Finance Minister AHM Mustafa Kamal on Thursday proposed to raise the tax-free income threshold to Tk 3 lakh amid the global outbreak of the COVID-19 pandemic.
“I propose to increase tax-free income threshold of male taxpayers from Tk 2.5 lakh to Tk 3 lakh and tax-free income threshold of female taxpayers and taxpayers above 65 years of age from Tk 3 lakh to Tk 3.50 lakh respectively,” he said while placing the proposed national budget for 2020-21 fiscal in parliament.
Kamal said “Our valued taxpayers have been financially affected due to the global outbreak of COVID-19. Considering it and other factors and also as a gift of the ‘Mujib Borsho’, I propose to increase the tax-free income threshold and reduce the tax rate applicable for the taxpayers.”
The minister went on saying that the reduction of tax burden will hopefully add some comfort to the lives of the individual taxpayers, and will also make them feel encouraged to pay taxes regularly.
Besides, the finance minister also proposed “reduction of minimum tax rate for individuals from 10 percent to 5 percent, and the maximum tax rate for individuals from 30 percent to 25 percent”.