Finance Minister AHM Mustafa Kamal has proposed to raise the advance income tax (AIT) for private cars and sport utility vehicles (SUVs) for the incoming FY2020-21.
Kamal made the announcement while presenting the national budget for the 2020-21 fiscal year at the parliament on Thursday afternoon.
The minister proposed Tk25,000 (currently Tk15,000) as AIT for owners of cars and SUVs with the engine capacity up to 1,500cc.
Moreover, as per the proposal, those who own SUVs and cars ranging from 1,500cc to 2,000cc , 2,000cc to 2,500cc, 2,500cc to 3,000cc, and 3,000cc to 3,500cc will -- for the 2020-21 fiscal year -- have to pay Tk50,000 (currently Tk30,000) Tk75,000 (currently 50,000), Tk1.25 lakh (currently Tk75,000), and Tk1.50 lakh (currently Tk1 lakh) respectively as AIT.
Besides, tax for the cars and SUVs having engine capacity above 3,500cc will go up to Tk2 lakh from the preset amount of Tk1.25 lakh.
Meanwhile, AIT for microbuses has been proposed at Tk30,000 against the current rate of Tk20,000.
In Bangladesh, the Bangladesh Road Transport Authority (BRTA) collects AIT for registration and renewal of fitness certificates of vehicles on behalf of the National Board of Revenue (NBR).
