Dhaka, Bangladesh (BBN)-The Bangladesh government kept the tax-free income ceiling for individual taxpayers unchanged at BDT 2.5 lakh in the fiscal 2018-19.
Finance Minister AMA Muhith disclosed it when he was placing the over BDT 4.64 trillion national budget for the FY 19 at the National Parliament in Dhaka on Thursday.
“General tax exemption threshold for this year was Taka 2 lakh 50 thousand. The threshold was higher for female and other special classes of taxpayers,” said the finance minister while addressing his national budget speech.
“There is always much discussion on what should be the ideal tax exemption threshold. In developed countries, tax exemption threshold is generally less than 25 percent of per capita GDP, and in developing countries it is mostly equal to per capita GDP. In Bangladesh, tax exemption threshold is almost 200 percent of per capita GDP. That means our tax exemption threshold is high in global comparison. Moreover, the increase of tax exemption threshold puts a significant number of taxpayers out of the tax net, said the minister.
“Considering all these, I propose that the tax exemption threshold and tax rate remain unchanged for the next year except that the thresold for a parent or guardian of a person with disability will be higher by Taka 50 thousand for each of such child or dependent.”