Tax-free income ceiling may be fixed at Tk 165,000
Doulot Akter Mala | Wednesday, 25 June 2008
The government is likely to increase the tax-free income ceiling to Tk 165,000 for upcoming fiscal from the existing Tk 150,000, a finance ministry source said.
For female taxpayers and senior citizens above 70, the government might raise the tax-free income ceiling further to Tk 180,000, increasing by another 10 per cent from the limit of Tk 165,000 proposed in the budget presented on June 09 last.
The finance adviser in his budget speech has proposed to keep the income tax threshold unchanged for fiscal 2008-09. He has proposed to raise the ceiling for women and senior citizens to Tk 165,000.
"The existing limit for tax free income, tax rates, income slabs for individuals shall remain unchanged at Tk 150000 for the upcoming fiscal year as the limit for tax free income was considerably raised in the last fiscal year," the finance adviser said in the budget speech.
The finance ministry, however, has received a large number of requests from a cross section of people to raise the tax ceiling considering the high rate of inflation that has caused serious erosion in the real income of people.
In the last one year, the fixed income group of people were the worst affected because of the soaring price of essential commodities, hike in house rent and cost of transportation.
Finance ministry officials said they have received the maximum number of suggestions on enhancement of the income tax ceiling.
"The government is planning to increase tax ceiling although there has been a big jump in tax-exemption ceiling by Tk 30,000 to Tk 150,000 in the current fiscal from Tk 120,000 previously," an official said.
The tax net will be narrowed with the upward adjustment of tax-exemption ceiling. But due to the escalation of the cost of living and soaring inflation the government have no other way but to bear the brunt, he added.
Currently, around 1.0 million people are paying taxes against 2.2 million TIN (Taxpayers' Identification Number) holders.
A taxpayer has to pay minimum Tk 2000 tax for annual income above Tk 150,000.
In 1998-99, the amount of tax exemption limit was Tk 60,000 that increased to Tk 75,000 in 1999-2000. It was enhanced in almost every year and reached the level at Tk 150,000 in 2007-08.
For female taxpayers and senior citizens above 70, the government might raise the tax-free income ceiling further to Tk 180,000, increasing by another 10 per cent from the limit of Tk 165,000 proposed in the budget presented on June 09 last.
The finance adviser in his budget speech has proposed to keep the income tax threshold unchanged for fiscal 2008-09. He has proposed to raise the ceiling for women and senior citizens to Tk 165,000.
"The existing limit for tax free income, tax rates, income slabs for individuals shall remain unchanged at Tk 150000 for the upcoming fiscal year as the limit for tax free income was considerably raised in the last fiscal year," the finance adviser said in the budget speech.
The finance ministry, however, has received a large number of requests from a cross section of people to raise the tax ceiling considering the high rate of inflation that has caused serious erosion in the real income of people.
In the last one year, the fixed income group of people were the worst affected because of the soaring price of essential commodities, hike in house rent and cost of transportation.
Finance ministry officials said they have received the maximum number of suggestions on enhancement of the income tax ceiling.
"The government is planning to increase tax ceiling although there has been a big jump in tax-exemption ceiling by Tk 30,000 to Tk 150,000 in the current fiscal from Tk 120,000 previously," an official said.
The tax net will be narrowed with the upward adjustment of tax-exemption ceiling. But due to the escalation of the cost of living and soaring inflation the government have no other way but to bear the brunt, he added.
Currently, around 1.0 million people are paying taxes against 2.2 million TIN (Taxpayers' Identification Number) holders.
A taxpayer has to pay minimum Tk 2000 tax for annual income above Tk 150,000.
In 1998-99, the amount of tax exemption limit was Tk 60,000 that increased to Tk 75,000 in 1999-2000. It was enhanced in almost every year and reached the level at Tk 150,000 in 2007-08.