Tax-free ceiling rises to Tk 40m

The fiscal year (FY) 2023-24 budget has offered a benefit for well-off people through raising their tax-free limit for wealth surcharge.

The limit for surcharge has been proposed to be raised to Tk 40 million from existing Tk 30 million.

According to the proposed Finance Bill-2023, minimum surcharge rate would be 10 per cent if net wealth of an individual exceeds Tk 40 million and 35 per cent for net wealth exceeding Tk 1.0 billion.

Currently, a 10-per cent surcharge is imposed on assets worth between Tk 30 million and Tk 100 million or in case of having more than one car or owning over 8,000 square feet of real estate.

The surcharge rate is 20 per cent for those whose assets are worth between Tk 100 million and Tk 200 million.

On the other hand, 30-per cent surcharge is for those with assets between Tk 200 million and Tk 500 million.

The budget proposes that taxpayers with assets exceeding Tk 500 million have to pay a 35-per cent surcharge.

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