Tax-free income limits three lakh taka

The government has increased the tax-free income limit in the proposed budget for the fiscal year 2020-21. Next year, the tax-free income limit will be three lakh taka.

This information was given by Finance Minister AHM Mustafa Kamal in his proposed budget speech for the fiscal year 2020-21 in the budget session of the National Assembly on Thursday (June 11).

Speaker Dr. presided over the session. Shirin Sharmin Chowdhury.

The Finance Minister said, “I am proposing to increase the tax-free income of male taxpayers from Tk 250,000 to Tk 300,000 and the tax-free income of female taxpayers and taxpayers above 65 years of age from Tk 300,000 to Tk 350,000.” At the same time, I am proposing to reduce the minimum tax rate from 10 percent to 5 percent and the maximum tax rate from 30 percent to 25 percent.

No tax has to be paid up to three lakh taka. 5 percent tax on income up to the next 1 lakh taka, 10 percent up to the next 3 lakh taka, 15 per cent up to the next 4 lakh taka, 20 percent up to the next 5 lakh taka and 25 percent tax on the remaining income.

Mustafa Kamal said taxpayers have suffered financially this year due to the global corona virus outbreak. Taking these issues into consideration, I am proposing a slight increase in the tax-free income limit and a reduction in the tax rate for taxpayers other than companies and local authorities, especially individual taxpayers. It is hoped that the reduction in the tax burden of individual taxpayers will bring back some comfort in life and encourage taxpayers to pay taxes regularly.

Sunbd/NJ