The rule to collect the surcharge from wealthy individual taxpayers in Bangladesh at certain rates based on their income tax has been existing for the last few years
Published : 01 Jun 2023, 06:18 PM
The government has proposed a certain tax rebate for wealthy individual taxpayers in the new fiscal year starting in July.
Currently, the minimum threshold for collecting a surcharge from an individual taxpayer stands at Tk 30 million. That has been raised to Tk 40 million in the next year.
On Thursday, Finance Minister AHM Mustafa Kamal proposed a minimum surcharge amounting to 10 percent where the net wealth of an individual exceeds Tk 40 million, as he tabled the national budget for FY2023-24 in parliament.
He also proposed a 35 per cent surcharge for individuals who have net wealth exceeding Tk1 billion.
The rule to collect the surcharge from wealthy individual taxpayers in Bangladesh at certain rates based on their income tax has been existing for the last few years, the finance minister said in his speech.
The surcharge of individual taxpayers ensures a balanced distribution of income and wealth along with the economic development of society, the minister said.
The reason behind raising the minimum limit of the surcharge is to ‘simplify enforcement of surcharge levy and reduce the burden of the middle-class taxpayers,” he said.
This surcharge will be out of the income tax periphery. The upcoming budget proposed a tax-free income threshold of Tk 350,000.
Taxpayers will have to pay 5 per cent tax when their income is Tk 100,000 more than the threshold, 10 per cent when Tk 300,000 more, and 15 percent when Tk 400,000 more than the threshold.
In case their income is Tk 500,000 more than the threshold, a taxpayer has to pay 20 per cent tax and the rest of his income will be charged at a rate of 25 peper cent