0.1pc surcharge for wealth over Tk 50cr

Finance Minister AHM Mustafa Kamal today proposed that an individual taxpayer having a net wealth of Tk 50 crore or above shall pay higher of 0.1 per cent of net wealth or 30 per cent of his income tax payable as surcharge.

The minister said this while unveiling the national budget for fiscal year 2019-20 at the Jatiya Sangsad this afternoon.

At present, wealth tax law does not exist in Bangladesh. Instead of paying wealth tax, wealthy individual taxpayers in Bangladesh pay surcharge at certain rates based on their income tax. This provision of surcharge has been in force for the last few years.

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We have observed that a large number of wealthy people show little income in their tax returns despite possessing vast wealth. Consequently, they pay an insignificant amount of surcharge because their revealed little income, the minister said in his budget speech.

Considering this, the minister made the proposal in the budget for the next fiscal.

Currently, surcharge applies to taxpayers having net wealth above Tk. 2.25 crore. The minister also proposed to raise the limit of surcharge to Tk 3 crore.

He further proposed a minimum surcharge amounting to Tk 3,000 where net wealth of an individual exceeds Tk 3 crore and a minimum surcharge,

For individuals who have net wealth exceeding Tk 10 crore, the surcharge would amount to Tk 5,000.

In addition, 2.5 percent surcharge on the profit of the business of manufacturers of cigarette, bidi, zarda, gul and other tobacco products will remain unchanged.