The upcoming budget for FY2023-24 is expected to include significant proposals aimed at boosting tax revenue, expanding the tax net, and reducing income disparity. Finance Minister AHM Mustafa Kamal is likely to propose raising the tax-free income limit for various categories. The limit may be increased to Tk 3.5 lakh for general individuals, Tk 4 lakh for females and senior citizens, and Tk 4.75 lakh for physically challenged individuals. In addition, the proposal includes increasing the tax-free income limit for wounded freedom fighters and members of the third gender. To encourage tax compliance, a minimum income tax of Tk 2,000 may be introduced for individuals seeking government services.
The budget also focuses on other tax-related measures. The National Board of Revenue (NBR) plans to appoint tax agents to enhance revenue collection and broaden the tax base. Furthermore, the government aims to rationalize source taxes on land registration, manganese imports, and local manufactured cables. Additionally, there may be an increase in travel taxes to discourage unnecessary overseas trips and an imposition of an environment surcharge on multiple cars to mitigate environmental pollution. The budget estimates direct tax expenditure at Tk 1,78,241 crore in FY24, with a potential inclusion in the government’s subsidy allocation. Lastly, the decision to withdraw the rebate on secondary stock market investments is likely to be reversed to stabilize the capital market.
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