Dhaka, Bangladesh (BBN)-Bangladesh government has taken initiative to bring the bonus and festival allowances of the civil servant under the tax net from the fiscal year 2015-16.
Finance Minister AMA Muhith made the proposal while delivering budget speech at the national parliament in Dhaka Thursday afternoon.
The government employee’s bonus and festival allowances were brought under the tax net to ensuring parity of tax on salary income, Muhith outlined.
Earlier, the bonus and festival allowances of only non-government officials were subject to the tax net.
“As per existing provision, all allowances excluding basic salary of government employees are tax free which is discriminatory,” Muhith said during his budget speech.
“As first step to remove such discrimination, I propose similar tax treatment on basic salary, bonus and festival allowance for both government and non-government salaried employees,” he added.
The minister also included that the salary of government employees will increase soon.