The government is likely to introduce three slabs of minimum income tax for the people having Taxpayers Identification Number (TIN), instead of the uniform tax rate of Tk4,000 as proposed in the budget for fiscal year 2015-16.
However, all the three existing rates based on locations would see a rise, officials at the finance ministry said.
People in most advanced areas of the country will have to pay tax at the highest rate of Tk5,000 while it will be Tk3,000 for people living in rural areas, they said.
While placing the budget for FY2015-16 in parliament on June 4, Finance Minister AMA Muhith proposed to introduce uniform minimum income tax rate of Tk4,000 from the existing different rates.
He argued that the direct tax is universal in nature and such uniform rate should be applicable regardless of geographical locations in Bangladesh. The National Board of Revenue (NBR) recently finalised a proposal to introduce the three slabs and submitted to the finance minister for consideration. The government has made changes in the proposed tax rate, following the observation of a cabinet committee meeting, officials said.
According to the NBR proposal, the taxpayers living in Dhaka and Chittagong city corporations areas will have to pay the highest tax at the rate of Tk5,000, while the rate will be Tk4,000 for taxpayers living in other city corporations and Tk3,000 for taxpayers living outside the city corporation areas.
Currently, the minimum tax for city corporation residents is Tk3,000, for district residents Tk2,000 and for residents of upazila and other areas Tk1,000.
