“(1) If any person has without reasonable cause failed to-

(a) furnish the return or certificate or statement which he is required to furnish under sub‑section (9) of section 18, section 19A, section 20, section 20A, section 21, section 22, section 34, orsection 38 or has, without reasonable cause, failed to do so within the time or extended time, if any, allowed under the relevant section, the Deputy Commissioner of Taxes shall, after giving the person a reasonable opportunity of being heard, direct him to pay by way of penalty a sum not exceeding one thousand Taka and in the case of a continuing default, a further sum not exceeding fifty Taka for every day during which the default continues;

(b) comply with a notice under sub‑section (4) or section 22 or subsection (2) or sub‑section (3) of section 23, the Deputy Commissioner of Taxes may direct that such person shall pay by way of penalty, in addition to any tax payable by him, a sum not exceeding an amount equal to the amount of income‑tax which would have been avoided if the income as returned by such person had been accepted as the correct income.”;

(c) in sub‑section (6), after the word “section”, the commas, words, brackets, letter and figure “, except in the cases referred to in clause (a) of sub‑section (1),” shall be inserted;

(24) in section 30, in sub‑section (1), in the first proviso, for the words and figure “tax payable under section 22A has been paid” the words “undisputed portion of the tax has been paid” shall be substituted;

(25) In section 31,-

(a) in sub‑section (4),-

(i) In clause (a), sub‑clause (ii) shall be omitted;

(ii) in clause (b), the words and comma “or set aside such order and direct the Deputy Commissioner of Taxes to make such further inquiry as he thinks fit or as the Appellate Joint Commissioner may direct and the Deputy Commissioner of Taxes shall thereupon proceed to make such inquiry and shall thereafter make a fresh order registering the firm or refusing to register it or canceling its registration, as he may think fit” shall be omitted;

(ii) In clause (c), the words and comma “or set aside such order and direct the Deputy Commissioner of Taxes to make fresh order after making such inquiry as the Deputy Commissioner of Taxes thinks fit or as the Appellate Joint Commissioner of Taxes may direct, and the Deputy Commissioner of Taxes shall there upon proceed to make such fresh order and determine the amount of penalty on the basis of such order” shall be omitted;

(b) after sub‑section (6), the following new sub‑section (7) shall be added, namely:-

“(7) Notwithstanding anything contained in this Act, the Appellate Joint Commissioner shall not make an order-

(a) in respect of an appeal pending before him on the 30th June, 1980‑after the expiry of a period of two years from thatdate, and

(b) in respect of an appeal filed before him on or after the 1st day of July, 1980‑after the expiry of one year from the end of the year in which the appeal was filed:

Provided that if the Appellate Joint Commissioner has failed to make an order within the period specified in this section, the appeal shall be deemed to have been allowed by the Appellate Joint Commissioner.”;

(a) in sub‑section (1), in the first proviso, for the words “half the amount representing the difference between the tax as determined on the basis of the order of the Appellate Joint Commissioner and the tax payable under

section 22A” the words “the undisputed portion of the tax as determined on the basis of the order of the Appellate Joint Commissioner” shall be substituted;

(b) in sub‑section (4), clause (e) shall be omitted;

(i) in clause (a), for the words and figure “tax payable under section 22A has been paid” the words “undisputed portion of the tax has been paid” shall be substituted;

(ii) in clause (b), for the words, figure and comma “half the amount representing the difference between the tax as determined on the basis of the order of the Appellate Joint Commissioner and the tax payable under section 22A,” the words “the undisputed portion of the tax as determined on the basis of the order of the Appellate Joint Commissioner” shall be substituted;

(b) after sub‑section (4), the following new sub‑section (5) shall be added namely:-

“(5) Notwithstanding anything contained in this Act, the Commissioner shall not make an order-

(a) in respect of an application for revision pending before him on the 30th June, 1980‑after the expiry of a period of two years from that date; and

(b) in respect of an application for revision field before him on or after the 1st day of July, 1980‑after the expiry of one year from the end of the year in which the application for revision was filed:

Provided that if the Commissioner has failed to make an order within the period specified in this section, the application for revision shall be deemed to have been allowed by the Commissioner.”;

(a) in sub‑section (1A), in clause (c), in the proviso, for the full stop at the end a colon shall be substitutedand thereafter the following new proviso shall be added,namely:-

“Provided further that as respects any assessment year beginning on the first day of July, 1981, the provision of this clause shall have effect as if for the word “four” the word “two” were substituted.”;

