3.

Tax Base Expansion:

It is proposed to impose the duty to accept TIN in the following terms:

Purchase of
savings
certificates
more than
2lacs

Cooperative Tax Base Postal saving

society's more than
registration Expansion 2lacs

Home
decorative
appoval

4. Automated payment of invoice taxes up to TK 5 Lac via an automated program.

5. Bangladesh Digital Transformation has been declared tax-free in six additional sectors, in
addition to the existing 22.
6. An automobile manufacturing company is needed to propel Bangladesh forward in the mega
industry. Those who invest at least Tk. 100 crore or more may be eligible for a 20-year tax
break.exemption. It's a way to promote 'Made in Bangladesh' in mega-industry production.

7. Household appliances such as washers, blenders, microwave ovens, and electric sewing
machines kitchen knives and gadgets, induction cookers, kitchen hoods, and machineries
the industry will be exempt from paying taxes for ten years.
8. Agribusiness owner specializing in the processing of fruits and vegetables, dairy products,
and other agricultural products.
Producers of infant food have been given
10years tax exemption.

9. Institutions that provide education and training to develop skilled human resources suitable
for industrialization may be eligible for a 10-year tax break.
10. Entrepreneurs in the light manufacturing sector have been granted a 10-year tax exemption.
11. Bangladesh is reliant on imports to create self-productivity in the IT sector.
sectors and businesses, as well as an employment incentive. As a result, closed-circuit
television (CCTV) and
manufacturers of pen drives have been granted a 10-year tax exemption.
12. It has been proposed that hospital income be exempt from taxation for a period of ten
years.Hospitals must be located outside of Dhaka, Narayanganj, Gazipur, and Rajshahi. There
must be at least a 250-bed hospital or a 200-bed specialist hospital in each of the Chittagong
districts hospitals.
13. If a company's sales revenue is less than TK 70 lacs and it is owned by a woman
entrepreneur, the company's income is exempt from income tax.
14. To establish a market for Sukuk bonds (Islamic financial certificates) that allows for easy
circulation.It is proposed that the tax on long-term capital mobilization be waived.
15. Depreciation rate deduction for building & structure:
Building Existing Rates Recommended rates
General Building 10% 5%
Factory Building 20% 10%

16. If the supply and contracting bill is not received through any banking or mobile financial
services, more than half of the existing source tax rate is deducted (MFS).
17. Exempt income from organization licenses by Micro Credit for easy access to microcredit
the establishment of a Regulatory Authority has been proposed.
 Discussions
Chapter 1: Implementation of Tax Laws in Bangladesh

To examine the execution of taxation, we must first define Bangladesh's revenue system.
Bangladesh's major tax administration authority is the National Board of Revenue (NBR). It is
overseen by the Internal Resources Division (IRD) of the Internal Revenue Service.The
Department of Finance The Chairman of the NBR is responsible for conception and continual
improvement. Examining tax policies and legislation, as well as negotiating tax treaties with
foreign nations participating in inter-ministerial discussions about fiscal issues. It's broken down
into three sections.

Value
Added
Tax

Varient Of
Tax
Revenue

Income Customs
Tax &Excise

The NBR's primary responsibility is to collect income for the government. They collect over 95%
of all taxes, or 82 percent of all government revenue. Other responsibilities include the
administration of all affairs relating to taxes and other tax-producing levies. Taxes are included
in the NBR.VAT, income tax, additional duty, and excise duty are all examples of taxes. Non-
NBR taxes, on the other hand,land revenue, non-judicial stamps, registration fees, and
motorcycle taxes are all sources of revenue. The government's tax policy in
Bangladesh is mainly pleased with the world's taxation regimes. There are two types of people:

*Direct Tax
*Indirect Tax

Direct tax: Income taxes, such as income tax and corporation tax, are examples of direct taxes.
And there are property taxes, such as a wealth tax, a gift tax, and so on. Income tax accounts
for over 98 percent of direct taxes.

Land revenue is also a source of income. The burden of direct taxation cannot be passed to
anyone.

Taxes levied in an indirect manner:

Customs duty, excise duty, value added tax, supplemental duty, and other indirect taxes are
examples.The burden of indirect taxes might be passed on others.

Import stage by customs authorities 47.6%

Value Added Tax 20.9%
Domestic production 52.37%
Supplementary Duty 1%
Turnover Tax .005%

Bangladesh's Income Tax System:

Income tax is levied on an individual's or entity's taxable income in accordance with the
legislation. It is calculated and measured in relation to an individual's overall income.

assessee for a specific period of time or, more commonly, on an annual basis

The following laws and regulations govern income taxation in Bangladesh. They really are.
as depicted in the diagram below.

1 .S ta tu to ry ru le s a n d R e g u la tio n .

2 .F in a n ce a c t p a ss e d b y th e p a rlia m e n t

3 .In co m e ta x o rd in a n c e a n d in c o m e r u le 1 9 8 4

Figure 5: Income Taxation system rules

Article 83 of the Constitution is the primary legal source of taxation in Bangladesh. To levy taxes
on the taxpayers, Parliament must pass an authorizing Act, known as the "Finance Act."
According to the Income Tax Ordinance, an income tax officer assesses a tax on the assessee.

1984.

The Deputy Commissioner of Taxes and any higher tax officer can be sued under section 44 of
the Ordinance.

allow a tax exemption based on the tactics outlined in Schedule 6. Part A of Schedule 6
contains the following information:

a list of non-assessable sources of income These earnings should be deducted from the tax
calculation.
from the entire income list Part B contains massive investment sectors once again. It was
stated,

An assessee has the option to invest.

• Income from salaries.
• Income from House Property.
• Income from Business and Profession.
• Income from other sources.
• Income of spouse or minor child.
• Interest on securities.
• Agricultural income.
• Capital Gain.
• Share of Profit in a firm
• Foreign Income.

These income categories are intended to categorize all conceivable types of income that
taxpayers may get. The money earned under the appropriate head of income must be identified
by the taxpayer.
Accounting standards applied in the jurisdiction may be utilized to determine taxable income. It

The fundamentals of tax legislation may be updated or replaced. The frequency of taxation
varies depending on the situation.

system. Some systems are progressive, while others are regressive. Tax rates may differ or be
fixed.

Income level can be a flat constant. Many systems allow people to have certain personal
allowances.

as well as some other non-business deductions from taxable income Individual income tax is
frequently imposed on individuals.

at the conclusion of the tax year, on a pay-as-you-earn basis There are two types of
adjustments.

• Payments to the government, for taxpayers who did not pay enough during the tax year.
• Tax refunds from the government for those who have overpaid.

Deductions are occasionally available in income tax systems, lowering the total tax liability by
lowering total taxable income. They may allow losses from one form of revenue to be offset
against losses from another. A loss on the stock market, for example, may be deducted from
wages taxes. Some
The loss may be separated by tax systems, allowing business losses to be deducted only from
business taxes.

by deferring the losses to a later tax year