Tk 2,000 tax likely from FY24 even if income below zero-tax threshold

The scope to file tax returns without paying any tax is likely to be over from the next fiscal year as the tax authority plans to expand the tax net and collection.

As per the plan, a person will have to deposit Tk 2,000 as tax to the state exchequer if he or she claims an income that is below the threshold, which charges zero tax rate, said officials of the finance ministry.

Officials said the ceiling of the zero-tax rate for personal income may be increased to Tk 350,000 in the next fiscal year, beginning in July, from Tk 300,000 now.

Yet individuals whose income will be lower than the threshold and who will require to file tax returns as per rules are likely to be required to pay the new deposit on their incomes.

At present, registered taxpayers have to file their income, expenditure, and wealth statements and get proof of submission of returns to avail of 38 types of services. This section of registered taxpayers will need to pay the tax, according to officials.

So, the plan, if passed by the parliament, will require most registered taxpayers, now more than 85 lakh in total, to pay the minimum tax.

The idea behind the plan is to expand the tax base. In many countries such as the US, there is a practice of a token tax, said a senior official seeking anonymity.

The official said they are taking steps so that taxpayers get the refund of the excess tax payments to their bank accounts automatically.

If there is any case of suspicious claim of refunds, a tax file may come under audit, the official added.