Finance Minister AMA Muhith on Thursday proposed to increase the tax free income ceiling for individual taxpayers to Tk2,20,000 for the next fiscal year from the present Tk2,00,000.
“Considering the issues of prevailing inflation, increasing living expense and the necessity of reducing tax liability of marginal taxpayers, I would propose to increase the threshold of tax free income for individual taxpayers from Tk2,00,000 to Tk2,20, 000,” he said in the Parliament while placing the budget for the next fiscal (2013-14).
Muhith also proposed to increase such threshold for women and senior citizens aged over 65 years from Tk2,25,000 to Tk2,50,000, and for the physically challenged taxpayers from Tk275,000 to Tk300,000.
Besides, he also proposed to reduce and fix the minimum tax for the individual taxpayers living in the municipality areas of district town at Tk2,000 and the taxpayers of other places including villages at Tk1,000 while retaining the minimum tax at Tk3,000 for the taxpayers living in the city corporation areas.
“Such reduction in payment of minimum tax, I believe, would motivate the taxpayers in the rural areas to pay tax with effective impact in widening the tax net,” he said.
