Tax-free income limit to increase to Tk3.5 lakh

Budget 2023-24

Dhaka, June 1 -Finance Minister AHM Mustafa Kamal in his budget speech on Thursday proposed to increase the tax-free income limit to Tk 3.5 lakh from the existing Tk 3 lakh for individual taxpayers for the fiscal year 2023-24.

He also proposed the threshold for women and senior citizens above 65 years of age to Tk 4 lakh from Tk 3.5 lakh.

Besides, proposals have been placed for the physically challenged persons and third-gender taxpayers to extend their tax-free income limit to Tk 4.75 lakh from Tk 4.5 lakh and Tk 3.5 lakh respectively.

The tax-free income ceiling for the war-wounded, gazetted freedom fighters will be Tk 5 lakh, up from Tk 4.75 lakh.

The proposed tax rates and tax slabs for all categories of individual taxpayers except companies and local authorities are: no tax on first Tk 3.5 lakh, 5 percent tax on next Tk 1 lakh; 10 percent on next Tk 3 lakh; 15 percent on next Tk 4 lakh; 20 percent on next Tk 5 lakh and 25 percent income tax on the balance of total income. - UNB