UNB, Dhaka :
The taxpayers of the country are going to get some good news in the coming budget for 2018-19 fiscal, the last one of the present government.
The tax-free income ceiling for the individual taxpayers would be extended while there would be tax cut for the corporate sector. Finance Minister AMA Muhith will pronounce the new rates in the coming budget that will be placed in the Parliament on June 7.
According to the National Board of Revenue (NBR) sources, the rate of income tax free ceiling for the individual taxpayers would be Tk three lakh in the next budget which is currently Tk 2.5 lakh.
The ceiling for women and people above the age of 65-year would be Tk 3.25 lakh from existing Tk three lakh.
However, the tax ceilings for the taxpayers with disabilities and injured freedom fighters will remain the same – Tk four lakh and Tk 4.25 lakh respectively
Currently tax free ceiling of the individual taxpayers is Tk 2.5 lakh, which is calculated at 10 percent rate upto an income of Tk our lakh, at 15 percent for the income of next Tk five lakh, at 20 percent for the income of next Tk six lakh, 25 percent tax for next Tk three lakh and 30 percent tax on additional income.
Finance Minister AMA Muhith in a pre-budget meeting with the Economic Reporters’ Forum (ERF) has given the hint to increase the ceiling. From the same meeting the Finance Minister also informed that the corporate tax rate would be reduced. The reduction of corporate tax rate was a long standing demand of the businesses.
The tax rate for publicly traded company is 25 percent, non-publicly traded company is 35 percent,publicly traded bank, insurance and financial institution (other than merchant bank)/newly established bank, insurance and financial institutions approved by government in 2013 is 40 percent,non-publicly traded bank, insurance and financial institution is 42.5 percent,merchant bank is 37.5 percent.
The tax rate for cigarette, bidi , zarda, chewing tobacco or other tobacco products manufacturing company is 45 percent,publicly traded mobile phone company is 40 percent while non-publicly traded mobile phone company is 45 percent.The tax rate on the income from dividend is 20 percent.
The Finance Minister in his budget speech last year said, a limited number of sectors including non-listed banks, non-listed mobile phone operators and cigarette manufacturing companies were paying tax at more than 40 percent rate.”We plan to bring the rate down to 40 percent gradually of these sectors in future,” he said.
The taxpayers of the country are going to get some good news in the coming budget for 2018-19 fiscal, the last one of the present government.
The tax-free income ceiling for the individual taxpayers would be extended while there would be tax cut for the corporate sector. Finance Minister AMA Muhith will pronounce the new rates in the coming budget that will be placed in the Parliament on June 7.
According to the National Board of Revenue (NBR) sources, the rate of income tax free ceiling for the individual taxpayers would be Tk three lakh in the next budget which is currently Tk 2.5 lakh.
The ceiling for women and people above the age of 65-year would be Tk 3.25 lakh from existing Tk three lakh.
However, the tax ceilings for the taxpayers with disabilities and injured freedom fighters will remain the same – Tk four lakh and Tk 4.25 lakh respectively
Currently tax free ceiling of the individual taxpayers is Tk 2.5 lakh, which is calculated at 10 percent rate upto an income of Tk our lakh, at 15 percent for the income of next Tk five lakh, at 20 percent for the income of next Tk six lakh, 25 percent tax for next Tk three lakh and 30 percent tax on additional income.
Finance Minister AMA Muhith in a pre-budget meeting with the Economic Reporters’ Forum (ERF) has given the hint to increase the ceiling. From the same meeting the Finance Minister also informed that the corporate tax rate would be reduced. The reduction of corporate tax rate was a long standing demand of the businesses.
The tax rate for publicly traded company is 25 percent, non-publicly traded company is 35 percent,publicly traded bank, insurance and financial institution (other than merchant bank)/newly established bank, insurance and financial institutions approved by government in 2013 is 40 percent,non-publicly traded bank, insurance and financial institution is 42.5 percent,merchant bank is 37.5 percent.
The tax rate for cigarette, bidi , zarda, chewing tobacco or other tobacco products manufacturing company is 45 percent,publicly traded mobile phone company is 40 percent while non-publicly traded mobile phone company is 45 percent.The tax rate on the income from dividend is 20 percent.
The Finance Minister in his budget speech last year said, a limited number of sectors including non-listed banks, non-listed mobile phone operators and cigarette manufacturing companies were paying tax at more than 40 percent rate.”We plan to bring the rate down to 40 percent gradually of these sectors in future,” he said.
