The Finance Ordinance, 1983

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

Ordinance NO. XXVII OF 1983

30th June, 1983

An Ordinance to give effect to the financial proposals of the Government and to amend certain laws. WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Government and to amend certain laws for the purpose hereinafter appearing; NOW, THEREFORE, in pursuance of the Proclamation of the 24th March, 1982, and in exercise of all powers enabling him in that behalf, the Chief Martial Law Administrator is pleased to make and promulgate the following Ordinance:-

Section 1. Short title and commencement

(1) This Ordinance may be called the Finance Ordinance, 1983.

(2) Except as otherwise provided in this Ordinance, this section and sections 7 and 9 shall come into force at once, section 4 shall come into force on the first day of July, 1984, and other sections shall come into force on the first day of July, 1983.

Section 2. Amendment of Act I of 1878

The following amendments shall be made in the Opium Act, 1878 (I of 1878), namely:-

(1) throughout the Act, for the words “Deputy Commissioner of the District” and “Deputy Commissioner” the words “Deputy Controller” shall be substituted;

(2) in section 3, after the definition of “Magistrate”, the following new definition shall be inserted, namely:-

“Deputy Controller” means “the Deputy Controller of Narcotics and Liquor of the Civil Division;”.

Section 3. Amendment of Ben. Act V of 1909

The following amendments shall be made in the Excise Act, 1909 (Ben. Act V of 1909), namely:-

(1) throughout the Act unless otherwise specified-

(a) for the words “Deputy Commissioner” the words “Deputy Controller” shall be substituted;

(b) the words “Commissioner of a Division” shall be omitted;

(2) in section 2,-

(a) in clause (1), after the word “malt” the words “and from coconut water” shall be inserted;

(b) for clause (5), the following shall be substituted, namely:

“(5) “Deputy Controller” means the Deputy Controller of Narcotics and Liquor of a Civil Division;”; (3) in section 8, in sub-section (1), the words and commas “and shall, in such matters as the Government may direct, be subject also to the control of the Commissioner of the Division” shall be omitted;

(4) in section 34,-

(a) for sub-section (2), the following shall be substituted, namely:-

“(2) The Deputy Controller shall then forthwith submit the said list, as so revised, and the said objections and opinions, and his own opinion to the Controller.”;

(b) sub-section (3) shall be omitted;

(5) in section 35, the proviso shall be omitted;

(6) in section 65, in sub-section (1), the words and comma “Deputy Collector, or” shall be omitted.

Section 4. Amendments of Act XI of 1922

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

(1) in section 4, sub-section (3) shall be omitted;

(2) in section 10, in sub-section (2), after clause (xi), the following clause (xi a) shall be inserted, namely:-

“(xi a) in respect of provision for bad and doubtful debt, made by a bank, for overdue agricultural or rural loan, a sum equal to one and a half per cent of such overdue loan or the amount of actual provision for such bad or doubtful debt in the books of the assessee, whichever is the less:

Provided that if any amount out of the amount so allowed is ultimately recovered, the same shall be deemed to be a profit of the year in which it is recovered;”;

(3) in section 12B, in sub-section (7), for the words “a new industrial undertaking” occurring twice, the words “an industrial undertaking” shall be substituted;

(4) in section 14, in sub-section (3), in clause (b), in sub-clause (ii), in the Explanation, in clause (b), for the word “it” the words and comma “plant, machinery and equipments” shall be substituted;

(5) in section 15, in sub-section (3), for the words and commas “thirty per cent of the total income of the assessee, or thirty-five thousand taka, whichever is the less”, the words “one-third of the total income of the assessee” shall be substituted;

(6) in section 15AA,-

(a) in sub-section (1),-

(i) for the brackets and words “(including Development Loans)” the brackets and words “(including Development Loans or Bonds)” shall be substituted; and

(ii) after the word “behalf ” at the end, a comma and words “, or as is contributed by an individual in any Deposit Pension Scheme sponsored by the Government” shall be inserted;

(b) in sub-section (3), for the brackets and words “(including Development Loans)” the brackets and words “(including Development Loans or Bonds)” shall be substituted;

(7) in section 15C,-

(a) in sub-section (1), after the words “Subject to the provisions of this section”, the words and figures “and sub-section (3) of section 15” shall be inserted;

(b) sub-sections (2) and (2A) shall be omitted; (c) in sub-section (3), in clause (b), after the figure “1913”, the comma and words “, and listed in a stock Exchange” shall be inserted;

(8) in section 15D, in sub-section (2), for the words “twenty per cent” the words “thirty per cent” shall be substituted;

(9) in section 15F, after the words and comma “income, profits and gains”, the commas and words “, not exceeding three thousand taka;” shall be inserted;

(10) in section 16, in sub-section (1), in clause (a), after the word, figure and letters “section 15DD” the comma, word, figure and letters “, section 15DDD” shall be inserted and shall be deemed to have been so inserted on and from the first day of July, 1982;

(11) in section 18, in sub-section (3BB), for the full-stop at the end a colon shall be substituted and thereafter the following proviso shall be added with effect from the first day of July, 1983, namely:

“Provided that any person making any collection in full or in part (including collection by way of an advance) from any person on account of such purpose as may be prescribed shall also collect, on account of the tax payable by him, an amount calculated at such rate or rates and in such manner as may be prescribed, and such collections shall also be deemed to be advance payment of tax made by the assessee and shall be given credit for in his assessment.”.

