In the coming fiscal year, tax relocation due to investment is expected to decrease for the middle-income group of people of Bangladesh.
Currently, only a maximum of 25%
can be invested.
For the coming fiscal year, the
Finance Bill-2022 proposes a reduction in the amount of investment that is
eligible for a tax credit to 20%. It also increased the income tax rate as well
as the ranges of qualified investments.
Currently, an individual taxpayer
with a yearly income of up to Tk 1.5 million is eligible for a 15% tax credit
on a qualifying investment amount of up to 25% of total income.
For anyone with an income of up
to Tk 1.5 million, the tax credit ratio would remain constant, whereas those
higher earnings will advantage from the policy.
In the upcoming financial year,
the tax refund rate for individuals with annual incomes over Tk 1.5 million
would be increased from 10% to 15%.
