In a bid to provide relief to individual taxpayers, the Finance Minister, AHM Mustafa Kamal, announced today that the tax-free income limit is set to rise in the next fiscal year (FY24). The proposed increase would raise the threshold from Tk 300,000 to Tk 350,000.
During his budget speech, Minister Kamal also revealed plans to raise the tax-free income threshold for women and senior citizens above 65. Under the proposal, their limit would increase to Tk 400,000, up from Tk 350,000.
The budget includes provisions to extend the tax-free income limit for individuals in specific categories. Physically challenged persons and third-gender taxpayers would see their threshold raised to Tk 475,000, compared to the previous limits of Tk 450,000 and Tk 350,000, respectively.
The tax-free income ceiling for war-wounded gazette freedom fighters will also increase. It would rise to Tk 500,000, up from Tk 475,000.
The proposal outlines the tax rates and slabs for all categories of individual taxpayers, excluding companies and local authorities.
The suggested rates include no tax on the first Tk 350,000, a 5% tax on the following Tk 100,000, 10 per cent on the subsequent Tk 300,000, 15% on the next Tk 400,000, 20 per cent on the next Tk 500,000, and finally, a 25% income tax on the remaining total income.
It’s worth noting that the government had previously raised the tax-free income to Tk 300,000 in the fiscal year 2020-21.
The proposed changes aim to alleviate the tax burden on individuals, providing them with additional financial flexibility and support in the upcoming fiscal year.
