Fish farming sector has long been enjoying the reduced tax rate facility, says the finance minister
The income tax for fish and poultry hatchery farmers will be raised and a new tax slab will be introduced in the proposed national budget of the 2021-22 fiscal year.
Finance Minister AHM Mustafa Kamal has proposed imposing 10% tax on income of over Tk20 lakh and 15% for over Tk30 lakh, up from the present 10%.
"We, the Bangalis, live on fish and rice. Hence, with a view to promoting fish farming, this sector has long been enjoying the reduced tax rate facility," the minister said in his budget speech on Thursday.
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"Keeping this privilege in place, I propose to rationalize the existing tax rate and introduce only one additional slab of tax on income from fisheries exceeding a certain limit," he added.
Currently, fish and poultry hatchery farmers do not have to pay any tax for an annual income of Tk10 lakh.
Only 5% tax is payable on the next Tk10 lakh in income. On annual incomes of over Tk20 lakh, 10% is payable as tax, whereas the highest rate of tax for an individual is 25%.