(b) in sub‑section (2), in the proviso,‑

(i) in clause (i), after sub‑clause (f)the following new sub‑clause (g) shall be added,namely:-

“(g) in relation to the income, profits or gains which are first assessable in any year beginning with the year 1981‑82, the words “two years” were substituted.”;

(ii) in clause (iv), in sub‑clause (b), for the word “four” the word “two” shall be substituted;

(29) in section 38, in clause (3), for the words “four hundred taka” the words “three thousand Taka” shall be substituted;

(30) after section 45, the following new section 45A shall be inserted,namely:-

“45A. Simple interest on delayed payment.- If the amount specified as payable in a notice of demand under section 29 or an order under section 31 or section 33 is not paid within the time specified under section 45, the assessee shall be liable to pay simple interest at fifteen per cent. per annum. from the date following the date or extended date specified for payment to the date of actual payment.”;

(31) in section 48, after sub‑section (4), the following new sub-section (5) shall be added, namely:-

“(5) Where a refund due to an assessee is not paid within two months of the date of the relevant assessment order or claim of refund, interest at the rate of twelve per cent. per annum shall be payable to the assessee on the amount of refund from the month following the aforesaid two months to the date of issue of the refund.”;

(32) in section 54, in sub‑section (3), in clause (cc), after thewords “by the”, the words “National Board of Revenue or any officer authorised by it in this behalf and the” shall be inserted;

(33) CHAPTER IX shall be omitted;

(34) in section 61, after sub‑section (1), the following explanation shall be inserted, namely:

“Explanation.‑Inthis sub‑section, the word “relative” shall mean the parent, spouse, son, daughter, brother and sister of the assessee.”.

Section 5. Amendment of Act I of 1944

The following amendments shall be made in the Excises and Salt Act, 1944 (I of 1944), namely:-

(1) for section 11 the following shall be substituted, namely:-

“11. Recovery of sums due to Government.- (1) When under this Act or the rules made thereunder a duty is payable to the Government by any person or a penalty is adjudged against any person or a notice or demand is served upon any person calling for the payment of any amount unpaid which may be payable by way of duty, penalty or under any bond or other instrument executed under the rules and such duty, penalty or other sum is not paid within the time it was required to be paid, an Excise Officer empowered by the Board may at any time-

(a) deduct or require any other Excise Officer to deduct the amount so payable from any money owing to such person or due which may be in the hands or at the disposal or under the control of such Officer or of the Government;

(b) require, by a notice in writing, any person owing any money to the person from whom such duty or penalty or any other sum is recoverable or due, to pay to such Officer the amount specified is the notice, or the whole of such money if it is less than the amount so recoverable or due, within seven days of the receipt of the notice or within such longer time as may be allowed by such Officer;

(c) recover such amount by attachment and sale of excisable goods or any plant, machinery and equipment used for the manufacture of such goods or any other goods in the factory or bonded warehouse or in any premises where any excisable services are provided or rendered;

(d) stop removal of any excisable goods from such factory, bonded warehouse or premises till such amount is paid or recovered in full; or

(e) require any officer of customs to recover such amount by detaining and selling any goods belonging to such person which are under the control of the customs authorities.

(2) If the amount is not recovered from such person in the manner provided in sub section (1), the Excise Officer may prepare a certificate signed by him specifying the amount due from the person liable to pay the same and send it to the Collector of the district in which such person resides or owns any property or conducts his business and the said Collector shall, on receiving such certificate, proceed to recover the amount specified in the certificate as a public demand or as if it were an arrear of land revenue.”;

(2) in section 12A, in sub section (2), after the words “any goods”, the words “or services” shall be inserted;

(3) in CHAPTER III, for the heading the following shall be substituted, namely:-

“APPOINTMENT OF EXCISE OFFICERS AND THEIR POWERS AND DUTIES”;

(4) for section 13 the following shall be substituted, namely:-

“13. Appointment of Excise Officers.- For the purposes of the Act and the rules made thereunder, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be-

(a) a Collector of Excise;

(b) a Collector of Excise (Appeal);

(d) a Joint Collector of Excise;

(e) a Deputy Collector of Excise;

(f) an Assistant Collector of Excise;

(g) a Superintendent of Excise;

(h) an Excise Officer with any other designation.

13A. Powers and duties of Excise Officers.- An Excise Officer appointed under section 13 shall exercise such powers and discharge such duties as are conferred or imposed on him by or under this Act; and he shall also be competent to exercise all powers and discharge all duties conferred or imposed upon any officer subordinate to him:

Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by general or special order, impose such limitations or conditions in the exercise of such powers and discharge of such duties as it thinks fit.

