"Tax-Free Income Limit Proposal: Empowering Individual Taxpayers for Financial Growth"

 "Tax-Free Income Limit: Up to Three Lakh Taka, with Possibility of Higher Limit in Certain Cases" A proposal has been made to increase the tax-free income limit for individual taxpayers. Currently, if the annual income is up to three lakh taka, no income tax is levied on that income. This limit has been raised to three and a quarter lakh taka.

On Thursday, the Finance Minister, A.H.M. Mustafa Kamal, presented this proposal in the National Parliament as part of the budget. He mentioned that this initiative has been taken to provide some relief to ordinary taxpayers during times of high inflation.

According to the new proposal, for the first one lakh taka of income after three and a quarter lakh taka, a 5% tax rate will apply, for the next three lakh taka, a 10% tax rate will apply, for the next four lakh taka, a 15% tax rate will apply, for the next five lakh taka, a 20% tax rate will apply, and for the remaining total income, a 25% tax rate will apply.

A tax-free income limit of four lakh taka has been proposed for female taxpayers and individuals above the age of 65. In addition, taxpayers of the third gender and disabled individuals will have a tax-free income limit of five lakh taka.

The Finance Minister has also proposed that the tax-free income limit for registered freedom fighters will be five lakh taka. Furthermore, for each child or dependent of a disabled person or a parent or guardian under the influence of the law, the tax-free income limit will be increased by an additional 50,000 taka.

In addition to this, the minimum tax for taxpayers residing in the areas of Dhaka North and South City Corporations and Chittagong City Corporation will be five thousand taka, four thousand taka for taxpayers in other cities, and three thousand taka for taxpayers in areas other than city corporations.

The tax-free income limit was last increased three years ago. Now, the tax-free income limit has been raised by 50,000 taka. Written by : Robiul Hossain Forhad