What changes are coming to the Finance Bill for FY 2024-25?

The parliament is set to pass the national budget on Saturday

Bangladesh’s parliament is set to pass the national budget while offering the amnesty to legalise undisclosed income by paying a 15 percent tax. The maximum individual income tax rate is also remaining unchanged at 25 percent instead of 30 percent.

The parliament is set to pass the bill on Saturday, a month after a discussion on the proposed budget for fiscal year 2024-25.

In his budget speech, Finance Minister Abul Hasan Mahmood Ali had proposed to increase the individual tax rate from 25 percent to 30 percent for the highest income earners.

Any income from the universal pension scheme or any amount paid to the scheme will be exempted from tax. Companies, funds and trusts will have to pay a 15 percent tax on earned capital gains. In the previous budget proposal, this provision only applied to individuals.

People who own multiple cars will have to pay an environmental surcharge, and amendments are being made to the bill so that the provision will not apply to any government institutions or companies.

Any taxpayer showing their income increasing by 15 percent from the previous year’s income tax returns will not have to face an audit.

In addition, an income tax return deposit slip is mandatory to rent any community centres or convention halls under the city corporations. Under the previous budget proposal the provision was to apply for the rental of all community centres or convention halls.