30pc tax on high earners

In his new budget for 2014-15 fiscal, Finance Minister AMA Muhith has proposed doubling the tax rate on high earners. As per the proposal, presented in Parliament on Thursday, the tax rate would go up for those with annual income over Tk 4.42 million from the existing 15 per cent to 30 per cent. The budget proposal said this new tax rate was being imposed “with a view to ensuring equitable distribution of resources and to reducing economic disparity”. Muhith’s new top tax rate is similar to the Buffett Rule introduced by US President Barack Obama in 2011, in which income over $ 1 million is taxed at a minimum 30 per cent rate. The Buffett Rule is inspired by billionaire Warren Buffett, who has long voiced support for increased income taxes on the wealthy, according to a news agency.