The upcoming budget is likely to propose reducing the tax rebate on investment in some specific sectors by individuals to 10% from existing 15%, apparently to enhance revenue income.
A senior official said the National Board of Revenue (NBR) has already taken the decision and it would be placed in parliament with other budget proposals for the fiscal 2014-15.
At present, the rebate is entitled to an amount of Tk1.5 crore or 30% of an individual’s income – whichever is lower. The government had raised the rebate to 15% in the last budget while raising the allowable limit from Tk1 crore to boost investment and economic growth.
Officials said the tax rebate will be applicable for life insurance premium up to 10% of the face value, contribution to provident fund and other funds like recognised provident fund, supper annuation fund, Zakat fund, and mutual fund-approved debenture or debenture stock, stocks or shares; investment in unit certificates; contribution to any Deposit Pension Scheme (DPS) not exceeding Tk60,000; donation to charitable hospital, or philanthropic or educational institutions, socioeconomic or cultural development organisations; donation to Asiatic Society of Bangladesh, Muktijudha Jadughar, national level institution set up in memory of liberation war or the father of the nation; and any investment in
Bangladesh government treasury bonds etc.