Section 5. Amendment of the Ben. Act X of 1932

The following amendments shall be made in the Opium Smoking Act, 1932 (Ben. Act X of 1932), namely:-

(1) throughout the Act, for the words “Deputy Commissioner” the words “Deputy Controller” shall be substituted;

(2) in section 2, for clause (5), the following shall be substituted, namely:

“(5) 'Deputy Controller' means 'the Deputy Controller of Narcotics and Liquor of the Civil Division.'”.

Section 6. Amendment of Ben. Act X of 1935

The following amendments shall be made in the Electricity Duty Act, 1935 (Ben. Act X of 1935), namely:- (1) for section 3, the following shall be substituted, namely:-

“3. There shall be charged, levied and paid to the Government on the units of energy consumed, a duty (hereinafter referred to as “electricity duty”) at the rate specified in the Schedule:

Provided that electricity duty shall not be leviable on the units of energy consumed in any-

(i) place of public worship, public burial or burning ground or other place for the disposal of dead;

(ii) premises declared by the Government to be used exclusively for the purposes of public charity;

(iii) vessel, whether sea-going or inland;

(iv) premises in the occupation of foreign diplomatic missions for the purposes of office and residence.”;

(2) section 4 shall be omitted;

(3) in section 5, in sub-section (1), the words “for the purpose of lights and fans” shall be omitted;

(4) in section 9, for the words “fifty taka” the words “one hundred taka” shall be substituted;

(5) in section 11, in sub-section (3), for the words “fifty taka” the words “one hundred taka” shall be substituted;

(6) for the First Schedule and the Second Schedule, the following shall be substituted, namely:-

| “THE SCHEDULE | | --- | | | | (See section 3) | | | | Rate of Duty | | | | (1) Five poisha for each unit of energy consumed. | | | | (2) In respect of all other premises where consumption of energy is un-metered, energy consumed shall be calculated on the basis of- |

| Total connected load of Installation in K.W. | ´ | Daily working hours. | ´ | No. of days. | | Units”. | | --- | --- | --- | --- | --- | --- | --- |

Section 7. Amendment of Act I of 1944

In the Excises and Salt Act, 1944 (I of 1944), for the First Schedule the Schedule set out in the First Schedule to this Ordinance shall be substituted.

Section 8. Repeal of E.P. Act XI of 1957

(1) The Urban Immovable Property Tax Act, 1957 (E.P. Act XI of 1957), is hereby repealed.

(2) Notwithstanding its repeal under sub-section (1), the Urban Immovable Property Tax Act, 1957 (E.P. Act XI of 1957), and the rules, orders or instructions made or issued thereunder shall continue to apply to the levy and collection of tax payable thereunder before the repeal of this Act and to all proceedings connected therewith as if the said Act had not been repealed.

Section 9. Amendment of Act IV of 1969

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

(1) throughout the First Schedule, unless otherwise specified, in column (3),-

(a) for the figure “40%” wherever occurring the figure “50%” shall be substituted;

(b) for the figure “75%” wherever occurring the figure “100%” shall be substituted;

(2) in the First Schedule,-

(a) against Tariff Heading No. 09.02 in column (1), in column (3), for the words, figure and letters “Taka 2.75 per kg.” the figure “150%” shall be substituted;

(b) against Tariff Heading No. 09.03 in column (1), in column (3), for the words, figure and letters “Taka 1.50 per kg.” the figure “50%” shall be substituted;

(c) against Tariff Heading No. 13.03 in column (1) and the entries relating thereto in sub-head A in column (2), in column (3), for the words, figure and letters “Taka 64.00 per kg.” the figure “20%” shall be substituted;

(d) against Tariff Heading No. 17.01 in column (1) and the entries relating thereto in sub-heads A and B in column (2), in column (3), for the words, figure and letters “Taka 4.00 per kg.” the figure “100%” shall be substituted;

(e) against Tariff Heading No. 21.06 in column (1), in column (3), for the figure “100” the figure “150%” shall be substituted;

(f) against Tariff Heading No. 22.10 in column (1), in column (3), for the figure “175%” the figure “200%” shall be substituted;

(g) against Tariff Heading No. 24.01 in column (1) and the entries relating thereto in sub-heads A, B, C, D and E in column (2), in column (3), for the letters, figure and word “Tk. 25.00 per kg.” the figure “20%” shall be substituted;