13B. Delegation of powers.- The Board may, by notification in the official Gazette, and subject to such limitations or conditions, if any, as may be specified therein, empower by name or designation-

(a) any Additional Collector of Excise or any Joint Collector of Excise to exercise any of the powers of a Collector of Excise under this Act or the rules;

(b) any Deputy Collector of Excise to exercise any of the powers of an Additional Collector of Excise or a Joint Collector of Excise under this Act or the rules;

(c) any Assistant Collector of Excise to exercise any of the powers of a Deputy Collector of Excise or a Joint Collector of Excise under this Act or the rules;

(d) any other Excise Officer to exercise any of the powers of an Assistant Collector of Excise under this Act or the rules.

13C. Entrustment of functions of the Excise Officers to certain other officers.- The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any Excise Officer under this Act or the rules to any officer of the Government.

13D. Power to arrest.- (1) Any Excise Officer duly empowered by the Board in this behalf may arrest any person whom he has reason to believe to be liable to punishment under this Act.

(2) Any person accused or reasonably suspected of committing an offence under this Act or any rules made thereunder, who on demand of any officer duly empowered by the Board in this behalf refuses to give his name and residence, or who gives a name or residence, which such officer has reason to believe to be false, may be arrested by such officer in order that his name and residence may be ascertained.”;

(5) in section 15, for the words “Police and Customs” the words and commas “Police, Customs, Commerce, Industry and Food” shall be substituted;

(6) in section 33, for clause (b) the following shall be substituted, namely:-

(b) subject to such limitations and conditions as the Board may, by notification in the official Gazette, determine from time to time, by an Additional Collector of Excise, a Joint Collector of Excise, a Deputy Collector of Excise, an Assistant Collector of Excise or a Superintendent of Excise.”;

(7) in section 37, in sub section (2), after clause (ix), the following new clause (ixa) shall be inserted, namely:-

“(ixa) provide for taking account of goods manufactured and of materials and components, either imported or locally procured, used in the manufacture of excisable goods;”;

(8) the First, Schedule shall be amended in the manner set out in the Fourth Schedule to this Act.

Section 6. Amendment of Act LXI of 1950

In the Protective Duties Act, 1950 LXI of 1950),-

(1) Throughout the Act, unless otherwise specified-

(a) for the words “Central Government” the word “Government” shall be substituted;

(b) for the word “Pakistan” the word “Bangladesh” shall be substituted;

(c) for the words, comma and figure “Tariff Act, 1934” the words, comma and figure “Customs Act, 1969” shall be substituted;

(2) in section 2, in sub section (1), clause (b) shall be omitted;

(3) in section 3, sub section (3) shall be omitted.

Section 7. Amendment of Act III of 1951 ( III of 1951)

In The Sales Tax Act, 1951 (III of 1951), in section 12, in sub section (4), for the word “may” the words and commas “shall, after giving the person an opportunity of being heard,” shall be substituted.

Section 8. Amendment of E.P. Act X of 1957

In the Finance Act, 1957(E.P. Act X of 1957), for section 2 the following shall be substituted, namely:-

2. Levy and collection of tax on advertisement.- (1) There shall be levied and collected a tax on advertisement by cinema slides films and through radio and television and daily newspapers at the rates specified below:-

		Rates
(i) on advertisement by cinema slides and films and through radio and television		at the rate of fifteen per centum of the amount charged on such advertisement.
(ii) on advertisement through daily newspapers excluding tender and employment notices		at the rate of ten per centum of the amount charged on such advertisement.
(2) The tax shall be collected and paid to the Government:-
(a) in respect of advertisement by cinema slides and films, by the owner or management of the cinema (b) in respect of advertisement through radio and television, by the authority or management concerned; and (c) in respect of advertisement through daily newspapers, by the authority or management concerned. (3) The National Board of Revenue may make rules regulating the procedure for collection and payment of the tax and any other matter incidental to its levy.”.

Section 9. Amendment of E.P. Act X1 of 1957

In the Urban Immovable Property Tax Act, 1957 (XI of 1957),-

(1) for sections 4 and 5 the following, shall be substituted-

“4. Annual value of holding. The Annual value of a holding shall mean, in municipal areas, gross annual rental at which the holding may reasonably be expected to let, and in areas notified under sub section (2) of section 1, the annual value of the holding as may be determined in the prescribed manner.

Explanation. In determining the gross annual rental at which a holding may be expected to let, regard may be had to the rents of holdings in the vicinity, of like size and amenities.

