DHAKA: The ceiling of tax-free income of an individual has been remained unchanged at Tk 180,000 in the proposed budget in spite of soaring inflation.
Finance Minister AMA Muhith in his budget announcement Thursday made the proposal of tax-free income, belying expectation from various quarters for far higher level of exemption in view of higher cost of living for price spirals and devaluation of the Taka.
He said, “The role of direct taxes is significant in establishing a society based on equity and justice as well as ensuring socio-economic development.”
The lawmaker said, “Considering economic growth and increase in per capita income, I propose to increase the minimum tax payable by an individual taxpayer to Tk 3,000 in FY 2012-13 from Tk 2,000 fixed three years ago.”
Among various sources of direct taxes, income tax is the major source of the revenue. “Due to globalization and increasing trade liberalization, the international trade-based revenue is gradually declining,” he told the house.
The inflation recorded 9.15 percent in May, according to Bangladesh Bureau of Statistics.
To start with, without changing the rates of individual and corporate taxes for FY 2012-2013, he proposes to retain the rates announced in FY2011-12. “We think an opportunity should be given for evaluating the impact of amendments introduced in the last three years,” he said.
“In Minimum Tax Payable this context, I propose to retain the threshold of tax free income for individual taxpayer at Tk 180,000,” he said.
BDST: 1832 HRS, JUN 07, 2012
Edited by: M. Mahbub Alam, Asst Output Editor
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