The government of Bangladesh has revoked a 15% gain tax on capital gains or profits from land sales, initially imposed under the new income tax law. The National Board of Revenue (NBR) issued a Statutory Regulatory Order on October 11, 2023, to alleviate the tax burden on individual taxpayers.
Previously, source tax on specific income sectors, including land acquisition compensation, savings certificates income, and cash incentives to exporters, was treated as a fixed tax under the old income tax law. Following criticism and pressure, the government had already reduced additional tax burdens on exporters’ cash incentives and other income sources.
However, the gazette notification did not address the source tax on land sales during registration, which remained a substantial burden. The NBR has proposed the withdrawal of this provision, expressing concerns about increased tax burdens on individual taxpayers under the new law.
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