5. Revision or alteration of annual value of holding.- When the annual value of a holding in respect of areas, other than municipal areas, is revised or altered in the prescribed manner, the annual value of that holding shall be deemed to have been revised or altered under this Act accordingly, and the Urban Immovable Property Tax on such holding shall be imposed on the basis of the revised or altered annual value thereon.”

(2) in section 7, sub section (2) shall be omitted;

(3) for the Schedule the following shall be substituted, namely:-

THE SCHEDULE (Vide section 3)
	Rate of tax
1. In all cases of holdings with annual value not exceeding Taka six thousand	Nil
2. Other cases
(a) not being self-occupied holdings.	5% of the annual value.
(b) self-occupied holdings	3% of the annual value

Section 10. Amendment of E.P. Ord. LXXXII of 1958

In the Finance (Third) Ordinance, 1958(E.P. Ord. LXXXII of 1958), section 3 shall be omitted.

Section 11. Amendment of Act IV of 1969

The following amendments shall be made in the Customs Act, 1969 (IV of 1969), namely:-

(1) throughout the Act, unless otherwise provided-

(a) for the word “Pakistan” the word “Bangladesh” shall be substituted;-

(b) for the words “Central Government”, “Provincial Government” or “Central or Provincial Government” the word “Government” shall be substituted;

(d) for the words “Pakistan Penal Code” the words “Penal Code” shall be substituted; and

(e) for the words “High Court” the words “High Court Division” shall be substituted;

(2) in section 2, for clause (e) the following shall be substituted, namely:-

“(e) “Board” means the National Board of Revenue constituted under the National Board of Revenue Order, 1972(P.O. No. 76 of 1972);”;

(3) for section 3 the following shall be substituted, namely:-

“3. Appointment of officers of Customs.- For the purposes of the Act, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be-

(a) a Collector of Customs;

(b) a Collector of Customs (Appeal);

(d) a Joint Collector of Customs;

(e) a Deputy Collector of Customs;

(f) an Assistant Collector of Customs; or

(g) an Officer of Customs with any other designation”.

(4) for section 5 the following shall be substituted, namely:-

“5. Delegation of Powers.- The Board may, by notification in the official Gazette, and subject to such limitations or conditions, if any, as may be specified therein, empower by name or designation-

(a) any Additional Collector of Customs to exercise any of the powers of a Collector of Customs;

(b) any Joint Collector of Customs to exercise any of the powers of an Additional Collector of Customs or a Collector of Customs;

(c) any Deputy Collector of Customs to exercise any of the powers of a Joint Collector of Customs or an Additional Collector of Customs;

(d) any Assistant Collector of Customs to exercise any of the power of a Deputy Collector of Customs;

(e) any other officer of Customs to exercise any of the powers of an Assistant Collector of Customs.”;

(5) in section 7, the word “Central” shall be omitted;

(6) for section 18 the following shall be substituted, namely:-

“18. Goods dutiable.- (1) Except as hereinafter provided, customs duties shall be levied at such rates as are prescribed in the First Schedule and the Second Schedule or under any other law for the time being in force on

(a) goods imported into, or exported from, Bangladesh;

(b) goods brought from any foreign country to any customs-station, and without payment of duty there, transhipped or transported for, or thence carried to, and imported at, any other customs station; and

(2) The Government may, by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods specified in the First Schedule at a rate not exceeding fifty per cent of the rate, if any, specified therein read with any notification issued under sub section (1) of section 2 or sub section (1) of section 3 of the Protective Duties Act, 1950 (LXI of 1950), or at a rate not exceeding hundred per cent of the value of such goods, as determined under section 25 and may, by a like notification, levy a regulatory duty on all or any of the goods exported from Bangladesh,-

(i) in the case of goods enumerated in the Second Schedule at a rate not exceeding thirty per cent of the rate specified in the Second Schedule or of the amount which would represent the value of such goods as determined under section 25; and

(ii) in the case of goods not enumerated in the Second Schedule, at a rate not exceeding thirty per cent of the amount which represents the value of such goods as determined under section 25.

(3) The regulatory duty levied under sub section (2) shall be in addition to any duty imposed under sub section (1) or under any other law for the time being in force.

