Considering prevailing inflation, increased cost of living and reduced tax burden for marginal taxpayers, the tax-free income ceiling for individuals has been proposed to be raised to Tk 250,000 a year.
Finance Minister Abul Maal Abdul Muhith made the proposal while placing the national budget for the 2015-16 fiscal in the National Parliament on Thursday.
Currently the tax-free income exemption limit is Tk 220,000 a year.
While presenting the budget, Muhith proposed increasing the tax exemption threshold for women and senior citizens, aged over 65 years, from Tk 2.75 lakh to Tk3 lakh.
The minister also proposed increasing the tax exemption threshold for gazetted war-wounded freedom fighters from Tk4 lakh to Tk 4.25 lakh.
In view of the responsibility of both society and the state, the budget proposed increasing the tax exemption threshold for physically challenged people from Tk3.5 lakh to Tk3.75 lakh.
