“An individual taxpayer having a net wealth of Tk 500 million or above will have to pay higher of 0.1 percent of net wealth or 30 percent of his income tax payable as surcharge,” he said in the budget speech presented in parliament on Thursday.
The government has observed that a large number of wealthy declare much less than what they earn. “Consequently, they pay an insignificant amount of surcharge because their revealed little income,” said the finance minister.
At present, wealth tax law does not exist in Bangladesh. Instead of paying wealth tax, wealthy individual taxpayers in Bangladesh pay surcharge at certain rates based on their income tax. This provision of surcharge has been in force for the last few years.
Currently, surcharge applies to taxpayers having net wealth above Tk 22.5 million. The minister also proposed to raise the limit of surcharge to Tk 30 million.
He further proposed a minimum surcharge amounting to Tk 3,000 where net wealth of an individual exceeds Tk 30 million and a minimum surcharge, amounting to Tk 5,000 for individuals exceeding Tk 100 million.
In addition, a 2.5 percent surcharge on the profit of the business of manufacturers of cigarķette, bidi, zarda, gul and other tobacco products will remain unchanged.