Kamal proposes hike on wealth surcharge

SANGSAD BHABAN, Finance Minister AHM Mustafa Kamal in his budget speech proposed that an individual taxpayer having a net worth of Tk 50 crore or above should pay more than 0.1 percent of net wealth or 30 percent of his/her income tax payable as surcharge.

We have observed that a large number of wealthy people show little income in their tax returns despite possession of huge amounts of wealth. Consequently, they pay an insignificant amount of surcharge because they reveal little income, said the finance minister.

He said currently surcharge applies to taxpayers having net wealth above Tk 2.25 crore and proposed that it be raised to Tk 3 crore.

The finance minister also proposed a minimum surcharge amounting to Tk 3,000, where net wealth of an individual exceeds Tk 3 crore and a minimum surcharge amounting to Tk 5,000 for individuals who have net wealth exceeding Tk 10 crore.

In addition, 2.5 percent surcharge on the profit of the business of the manufacturers of cigarette, bidi, zarda, gul and other tobacco products will remain unchanged, he said.

Kamal said at present, wealth tax does not exist in Bangladesh. Instead of paying wealth tax, wealthy individual taxpayers in Bangladesh pay surcharge at certain rates based on their income tax, he said, adding that this provision of surcharge has been in force for the last few years.

Source: Bangladesh Sangbad Sangstha (BSS)