The government is likely to increase slightly the exemption limit in the case of wealth tax, known as surcharge, and lower the tax rate on purchase of apartments in the semi-urban and rural areas with undisclosed income, in the upcoming fiscal year (FY) 2015-16.
An individual taxpayer having net asset above Tk 22.5 million may be required to pay 10 per cent surcharge from the next FY. Currently, the threshold is Tk 20 million.
Finance Minister AMA Muhith may propose the tax measures in the budget for the FY 2015-16, to be placed in the parliament on June 4.
The government may also withdraw from the next fiscal the existing upfront tax on profit earned from the government securities.
The National Board of Revenue (NBR) in the current fiscal year imposed 5.0 per cent tax on profit derived from the government securities.
But bankers raised concern over imposition of the tax, fearing that the measure would hurt the securities market.
Besides, the provision of deduction of tax at source on capital gain of the companies and partnership firms from the capital market may be scrapped. However, the companies or participatory firms might be required to pay tax on their own from the upcoming FY.
Currently, custodian banks, merchant banks, financial institutions or Trading Right Entitlement Certificate (TREC)-holder companies have to deduct 10 per cent tax on capital gain of the companies and partnership firms.
High-salaried private sector executives may have to pay tax on 'profit-participatory fund' from FY 2015-16. However, there would be a tax-free ceiling of Tk 120,000. Executives will have to pay income tax at regular rate on 'profit participatory fund', if it exceeds the ceiling.
Under the existing income tax law, people can invest undisclosed funds, without facing any query from taxmen, on purchase of flats and apartments by paying specific amount of taxes.
Sources concerned said the existing tax rate may be cut for encouraging investment of undisclosed income through the purchase of apartments in the semi-urban and rural areas.
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