To bring back the economy on track following coronavirus pandemic, government is going to propose a tax cut for individuals and the private sector in the next budget scheduled to be announced on June 11.
In the proposed budget the minimum income tax threshold will be proposed at Tk 300,000 from the existing Tk 250,000.
Experts told the Business Post that there will be some concession in individual income tax and corporate tax thresholds in the next budget.
An official of NBR on condition of anonymity told The Business Post the government is planning to reduce existing income tax regime in marginal individual level from 10 percent to 5 percent keeping other income tax slab intact.
According to the current income tax regime, the government realizes income tax in five categories.
If annual income remains under two and a half lac, there is no tax but once it cross government imposes 10 percent income tax which is lower in income tax category.
The highest income tax is 30 percent in the country.
Lower income taxpayers are known as marginalized taxpayers.
The government has taken a decision to reduce the rate of income tax of the marginalised group keeping other income tax slab as it remains now.
But minimum income tax in city or town areas will remain same.
There will be some changes in corporate tax rate as corporate tax will be 32 percent from the existing 35 percent for companies that are not enlisted in share market.
Corporate tax is realized in five categories and highest is 45 percent and lowest is 25 percent.
Talking to The Business Post on Tuesday an NBR official wishing not to be named said, government has a target of reducing the losses caused by coronavirus pandemic and not collecting aggressively.
Steps will be taken to widen revenue collection following different reforms in revenue sector, he said.
There will be a proposal in the budget to rebate tax for those who locally manufacturer mask, PPE and other necessary safety gear and medical instruments to counter coronavirus pandemic.
There will be no major change in value added tax (VAT) but VAT on locally produced cigarettes might be hiked from 10 percent to 15 percent.
The government is likely to discourage import of unnecessary luxury items by imposing a higher tax.