(4) Any notification issued under sub section (2) shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.”;

(7) in section 22, in the proviso, in clause (a), the words “Central Government or any excise duty levied by the Provincial" shall be omitted;

(8) in section 28, for the words, comma and figures “the Tariff Act, 1934 (XXXII of 1934)” the words “this Act” shall be substituted;

(9) for section 82 the following shall be substituted, namely:-

“82. Procedure in case of goods not declared or warehoused or transhipped after unloading within a specified period.- If any goods are not entered and declared for home consumption or warehoused or transhipped within forty five days of the date of unloading thereof at a customs-port or a land customs station, or within thirty days of the date of unloading thereof at a customs airport or within such extended period as the appropriate officer may allow, such goods may, after due notice given to the owner, if his address could be ascertained, or published in the newspaper, if his address could not be ascertained, be sold under the orders of the appropriate officer:

Provided that-

(a) animals and perishable and hazardous goods may, with the permission of the appropriate officer, be sold at any time;

(b) arms, ammunition or military stores may be sold or otherwise disposed of at such time and place and in such manner as the Board may, with the approval of the Government, direct:

Provided further that nothing in this section shall authorise removal for home consumption of any dutiable goods without payment of customs duties thereon.”;

(10) In section 98,-

(a) for the words “three years” wherever occurring the words “two years” shall be substituted,

(b) in the proviso, in clause (ii), for the words “one year and by the Board by such further period as it may deem fit” the words “six months” shall be substituted;

(11) in section 172, in sub section (1), for clause (a) the following shall be substituted, namely:-

“(a) any newspaper or book as defined in the Printing Presses and Publications (Declaration and Registration) Act, 1973 (XXIII of 1973), or”;

(12) In section 177, for sub section (2) the following shall be substituted namely:-

“(2) In any area to which this section for the time being applies, no, person shall have in his possession or control any such goods or class of goods in excess of such quantity or value as may from time to time be notified by the Government in the official Gazette, except under a permit granted by the Government in respect of the particular goods or class of goods, or by an officer authorised by the Government.”;

(13) for section 179 the following shall be substituted, namely:-

“179. Power of adjudication.- In cases involving confiscation of goods or imposition of penalty under this Act, the jurisdiction and powers of the officers of customs shall be as shown in the Table below:-

	TABLE
Type of cases	Designation of officers	Jurisdiction and powers
I. Adjudication of cases involving confiscation of goods or imposition of penalty or both		Value of goods exceeding Taka 2,50,000.00
Additional Collector of Customs	Value of goods not exceeding Taka 2,50,000.00
Joint Collector of Customs	Value of goods not exceeding Taka 2,00,000.00
	Deputy Collector of Customs	Value of goods not exceeding Taka 50,000.00
	Assistant Collector of Customs	Value of goods not exceeding Taka 20,000.00
	Superintendent of Customs	Value of goods not exceeding Taka 5,000.00
II. Adjudication of cases relating to manifest clearance in custom house and customs-station involving only imposition of penalty under item 24 of the Table under sub-section (1) of section 156.		Value of goods without limit:

Provided that the Board may, by notification in the official gazette, reduce or extend the jurisdiction and powers of any particular officer or class of officers”;

(14) in section 184, for the words “five hundred rupees” the words “Taka five thousand” shall be substituted;

(15) in section 185,-

(a) for the words “two years” the words “three years” shall be substituted;and

(b) for the words “one thousand rupees” the words “Taka five thousand” shall be substituted;

(16) in section 193, for the words “Deputy Collector” the words “Joint Collector” shall be substituted;

(17) in section 219,-

(a) in sub‑sections, (2) and (3), for the words “First Schedule” the words “Third Schedule” shall be substituted;

(b) in sub‑section (4), for the words “National Assembly” the word “Parliament” shall be substituted;

(18) in section 220, for the words “Second Schedule” the words “Fourth Schedule” shall be substituted;

(19) The First Schedule and the Second Schedule shall be numbered as the Third Schedule and the Fourth Schedule, respectively, and before the Third Schedule as so renumbered, the First Schedule and the Second Schedule as set out in the Fifth Schedule to the Finance Act, 1980, shall be the First Schedule and the Second Schedule to that Act;

(20) in the Fourth Schedule renumbered as aforesaid, against serial No. 4, in column I,-

(a) in column 3, for the words and figures “Sections 5 and 6” the words, “The whole” shall be substituted;and

(b) in column 4, the entries shall be omitted.

