Bangladesh's Finance Minister AHM Mustafa Kamal in his budget speech on Thursday (June 1, 2023) proposed to increase the tax-free income limit to Tk 3.5 lakh from the existing Tk 3 lakh for individual taxpayers for the fiscal year 2023-24.
He also proposed the threshold for women and senior citizens above 65 years of age to Tk 4 lakh from Tk 3.5 lakh.
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Besides, proposals have been placed for the physically challenged persons and third-gender taxpayers to extend their tax-free income limit to Tk 4.75 lakh from Tk 4.5 lakh and Tk 3.5 lakh respectively.
The tax-free income ceiling for the war-wounded, gazetted freedom fighters will be Tk 5 lakh, up from Tk 4.75 lakh.
The proposed tax rates and tax slabs for all categories of individual taxpayers except companies and local authorities are: no tax on first Tk 3.5 lakh, 5 percent tax on next Tk 1 lakh; 10 percent on next Tk 3 lakh; 15 percent on next Tk 4 lakh; 20 percent on next Tk 5 lakh and 25 percent income tax on the balance of total income.