BUDGET SNIPPETS | The Every day Star

Tax-free income limit unchanged 

The tax-free income limit for individuals has been kept unchanged at Tk 300,000 for the next fiscal year. The threshold for women, senior citizens, individuals belonging to the third gender, physically challenged persons and wounded freedom fighters also did not see any change.

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No change in wealth surcharge

Wealthy taxpayers will not have to pay any increased amount of wealth surcharge in the next fiscal year as the ceiling on net wealth and the corresponding rate of tax surcharge have been kept unchanged for one more year. This is the second year the surcharge was kept unchanged.

Proof of tax return mandatory

Contractors and suppliers may have to pay an additional 50 per cent in source tax from the next fiscal year if they fail to submit the proof of submission of income tax returns.

Tech giants to come under tax net

Global tech giants such as Google and Facebook will come under the tax net from the next fiscal year as the National Board of Revenue seeks to make submission of returns mandatory for the firms that have no physical presence in Bangladesh but are doing business here.

Show proof of return for lower tax on interest

Savers at banks and financial institutions will have to show the proof of tax return filing to enjoy a 10 per cent tax on their interest earnings. If savers fail to furnish proof, the rate of deduction will be 50 per cent higher.

Pay tax on time or lose utility services

The National Board of Revenue has sought to include a provision in the income tax law in the FY23 that would allow it to ask utilities to cut off the gas, electricity and water connections of users if they fail to pay bills on time. 

 

 

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