Tax-free income limit up to Tk 3 lakh

Finance Minister AHM Mustafa Kamal on Thursday proposed tax-free income threshold up to Tk 3 lakh raising from Tk 2.50 lakh.

He made the proposal while placing the proposed national budget for 2020-21 fiscal year in the parliament this afternoon. 

The budget is the second of current Awami League-led government, and country's 49th since the country's Independence 1971.

Finance Minister said, "This year taxpayers have been financially affected by the coronavirus pandemic. Considering this, I am proposing somewhat increase of tax-free income's limit."

After limit Tk 3 lakh, as per the proposal, a taxpayer will have to pay 5 percent tax against Tk 1 lakh, 10pc against Tk 3 lakh, 15pc against Tk 4 lakh, 20pc against Tk 5 lakh, and 25pc against above those amounts.