There was no opportunity to take a good look at the various reports and opinions published in the newspapers about the newly announced national budget. But I was thinking of one thing that caught my attention. It has been proposed to keep the minimum tax-free income unchanged at Tk 3 lakh per year, even if the prices of daily necessities go up that much.
My driver, who has been studying at home since he was a child, now lives in a rented house with his wife and a newborn son. Seeing the increase in the prices of goods, yesterday I took stock of your household expenses. I found it almost impossible to cover even the bare minimum of food expenses on his salary, excluding house rent, necessary medical and travel expenses for his wife and child. Based on that calculation, I immediately increased his salary. The problem is that now that he has entered the income tax, he is not getting into his head. I have no idea about the income tax of the poor, except to file my income tax return at the attorney's office.
Interestingly, elsewhere in the budget proposal, it has been proposed to increase the total tax-free amount of the allowances from Tk 5 lakh to Tk 10 lakh for additional travel, medical treatment, entertainment, etc.
I'm thinking of telling my driver how he can get a letter from my appointment to get advice from an income tax attorney so he can stay out of the income tax range by showing all those tax-free deductions.
It is a bit ridiculous to put millions of upper middle class and upper class people under paper taxes without any effective measures to prevent tax evasion. To determine the income tax rate, it is first necessary to separate the tax rate down to zero and the minimum amount of income that will be covered by income tax.
Taken from Professor Wahiduddin Mahmud's Facebook page.