Section 12. [Omitted]

[Foreign Travel Tax.- Omitted by section 7 of ভ্রমন কর আইন, ২০০৩ (২০০৩ সনের ৫ নং আইন)।]

Section 13. Amendment of Ord. XLII of 1976

In the Land Development Tax Ordinance, 1976 (Ord. XLII of 1976), in section 3, in sub section (1),-

(a) in clause (b),

(a) in sub clause (i), for the words “fifteen taka” the words “twenty two Taka and fifty Poisha”, and for the words “three taka” words “six Taka” shall be substituted;

(b) after sub clause (i) amended as aforesaid, the following new sub clause shall be inserted, namely:-

“(ia) in any area within the municipalities at the district headquarters.

Seven Taka and fifty poisha per decimal, if the land is used for commercial or industrial purposes, three Taka per decimal, if the land is used for residential or other purposes;”;

Section 14. Income tax

(1) Subject to the provisions of sub sections (2), (3), and (5), in making any assessment for the year beginning on the first day of July, 1980, income tax shall be charged at the rates as specified in Third Schedule.

(2) In making any assessment for the year beginning on the first day of July, 1980,-

(a) where the total income of an assessee, not being a company, includes any income chargeable under the head “Salaries” or any income chargeable under the head “Interest on Securities”, the income tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of income tax payable according to the rates applicable under the operation of the Finance Act, 1979 (V of 1979), on his total income the same proportion as the amount of such inclusion bears to his total income; and

(b) where the total income of a company includes any profits and gains from life insurance business, the income tax payable by the company shall be reduced by an amount equal to 12.5 per cent of that part of its total income which consists of such inclusion.

(3) In making any assessment for the year beginning on the first day of July, 1980, where the assessee is a co operative society, the tax shall be payable at the rate specified in paragraph A, or clause (c) of sub paragraph (i) of paragraph B, of the Third Schedule, whichever treatment is more beneficial to the assessee:

Provided that in calculating for the purposes of this sub section, the amount of income tax at the rates specified in paragraph A of the third Schedule, no deduction in respect of any allowance or sums referred to in the proviso to the said paragraph shall be made.

(4) (a) In making any assessment for the year beginning on the first day of July, 1980, where the total income of an assessee not being a company to which the proviso to sub paragraph (i) of paragraph B of the Third Schedule does not apply, includes any profits and gains derived from the export of goods out of Bangladesh, income tax payable by him in respect of such profits and gains shall, subject to the provisions of clauses (b) and (c), be reduced by an amount computed in the manner specified hereunder:

	Amount
(i) Where the goods exported abroad had not been manufactured by the assessee who exported them:	30 per cent. of the income-tax attributable to export sales.
(a) and where the export sales during the relevant year exceed the export sales of the preceding year:	Plus an additional 1 per cent. for every increase of 10 per cent. in export sales over those of the preceding year, subject to an overall maximum of 40 per cent.
(b) and where the export sales during the relevant year do not exceed the export sales of the preceding year:	Minus 1 per cent. for every decrease of 10 per cent. in export sales from those of the preceding year, subject to an overall minimum of 20 per cent.
(ii) Where the goods exported had been manufactured by the assessee who had exported them:

(a) where the export sales do not exceed 10 per cent. of the total sales:

Nil

(b) where the export sales exceed 10 per cent. but do not exceed 20 per cent. of the total sales.	30 per cent. of the income-tax attributable to export sales.
(c) where the export sales exceed 20 per cent. but do not exceed 30 per cent. of the total sales:	40 per cent. of the income-tax attributable to export sales.
(d) where the export sales exceed 30 per cent. of the total sales;	50 per cent. of the income-tax attributable to export sales.

(b) Nothing contained in clause (a) shall apply in respect of the following goods or class of goods, namely:-

(i) tea,

(ii) raw jute,

(iii) jute manufacture,

(iv) raw hides and skin and wet‑blue leather,

(v) such other goods as may be notified by the National Board of Revenue from time to time.

(c) The National Board of Revenue may make rules providing for the computation of profits and the tax attributable to export sales and for such other matters as may be necessary to give effect to the provisions of this sub‑section,

(5) In cases to which section 17 of the Income tax Act, 1922 (XI of 1922), applies, the tax chargeable shall be determined as provided in that section but with reference to the rates imposed by sub-section (1), and in accordance, where applicable, with the provisions of sub-section (2).

(6) For the purpose of making deduction of tax under section 18 of the Income‑tax Act, 1922 (XI of 1922), the rates specified in the

Third Schedule shall apply as respects the year beginning on the first day of July, 1980, and ending on the thirtieth day of June, 1981.

(7) For the purposes of this section and of the rates of tax imposed thereby, the expression “total income” means total income as determined for the purposes of income‑tax in accordance with the provisions of the Income‑tax Act, 1922 (XI of 1922).