The government has reversed its decision to impose a minimum tax of Tk2,000 on individuals who have no taxable income but are required to submit tax returns, according to officials from the finance ministry. The move comes after Prime Minister Sheikh Hasina instructed the finance ministry to consider the inflationary pressure faced by lower-income individuals. The decision to withdraw the proposed minimum tax is expected to be reflected in the upcoming finance bill. Initially proposed by Finance Minister AHM Mustafa Kamal, the minimum tax aimed to ensure citizen participation in government welfare work. However, the proposal received criticism from economists and business leaders as being inconsistent with taxation principles. The proposed budget has raised the tax-free threshold to Tk3.5 lakh for individuals, with varying tax rates for different income brackets. The National Board of Revenue estimates that the implementation of the minimum tax would generate additional revenue for the government.
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