Kamal proposes raising tax-free income ceiling to Tk 350,000

The tax-free income limit has been recommended increasing to Tk 350, 000 from the existing Tk 300,000 for individual taxpayers for the next fiscal year (FY24).  

Finance minister AHM Mustafa Kamal in his budget speech also proposed to increase the tax-free income threshold for women and senior citizens above 65 years of age to Tk 400,000 from Tk 350,000.

Besides, proposals have been placed for the physically challenged persons and third gender taxpayers to extend their tax-free income limit to Tk 475,000, which earlier were Tk 450,000 and Tk 350,000 respectively. The tax-free income ceiling for the war-wounded gazette freedom fighters will be Tk 500,000, up from Tk 475,000.

The proposed tax rates and tax slabs for all categories of individual taxpayers except companies and local authorities are: no tax on first Tk 350,000, 5 per cent tax on next Tk 100,000; 10 per cent on next Tk 300,000; 15 per cent on next Tk 400,000; 20 per cent on next Tk 500,000 and 25 per cent income tax on the balance of total income.

Earlier, the government had increased the tax-free income Tk 300,000 back in fiscal year (2020-21).