Budget 2020-21 FY: Tax-free income limit rises to Tk 3 lakh

Tax-free income ceiling has been proposed to be raised to Taka 3 lakh to give relief to low-income people and encourage more people to pay tax.

“I propose to increase tax-free income threshold of male taxpayers from Taka 2.50 lakh to Taka 3 lakh and tax-free income threshold of female tax payers and tax payers above 65 years of age from Taka 3 lakh to Taka 3.50 lakh respectively,” said finance minister A H M Mustafa Kamal while placing the national budget for fiscal year 2020-21 at the Jatiya Sangsad on Thursday.

“Our valued taxpayers have been financially affected due to global outbreak of COVID-19. Considering it and other factors and also as a gift of the ‘Mujib Borsho’, I propose to increase tax-free income threshold and reduce the tax rate applicable for the taxpayers,” he said.

Kamal said this 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”.

BK

 

 

 

Budget 2020-21 FY: Tax-free income limit rises to Tk 3 lakh

Tax-free income ceiling has been proposed to be raised to Taka 3 lakh to give relief to low-income people and encourage more people to pay tax. I propose to increase tax-free income threshold of male taxpayers from Taka 2.50 lakh to Taka 3 lakh and tax-free income threshold of female tax payers and tax payers above 65 years of age from Taka 3 lakh to Taka 3.50 lakh respectively, said finance minister A H M Mustafa Kamal while placing the national budget for fiscal year 2020-21 at the Jatiya Sangsad on Thursday. Our valued taxpayers have been financially affected due to global outbreak of COVID-19. Considering it and other factors and also as a gift of the Mujib Borsho, I propose to increase tax-free income threshold and reduce the tax rate applicable for the taxpayers, he said. Kamal said this 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. BK