FE Report

The government has raised the tax-free income ceiling for disabled person to Tk 200,000 (two lakh) in an effort to ease tax burden on the deprived section of the society.

The finance minister has made the change in the amended budget that was passed Tuesday in parliament.

The government has also waived the provision of special tax threshold for women and senior citizens.

Women and senior citizens, up to 65 years of age, will have to pay tax in the existing ceiling of Tk 165,000, which was Tk 180,000 in the just concluded fiscal. However, age limit of senior citizen was also reduced to 65 years from 70 years of age.

Senior citizens above 65 years will be exempted from payment of income tax from the current fiscal.

The National Board of Revenue (NBR) has ignored requests from a cross section of people on raising the tax exemption ceiling for the new fiscal.

"A number of marginal taxpayers will be dropped out if we raise the tax exemption ceiling for individual taxpayers," said a top tax official.

Finance minister has directed the NBR to give more focus on income tax collection in 2009-2010 fiscal, he said adding that the government did not bring any change in the tax exemption threshold due to this reason.

"We will also concentrate on ensuring proper tax collection from large taxpayers. Investment ceiling for large taxpayers also doubled in the amended budget for increasing tax collection from them," he said.

Individual taxpayers have to invest Tk 1.0 million to get 10 per cent tax rebate, which was Tk 0.5 million in the just concluded fiscal.

Bangladesh Institute of Development Studies (BIDS) director general Mustofa Kamal Mujeri said: "The income tax department should monitor the income statement to check tax evasion."

Tax administration will have to improve efficiency to raise income tax collection and unearth concealment of actual income, he said.

The NBR will have to closely monitor tax statements of those taxpayers, who are paying taxes at higher slabs, as they are contributing a significant amount of money to the exchequer, he added.