Individual tax-free income limit unchanged

The government is planning to keep the individual tax rate unchanged for a third straight year in the proposed national budget for the fiscal year 2022-23.

Finance Minister AHM Mustafa Kamal on Thursday placed the proposed budget with an outlay of Tk 6,78,064 crore in parliament.

“Since taking charge in 2009, the present government has constantly been pursuing a taxpayer, business and investment-friendly policy in collecting taxes to establish a strong tax culture in the country,” Kamal said.

Despite calls from various quarters to increase the tax-free income limit for individuals, the government kept unchanged the amount of Tk 3,00,000 per annum.

However, the ceiling of tax-free income has been raised by Tk 50,000 to Tk 3,50,000 for members of the transgender community to facilitate their social inclusion, Kamal also said.

“The essence of this policy is to gradually ease the tax burden by increasing investment and tax-to-GDP ratio in the economy, and also by motivating the taxpayers for better tax compliance,” he added.

The tax-free income ceiling for individual taxpayers, which was Tk 1.65 lakh in FY10, has been increased from time to time to bring it to the tune of Tk 3 lakhs in FY21.

“This ceiling has been kept unchanged in the following fiscal year. The tax-exempt income ceiling is even higher for females, senior citizens, physically challenged people, members of the third gender, and freedom fighters, who were wounded in the war,” he added.