Changes likely in wealth surcharge in FY22

Sohel Hossain Patwary

23 May, 2021 12:00 AM printer

The government is likely to bring changes in surcharge on net assets of the wealthy people in the next budget for 2021-22 fiscal.

Wealth tax law 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. This provision of surcharge has been in force for the last few years.

According to sources at the Finance Ministry and National Board of Revenue (NBR), the government will reduce the number of surcharge slabs to five from the existing seven. No surcharge will be imposed on the net wealth of up to Tk 3 crore.

In the next budget, the government may impose 10 percent surcharge on the income tax of individuals having a net wealth of Tk 3-10 crore. Surcharge will be imposed at a rate of 20 percent on the income tax of assets worth Tk 10-20 crore, 30 percent on the income tax of assets worth Tk 20-50 crore and 35 percent on the income tax of individuals with net assets worth Tk 50 crore or more. 

Currently, wealthy people have to pay surcharge in seven slabs. Tk 3 crore net asset holders do not have to pay surcharge on their income.

Individual tax payer having a net wealth of Tk 3-5 crore pay minimum Tk 3,000 surcharge or 10 percent of their income tax. Net wealth holders of above Tk 5-10 crore pay 15 percent, above Tk 10-15 crore holders pay 20 percent, Tk 16-20 crore asset holders have to pay 25 percent, above Tk 20 crore net wealth holders 30 percent.