Personal tax increasing in budget

Staff Correspondent: The personal tax rate may be increased by five percent in the upcoming fiscal year 2024-25. Currently, the tax rate at the individual level may increase from 25 percent to 30 percent. Apart from this, the demand to increase the tax-free income limit considering the inflation is not being accepted. It is said to be limited to Tk 3.5 lakh. This information is known from the Finance Department of the Ministry of Finance.
Individual taxes are rising on the rich. Those whose annual income is more than Tk 16 lakh will be taxed at 30 percent. But those whose income is less than Tk 16 lakhs will not come under this.
Sources in the Ministry of Finance said that Finance Minister Abul Hassan Mahmud Ali, State Minister for Finance Wasika Ayesha Khan, Finance Department Secretary, Chairman of NBR, Governor of Bangladesh Bank have already consulted with Prime Minister Sheikh Hasina about the upcoming budget. Finance Minister Abul Hassan Mahmud Ali joined the meeting and participated in the meeting.
Sources in the Ministry of Finance said that the existing VAT exemption may be proposed to be phased out in this year’s budget. Not only this, the National Board of Revenue (NBR) also plans to move towards a uniform VAT rate. In this case, 2, 3, 5, 7 on various products and services. The government is thinking of moving towards a fixed but uniform VAT rate by scrapping the process of collecting VAT at 5, 10 and 15 percent.
According to Finance Ministry sources, the proposed budget for the upcoming fiscal year 2024-25 has tax-free income limit of Tk 3.5 lakhs. The Prime Minister has agreed not to raise this limit on tax-free income. Despite rising inflation, the tax-free life expectancy at the individual level is reportedly not being increased in the upcoming budget. Last year this limit was increased from Tk 3 lakh to Tk 3.5 lakh.
Sources said that the cost of import of agricultural inputs and fertilizers will not increase. Because Prime Minister Sheikh Hasina has advised not to increase the duty on the import of agricultural materials and fertilizers.
Currently, if customers recharge their mobiles with Tk 100, they can talk about Tk 73 after deducting VAT and supplementary duties. If the supplementary duty is increased by 5 percent, the customers will be able to talk about Tk 69.35 out of Tk 100. The Prime Minister has given positive consent to this proposal to increase the supplementary duty on mobile phone calls to increase revenue collection.
According to sources, the proposed budget for the upcoming financial year 2024-25 has set a revenue target of Tk 4 lakh 80 thousand crores. In the budget of the current financial year 2023-24, this target has been fixed at Tk 4 lakh 30 thousand crores. But later it was revised to Tk 4 lakh 10 thousand crores.