Individuals below zero-tax threshold to pay Tk 2,000 for returns

In an effort to expand the tax net, the government has imposed a minimum charge of Tk 2,000 on individuals whose earnings fall below the taxable income threshold but need to file tax returns to receive a range of government services, reports bdnews24.com.

Finance Minister AHM Mustafa Kamal tabled a Tk 7.6 trillion budget proposal for the upcoming fiscal year in parliament on Thursday.

In order to facilitate the fiscal plan, the largest in the country's history, Kamal outlined plans to increase the total revenue, with an emphasis on bolstering tax collection.

The minister stressed the importance of citizen participation in the government’s welfare work by paying minimum tax in return for the 'privileges' provided by the state.

Accordingly, he proposed the minimum tax of Tk 2,000 for "competent people who are below taxable income but has obligation to submit an income tax return to take service from government".

In FY23, individuals were required to submit tax return certificates to access multiple government services. However, no fee was required for the process.

The latest initiative is geared towards increasing tax revenue by collecting a fee from those who are below the tax-free income ceiling.