Muhith imposes 2.5 percent surcharge on tobacco producers

Finance Minister AMA Muhith has proposed that a surcharge of 2.5 percent be imposed on businesses producing cigarette, bidi, zarda, gul and other tobacco products.

The government and society incur additional medicare cost due to the consumption of tobacco products like cigarettes and bidi, he said in his budget speech on Thursday.

The structure of surcharge on the disclosed net wealth of individual taxpayers has not changed from the budget presented in last fiscal year.

Muhith presented the structure with an aim to curb the “increasing inequalities resulting from economic growth”.

According to the proposed budget, the surcharge rate for net wealth of Tk 22.5 million is zero like the previous year.

But the rate for net wealth of more than Tk 22.5 million but less than Tk 50 million is 10 percent.

For the slab of more than Tk 50 million but less than Tk 100 million, the rate is 15 percent while it is 20 percent for those individuals who have more than Tk 100 million but less than Tk 150 million.

Those who have net wealth of more than Tk 150 million but less than Tk 200 million will have to pay 25 percent surcharge. The rate for assets more than more than Tk 200 million is 30 percent.

Muhith also proposed that the minimum surcharge be maintained at last year’s level, which is Tk 3,000 where the net wealth exceeds Tk 22.5 million.