Source tax on essentials halved to 1%

In the proposed national budget for the fiscal year 2024-2025, the government has given much relief to low and middle-income people by announcing a 1 per cent cut on source tax on essentials, almost halving the previous tax rate.

Finance Minister Abul Hassan Mahmood Ali presented the proposed national budget of Tk 7,97,000 crore at the Jatiya Sangsad on Thursday.

This is the 54th budget of the country.

This move comes at a time when the country’s food inflation surged into double digits in May, hitting 10.76 per cent, up from 10.22 per cent in April, according to Bangladesh Bureau of Statistics (BBS) data published last Monday.

The Bangladesh government is taking initiatives to alleviate the pressure on low-income individuals by providing essential goods through the Trading Corporation of Bangladesh (TCB) every month.

The government’s essential product selling plan primarily reaches 10 million low-income individuals at subsidised rates through the TCB every month.

However, State Minister of Commerce Ahasanul Islam Titu has also announced plans to extend these subsidised prices to middle-income individuals in the future.