The well-off section of the people may witness an upward revision of tax measures on their wealth and tax slab in the budget for upcoming fiscal year (FY), sources concerned said.
The National Board of Revenue (NBR) is likely to increase income tax or surcharge on net wealth and incorporate a new slab 30 per cent for individual taxpayers having annual income above Tk 3.0 million.
People having wealth above Tk 100 million to Tk 200 million may have to pay 15 per cent surcharge in addition to their normal taxes.
Net wealth above Tk 200 million to Tk 300 million will be subject to pay 20 per cent surcharge while above Tk 300 million, it is 25 per cent.
The changes are likely to take place in the budget for fiscal year (FY) 2014-15. Officials, however, said the rates may undergo changes even in the last minute following instruction of the government high-up.
The maximum tax rate for individual taxpayers is 25 per cent on their annual income above Tk 1.2 million.
The highest rate is likely to be increased by 5.0 per cent in the budget by adding a new threshold above Tk 3.0 million.
Current tax rates for individual taxpayers are 10, 15, 20 and 25 per cent.
Sources concerned said the individual taxpayers are currently enjoying the highest tax rebate on their investment. Actual tax rate of individual taxpayers is far below than that of 25 per cent as they are getting rebates. The NBR has taken the move to offset loss of taxes from individual taxpayers having higher income.
Tax-free limit for freedom fighters might be set at Tk 4,00,000. However, tax-free limit for individual taxpayers will remain unchanged at Tk 2,20,000, sources said.
Corporate tax for banks, non-banking financial institutions and insurance companies may remain unchanged at 42.5 per cent. Non-listed companies might see a cut in their taxes to 35 per cent from existing 37.5 per cent.
Officials said the government is so far firm on not allowing black money whitening facility in the upcoming FY despite several pressures from influential quarters.
The existing income tax law on voluntary disclosure of income will remain unchanged. Opportunity to declare undisclosed income through investment in real estate sector is set to be scrapped after the NBR found poor response from the investors.
The NBR introduced the surcharge on net wealth in 2011. In the current FY, wealthy people having assets above Tk 20 million to Tk 100 million are paying 10 per cent surcharge. Surcharge has been imposed at 15 per cent on net wealth above Tk 100 million.
The NBR has observed a gradual increase of wealth tax collection since its inception in FY 2011-12.
The NBR received some Tk 1.31 billion taxes until April of the current FY as surcharge against Tk 650 million in FY 2011-12.
