Bangladesh Tax Management
Bangladesh Tax Management
Bangladesh Tax Management
-F*',*
P i&em.
h
n"
W
"' .ti',fl#s$l*'
"dg1}Iwk"."
.;1fl
!r ir 1:t1{il:1 t"
I
6r "ud#:
&r
ffii , .*ffi
,S
PRESENTATION OUTLINES
lntroduction
Principles of good tax system
Cannons of Taxation
Direct tax Vs. lndirect tax
Legacy of lncome Tax law
Bangladesh tax structure
Present tax rate
Reduced tax rate with SRO reference
Tax reforms
t0lsl2020
Introduction
"Taxes are dues that we pay for the privileges of membership in an
organized society." 'Iax is a compulsory payment made to the
Government fbr services it provides us, though people may not be
completely satisfied or convinced with these services.
.,t: ,: 'r',"t,.1
'i, ,l.ir li',
i'{ r'''
t:, iti1. r' 'rl .rr--. : 'rt 't1.. .1 1.' - .r.1r 'rr"l
1,." .',,1',;.""
r,,.,1-
,: 'il:,rr'' t').1 "1i-1f,1"^"
'.i !1 'i
":.i
L0/sl2o2o
Canons of Taxation
tc,
Canons of Taxation
) Canon of Equity: Every person should pay to the government
depending upon his ability to pay.
) Canon of Certainty: The tax which an individual has to pay should
be certain, not arbitrary. The tax payer should know in advance how
much tax he has to pay, at what time he has to pay the tax, and in what
form the tax is to be paid to the governmen
Meaning Direct taxes are the taxes in which lndirect taxes are such type of
the incidence and imPact falls on taxes where incidence and imPact
the sa me Person,/assessee. fall on two different Persons.
Nature of tax Direct tax is progressive in nature. lndirect ta\es are regressive in
natu re.
Levy Direct tax is levied and collected lndirect tax is levied and collected
from the assessee from the consumer but Paid/
deposited to the national
exchequer by the assessee/dealer.
Shifting of Tax burden is directlY borne bY the Tax burden is shifted to the
burden assessee. Accordingly the burden subsequent/Llltimate user
cannot be shifted.
Tax collection Tax is usually collected after the At the time of sale or PUrchase or
income, for a year, is earned. rendering of services
(z)
\-/
On the 1't Tk. 3,00,000/- of total income Nit After rebate, minimum tax for individual taxpayer are:
[For woman & senior citizen threshoJd Iimit is Tk.3,50'000]
1)Tk.5,000/ in case ot Dhaka & Chittagong City
Corporation area.
On the next Tk. 1,00,000/- of total income 5%
2) Tk.4,000/ for other city corporation area.
On the next Tk. 1,00,000/- of total income 70% 3)Tk.3,000/ for other areas if total income exceeds
jt
IJ-] The threshold lim for woman a nd senior citizen ageing 65
years or a bove is Tk.3'50,000/
[2] For physically handicapped persons Tk. 4,50,000/
[3] For gazetted war-wounded freedom fighter is Tk.4'75'000.
i+i fnresnotOtirnitincaseof parentsorlegal guardianofanypersonwithdisabilitywill
be50,000takamore. lf
halh fathcr en.l mother are assessee then anv one will avail this benefit"
Net wealth exceeding Taka 3 crore but not exceeding Taka 5 crore;
or Minimum surcharge Tk.3,000 uP
Ownership of 2 motor cars to net wealth Tk.10 crore but if to%
or exceeds Tk.10 crore then Tk.5,000
Ownership of HP having an aggregate area
of 8,000 sft in a city corporation area
Net wealth exceeding Taka 5 crore but not exceeding Taka 10 crore 75%
Net wealth exceeding Taka 10 crore but not exceeding Taka 15 crore 2Ao/o
Net wealth exceeding Taka 15 crore but not exceeding Taka 20 crore 25%
t4
4
1,0/5/2020
Tax Reforms:
Some recent tax refortns are mentioned below:
(a) lntroduction of e-TlN:
Formerly each tax payer had a local registration number called GIR (General lndex
Register) number. ln 1994 nationwide unique 10 digit TIN (Tax payers ldentification
number) has been introduced. Presently electronic 12 digit TIN has been introduced
by the NBR replacing the old 10 digit TlN.
(b) Expansion of withholdinq tax:
Provisionally withholding tax was levied on salary and contractors/suppliers. To
increase the tax network it was gradually expanded. Now withholding tax is imposed
on 52 items. Major items include, contractors/supplies, importer, salary, bank deposit
etc.
(c) Simplification of tax assessment:
Universal self assessment system has been widened and expanded. At present all
categories of assessees are entitled to submit return under universal self
c aanantcrl
I"lowsveilithsie iq:b ,system of po$t audit.
{d} !&
,Ihe tystert,of return fiting has been introduced on'lsr Novembe(2016 and by
so doing ,Aif categoiles of assessee now 6an easily submit their tax return thrg
online" '
6
END OF PRHSENTATION!!
@ru