Zarif Mahmud: Finance Minister AHM Mustafa Kamal will present the last budget of the current government in the National Parliament today. This year’s budget emphasizes new income tax laws and tax hikes, prioritizing International Monetary Fund (IMF) conditions over election-time populism.
The finance minister has drawn a table for tax collection from the poor, lower class people, exempting the upper-class rich. There are a bunch of proposals for tax net expansion in the next budget.
Tax of Tk 2,000 even if there is no taxable income: From the next financial year, the return deposit slip or acknowledgment of receipt is being made mandatory for availing 44 public and private services. Notable among these are – to borrow more than Tk five lakh; To obtain trade license from city corporation or municipality; To deed land-flat; To take gas-electricity connection; Slips must be submitted compulsorily to buy savings bonds above Tk 5 lakh.
To get this slip, even if there is no taxable income after July 1, a minimum tax of Tk 2,000 has to be paid. Basically poor, lower-class people have to pay this tax.
The Finance Minister feels that it is everyone’s responsibility to ensure participation in the government’s public service work by paying minimum taxes against the facilities available from the state.
Tax-free income limit is increasing: Due to the decrease in real income due to inflation, the tax-free income limit of individuals is being increased by Tk 50 thousand to Tk 3.5 lakh in the budget. Similarly, female taxpayers are being given Tk 4 lakh, third gender and disabled persons Tk 4 lakh 75 thousand and freedom fighters Tk 5 lakh.
The minimum pre-tax rate is Tk 5,000 for taxpayers located in Dhaka North and South City Corporation and Chittagong City Corporation areas, Tk 4,000 for taxpayers in other City Corporation areas and Tk 3,000 for taxpayers in areas other than City Corporation.
More tax concessions if banks deposit more: The limit of tax concessions in Bank DPS (Deposit Pension Scheme) is being increased. In other words, if you deposit more money in the bank, you will get more tax deductions. At present tax concession is available in DPS up to Tk 60 thousand (five thousand per month), this is being increased to Tk 120,000 (10 thousand per month). The matter is mentioned in the new income tax law.
Environment Surcharge in case of multiple vehicles: In case of multiple vehicles, ‘Environment Surcharge’ is being levied on registration or renewal of fitness. Currently, multiple vehicle registration or fitness renewal requires an additional 50 percent advance income tax on the second vehicle. Carbon surcharge is going to be added to it. Tk 25,000 for 1500 cc or 75 kw cars, 1500 cc (75 kw) to 2000 cc (100 kw)
Tk 50 thousand for cars, Tk 75 thousand for cars from 2000 cc (100 kw) to 2500 cc (125 kw), Tk 1 lakh 50 thousand for cars from 2500 cc (125 kw) to 3000 cc (150 kw), 3000 cc (150 kw) KW) to 3500 cc (175 KW) vehicles will have to pay a carbon surcharge of Tk 2 lakh and Tk 3.5 lakh for vehicles with a capacity of more than 3500 cc (175 kw).
Tax exemption for the rich: There is a proposal to reduce the tax burden on the rich. Now rich people have to pay surcharge or wealth tax if they have more than Tk 3 crores of wealth or more than one car or a house of more than 8000 square feet. It is being increased to Tk four crore. On the other hand, tax must be paid at the previous rate. The rich will have to pay less income tax.
No change in corporate tax: After 3 consecutive years of reduction, corporate tax is not being reduced in the next budget. Listed and unlisted in the capital market; Banks, insurance and financial institutions; Mobile companies and cigarette manufacturers will have to pay corporate tax at current year rates.
Tax at source is increasing in land registration: To increase tax collection, tax at source is being increased in land registration. At present, 1 percent registration fee, 1.50 percent stamp duty of the value written in the deed at the time of land registration,
Local government tax is 2-3 per cent per area and 4 per cent for areas included in Rajuk (Capital Development Authority) and CDA (Chittagong Development Authority), 3 per cent for other city corporations and municipal areas. In the next budget, tax at source on land registration is being increased to 10 percent. From July 1, additional tax will be paid for land registration in Rajuk and CDA areas.
Travel tax on the rise: Travel tax is being increased. From July 1, traveling from one district to another district of the country by air will have to pay a travel tax of Tk 200, so far there was no need to pay travel tax within the country. At present, the tax of Tk 500 for traveling abroad by land and Tk 800 by sea is in force, it is being increased to Tk 1000. There is a tax of Tk 1,200 for air travel to SAARC countries, which is being increased to Tk 2,000.
There is a tax of Tk 3000 on traveling to other countries, it is being made to Tk 4000. At the same time, traveling by air to North America, South America, Europe, Africa, Australia, New Zealand, China, Japan, Hong Kong, North Korea, South Korea, Vietnam, Laos, Cambodia and Taiwan has a travel tax of Tk 4,000 per passenger, which has been increased to Tk 6,000.
New rules for bringing in gold bars: Baggage rules are being amended to encourage remittances through banking channels. At present, gold bars weighing 234 grams (20 bhori) can be imported with a duty of Tk 2,000 per bhori.
Bringing gold bars in the budget is being reined in. Not more than one gold bar weighing 117 grams (10 varis) can be brought. If brought more than once it will be confiscated in favor of the state. At the same time, a duty of Tk 4 thousand has to be paid for each load. However, according to the previous rules, one hundred grams of gold ornaments can be brought, for which no duty has to be paid.
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