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Surcharge on two pvt cars, 8000sq ft of house space

FE Report | June 08, 2018 12:00:00

People owning two private cars or a house in a city corporation area might be required to pay wealth surcharge from the next fiscal year (FY).

Additional wealth tax may apply to those owning two four-wheel motor cars or a house with an aggregate size of 8,000 square feet or above.

The proposed Finance Bill-2018 has incorporated a provision to bring more well-off people under the purview of the wealth tax.

Finance Minister AMA Muhith proposed imposition of at least Tk 3,000 as surcharge for any individual with net wealth exceeding Tk 22.5 million.

He also proposed a minimum surcharge of Tk 5,000 for any individual with net wealth exceeding Tk 100 million.

Surcharge on the manufacturers of cigarette, bidi, zarda, gul and other tobacco products remains unchanged at 2.5 per cent in the proposed budget.

Wealth surcharge is imposed at a certain rate ranging from 10 per cent to 30 per cent on the payable income tax of well-off people.

People having income above Tk 22.5 million (2.25 crore) have to pay wealth surcharge as per the Income Tax Ordinance-1984.

Mr Muhith on Thursday placed in parliament the national budget for FY 2018-19.

He is the first finance minister to unveil the budget for 10th time in a row since 2009.


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