A raise in taxes on wealthy individuals in the budget for the next fiscal year is under consideration as part of upgraded fiscal measures geared towards enhancing revenues in proportion to Bangladesh's gross domestic product (GDP).
The government's revenue authority -- the National Board of Revenue -- also plans to review the wealth tax and introduce an inheritance tax to boost revenue collection, NBR Chairman Abdur Rahman Khan said Tuesday.
As envisaged by the NBR, the tax rate for ultra-rich individuals may rise to 35 per cent from the existing 30 per cent under an upgraded fiscal measure that may come into effect in the financial year (FY) 2027-28.
"We have a plan to implement this from the year after the next fiscal year. I will place the proposal before the finance minister," Mr Khan said at a pre-budget discussion with leaders of the Economic Reporters Forum (ERF) at the NBR headquarters in Agargaon.
He said the revised rate could apply to a "super-rich group" -- those earning more than Tk 10 million annually, or possibly at higher thresholds such as Tk 15 million or Tk 50 million.
He also said the government could introduce an inheritance tax, which would apply to inherited assets.
The NBR chief further indicates that the upcoming budget for FY2026-27 may include measures to raise the prices of tobacco products.
He mentions that in the last round of tax hikes, only tobacco products were brought under the increased tax net while bidi was left out. This year, however, bidi may also be considered.
Referring to revenue losses caused by illegal tobacco manufacturers, Mr Khan told the pre-budget meet that the NBR would use modern technology to prevent tobacco-tax evasion, including the use of counterfeit tax stamps.
The revenue board has decided to cut down the list of tax-exempt industries in a bid to improve revenue realisation.
Responding to a question, Mr Khan said the NBR-reform agenda made progress and that the authority was now awaiting a government decision on the NBR separation issue, which is likely to be placed before the cabinet.
President of ERF Doulot Akter Mala placed a 37-point proposal for the next fiscal year.
Among other proposals, she suggests introducing tax refund through mobile financial services (MFS) for individual taxpayers.
Also present at the discussion were ERF General Secretary Abul Kashem, NBR officials, and other senior ERF leaders.
Newsmanjasi@gmail.com
