05:35 PM, June 05, 2014 / LAST MODIFIED: 01:53 AM, March 08, 2015

Tax slab raised for women, 65+ taxpayers

Tax slab raised for women, 65+ taxpayers

Corporate tax rate reduced from 37.5 to 35 percent, threshold for individuals' taxable income remains same at Tk 2.2 lakh
Star Online Report

The finance minister has proposed to raise the income tax slab for women tax payers and those of 65 years and above by Tk 25,000 to Tk 2.75 lakh.
However threshold of taxable income of individual tax payers remains the same, Tk 2.2 lakh.
Placing his budget proposal before the parliament, AMA Muhith proposed to reduce corporate tax rate for non-listed companies from 37.5 percent to 35 percent "to ensure employment opportunities for our workforce as well as  to  attract  foreign  direct  investment  (FDI)".
He also proposed to reduce turnover tax of both companies and partnership firms from 0.50 percent to 0.30 percent.
The finance minister also proposed to increase tax rate from 25 percent to 30 percent for the high income earning taxpayers having annual income of more than Tk. 44.20 lakh "with a view to ensuring equitable distribution of resources and to reducing economic disparity".
"In view of the responsibility of both the society and the state for physically challenged people, I propose to increase tax exempted income threshold for them from Tk 3 lakh to Tk 3.5 lakh," Muhith said, also proposing to increase tax exempted income threshold for gazetted war-wounded freedom fighters to Tk 4 lakh.
To turn Bangladesh to a middle-income country, the minister proposed tax holiday, tax rebate and change of tax rates.
"To encourage female education as well as vocational education, I propose to exempt all donations through banking channels to girls’ schools or colleges and vocational and technical institutions from payment of tax."
Muhith also proposed to treat all donations through banking channel to national level research institutions established under any law engaged in research work in the field of agriculture, industry, science and technology as totally exempted from tax payment.
To create investment-friendly atmosphere for industrialisation and economic progress, the minister proposed to extend the existing tax holiday facilities from June 2015 to June 2019.
"I also propose to reinstate the facilities of accelerated depreciation alternative to tax holiday for the new industrial entrepreneurs."
Muhith proposed to offer tax exemption facilities for five years in graduated rate for Demutualised Stock Exchange with a view to maintaining stability in capital market together with its continual expansion and strengthening.
"I also propose to extend the limit of tax exempted dividend income from Tk 10,000 to Tk 15,000.


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