DHAKA: The titular Tax Ombudsman eventually goes, sitting virtually idle for five years, as the Cabinet Monday scrapped the law that introduced the constitutional watchdog body.       

In its weekly meeting at the secretariat, with Prime Minister Sheikh Hasina in the chair, the Cabinet decided to repeal the Tax Ombudsman Act 2005.

Prime Minister’s press secretary Abul Kalam Azad briefed journalists about the Cabinet decision abolishing the institution.

He said, “The Cabinet decided to repeal the tax-ombudsman law as it is conflicting with the value-added tax law and the tariff law of the country.”

Out of 44 officials employed in the tax ombudsman’s office, 22 will be sent back to their respective offices as they had got the job on deputation.

However, the rest 22 will lose their job with the abolition of the Tax Ombudsman, Azad said, informing the press about the sad fate of the fresh recruits for the office.

The cabinet also decided on one-percentage-point cutbacks on the income tax at source on export earnings of the apparel exporters.

Now government will cut 0.4 percent instead of the present 0.5 percent as income tax on the export earnings.

“It has been decided on the basis of BGMEA plea,” the press secretary said about the tax rebate for the country’s highest-export-earning industry.       

BDST: 1357 HRS SEP 13, 2010