(h) against Tariff Heading No. 24.02 in column (1) and the entries relating thereto in item 1 of sub-head C in column (2), in column (3), for the letters, figure and word “Tk. 100.00 per kg.” the figure “20%” shall be substituted;

(i) against Tariff Heading No. 25.01 in column (1) and the entries relating thereto in item 1 of sub-head A in column (2), in column (3), for the words and figure “Taka 150.00 per metric ton” the figure “10%” shall be substituted; (j) against Tariff Heading Nos. 32.05, 32.06 and 32.07 in column (1), in column (3), for the figure “50%” the figure “100%” shall be substituted;

(k) against Tariff Heading No. 32.09 in column (1) and the entries relating thereto in sub-heads A and C in column (2), in column (3), for the figure “75%” the figure “150%” shall be substituted;

(l) against Tariff Heading Nos. 50.01, 50.02 and 50.03 in column (1), in column (3), for the figure “40%” the figure “150%” shall be substituted;

(m) against Tariff Heading Nos. 73.22, 73.23 and 73.24 in column (1), in column (3), for the figure “50%” the figure “100%” shall be substituted;

(n) against Tariff Heading No. 82.11 in column (1), in column (3), for the figure “100%” the figure “150%” shall be substituted;

(o) against Tariff Heading No. 85.13 in column (1) and the entries relating thereto in sub-heads A and B in column (2), in column (3), for the figure “50%” the figure “100%” shall be substituted;

(p) against Tariff Heading No. 89.04 in column (1), in column (3), for the figure “30%” the figure “50%” shall be substituted;

(q) against Tariff Heading No. 93.02 in column (1), in column (2), for sub-head A, the following shall be substituted, namely:

“A. Arms forming part of the regular uniform and imported against clearance from Army Headquarters”.

Section 10. Amendment of Ord. XVII of 1982

The following amendments shall be made in the Business Turnover Tax Ordinance, 1982 (XVII of 1982), namely:-

(1) in section 6,-

(a) for sub-section (2), the following shall be substituted, namely:

“(2) The payment of turnover tax shall be accompanied by a return in such form and manner as may be prescribed.”;

(b) in sub-section (3), after the word “extend” at the end, the words “taka five thousand” shall be inserted;

(2) in section 7,-

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

“(1) (a) If the trader opts for self-assessment, the return shall contain particulars of calculation of tax along with the declaration by the trader to the effect that the tax paid represents correct turnover.

(b) In the case of traders who have paid tax and submitted the self-assessment return and the return so furnished is complete, the Collector shall, by an order, make an assessment on the basis thereof.

(c) If the trader does not opt for self-assessment under clause (a), he shall be required to file a return in the form prescribed under section 6.

(d) In case of a trader who has paid the tax and furnished the return as required under this Ordinance, the Collector shall-

(i) if he is satisfied that the return is correct and complete, by an order make an assessment on the basis thereof and determine the tax payable; and

(ii) if he is not so satisfied, after making or causing to be made such enquiry and such examination of books of accounts and other documents (which may be called for, if necessary), make an assessment and determine the tax payable; and if the tax so determined is greater or less than the tax paid, the difference shall be added to or adjusted with the tax payable by the trader concerned in respect of the next quarter.”;

(b) in sub-section (2), in the governing clause, for the words “trader who have not paid the tax or have” the words “a trader who has not paid the tax or has” shall be substituted;

(3) in section 14, in sub-section (1),-

(a) after the word “knowingly” the words “furnishes incorrect return or” shall be inserted;

(b) after the words “Taka five thousand” the words and comma “or twice the amount of tax payable, whichever is higher” shall be inserted.

Section 11. Income-tax

(1) Subject to the provisions of sub-sections (2), (3), (4) and (5), in making any assessment for the year beginning on the first day of July, 1983, income-tax shall be charged at the rates as specified in the Second Schedule.

(2) In making any assessment for the year beginning on the first day of July, 1983,-

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 Ordinance, 1982 (XVI of 1982), 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, 1983, 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 second schedule, whichever treatment is more beneficial to the assessee:

Provided that in calculating for the purpose of this sub-section, the amount of income-tax at the rates specified in paragraph A of the second 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, 1983 where the total income of an assessee other than a company not registered in Bangladesh, 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 but do not exceed 40 per cent of the total sales: | 50 per cent of the income-tax attributable to export sales. | | | | | | | | | | | | | | | | | | | | (e) where the export sales exceed 40 per cent of the total sales: | 60 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 manufactures; (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 Second Schedule shall apply as respects the year beginning on the first day of July, 1983, and ending on the thirtieth day of June, 1984. | (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 manufactures; | | (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 Second Schedule shall apply as respects the year beginning on the first day of July, 1983, and ending on the thirtieth day of June, 1984. | | | (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 manufactures; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (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 Second Schedule shall apply as respects the year beginning on the first day of July, 1983, and ending on the thirtieth day of June, 1984. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |