THE FINANCE ACT, 1980

(ACT NO. XXIII OF 1980).
  [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:-
   
 
 
 
  Short title and commencement  
1. (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.
 
 
 
  Amendment of Act VI of 1898  
2. 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.
 
 
 
  Amendment of Act II of 1899  
3. 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.
 
 
 
  Amendment of Act XI of 1922  
4. 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:-
 
 
 
  Amendment of Act I of 1944  
5. 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);



(c) an Additional Collector of Excise;



(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.
 
 
 
  Amendment of Act LXI of 1950  
6. 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.
 
 
 
  Amendment of Act III of 1951 ( III of 1951)  
7. 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.
 
 
 
  Amendment of EP Act X of 1957  
8. 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:-
 
 
 
  Amendment of EP Act X1 of 1957  
9. 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:-
 
 
 
  Amendment of EP Ord LXXXII of 1958  
10. In the Finance (Third) Ordinance, 1958 (E.P. Ord. LXXXII of 1958), section 3 shall be omitted.
 
 
 
  Amendment of Act IV of 1969  
11. 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;



(c) for the word “rupees” the word “Taka” 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);



(c) an Additional Collector of Customs;



(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



(c) goods brought in bond from one customs station to another.



(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:-
 
 
 
  [Omitted]  
12. [Foreign Travel Tax.- Omitted by section 7 of ভ্রমন কর আইন, ২০০৩ (২০০৩ সনের ৫ নং আইন)।]
 
 
 
  Amendment of Ord XLII of 1976  
13. 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:-
 
 
 
  Income tax  
14. (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).

 

 
 
 
 

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Ministry of Law, Justice and Parliamentary Affairs