Budget FY22: Individual income tax remains unchanged

Published at 03:41 pm June 3rd, 2021

web-Individual taxpayers avail tax services at the concluding day of the week-long tax fair at the O cers’ Club premises in the capital. A record number of tax returns was submitted this time, alongside the growth in tax income

File photo: Individual taxpayers avail tax services at the concluding day of the week-long tax fair at the Officers’ Club premises in Dhaka Syed Zakir Hossain/Dhaka Tribune

Tax burden for industrial entrepreneurs reduced

The government has proposed keeping the tax-free ceiling for individual taxpayers unchanged at Tk3 lakh in the next fiscal year 2021-22.

Finance Minister AHM Mustafa Kamal, during his national budget presentation in the parliament on Thursday, said that the existing tax rate for individual taxpayers will also be applicable for members of third gender communities to encourage social inclusion.

The government had previously raised the tax-free ceiling from Tk2.5 lakh to Tk3 lakh in the budget for fiscal 2020-21.

To make business easier, the finance minister proposed to reduce the tax burden for the industrial entrepreneurs of Bangladesh and decrease the Advance Tax (AT) from 4% to 3% for the import of raw materials for industries.

He also proposed imposing 1% VAT in case of registration of non-resident Bangladeshis and to consider invoices issued by banks, insurance companies, and ports as VAT challan.

A budget worth Tk6,03,681 crore has been proposed with special priority to health, agriculture, social safety nets, employments, food and disaster management, and food security apart from addressing the Covid-19 related issues.