The tax-free income ceiling for individual taxpayers will remain unchanged at Tk2.2 lakh in the fiscal year 2014-15, while a new slab was introduced for the high income earning taxpayers at 30%.
Finance Minister AMA Muhith also proposed that the ceiling for other categories like women, elderly people of more than 65 years of age, disabled and freedom fighters would be increased.
The limit for female and senior citizens was raised from Tk2.5 lakh to Tk2.75 lakh and for physically challenged from Tk3 lakh to Tk3.5 lakh. For war wounded gazette freedom fighters, the rate was proposed at Tk4 lakh.
Other than the tax-free income threshold, the income tax slabs would be like 10% tax on Tk3 lakh income, 15% for next Tk4 lakh, 20% for next Tk5 lakh, 25% for next Tk30 lakh and 30% for over Tk44.2 lakh.
Regarding the introduction of the highest 30% tax for income over Tk44.2 lakh, the finance minister said the changes were proposed considering the principle of equity and progressivity with a view to ensuring equitable distribution of resources and to reducing economic disparity.
