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Surcharge-Free Net Wealth Threshold May Increase

Economic Tag: Vat & Tax

The government of Bangladesh may increase the threshold of surcharge-free net wealth from Tk 3 crore to Tk 4 crore starting from the fiscal year 2023-24, beginning from July. The move is likely to relieve the pressure of tax on upper-middle-income individuals. The surcharge was introduced by the tax administration in 2011-12 to collect more taxes from the affluent section of society and reduce economic disparity. The NBR got Tk 600 crore in fiscal year 2020-21, slightly higher than the Tk 592 crore collected a year ago. Around 15,000 individuals paid surcharge in fiscal year 2020-21, up 7 per cent year-on-year, according to the NBR. The latest increase in the threshold is expected to be announced in the upcoming national budget to be announced by the finance minister on June 1. The tax administration restructured slabs of net wealth amount and their corresponding surcharge rates in fiscal year 2021-22, introducing a 35 per cent surcharge on individuals having net wealth of over Tk 50 crore.

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