New tax measures to cut rich-poor gap

FE Report | Published: June 06, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The proposed budget for the fiscal year (FY) 2014-15 has incorporated a number of tax measures to net in the well-off section of people and reduce the rich-poor gap.
Finance Minister AMA Muhith has proposed a new 30 per cent slab for individual taxpayers having an annual income above Tk 4.42 million each. He also proposed increased rates of surcharge on net wealth of taxpayers.
"Considering the principle of equity and progressivity with a view to ensuring equitable distribution of resources and reducing economic disparity, I would propose to increase tax rate from 25 per cent to 30 per cent for the high income earning taxpayers having annual income of more than Tk 4.42m," the finance minister said.
Currently, the highest rate for individual taxpayers is 25 per cent. The budget also proposed a 30 per cent tax slab for non-resident Bangladeshis in line with the highest rate for individual taxpayers.
The Finance Minister proposed to keep the tax-free income limit for individual taxpayers unchanged at Tk 0.22m.
The surcharge has been revised upward by 10 to 25 per cent on assets of well-off section of people on the basis of their ownership of wealth.
To empower women and involve them more with the economic activities and to reduce the tax burden of senior citizens, the Finance Minister proposed an increase in the tax-exempted income threshold for women and senior citizens over 65 years from Tk 0.25m to Tk 0.275m.
In view of the responsibility of both the society and the state for physically challenged people, the Finance Minister proposed an increase in the tax-exempted income threshold for them from Tk 0.3m to Tk 0.35m. He also proposed an increase in the tax exempted income threshold for gazetted war-wounded freedom fighters to Tk 0.4m.
Individual taxpayers having an annual income above Tk 0.22m to Tk 0.52m have to pay tax at 10 per cent rate followed by 15 per cent for income up to Tk 0.92m, 20 per cent for up to Tk 1.42m, 25 per cent for up to Tk 4.42m.
Surcharge on people having any net asset worth above Tk 20 million to Tk 100 million has been proposed at 10 per cent while 15 per cent for up to Tk 2000 million, 20 per cent for up to Tk 300 million and 30 per cent for above Tk 300 million.