Owners of two cars to pay surcharge

FT ONLINE

Finance Minister AMA Muhith recommended the policy during his presentation of the national budget for fiscal 2018-19 in parliament on Thursday.

“I propose some small reforms by imposing a surcharge on individuals who own two motor cars or house property with an aggregate area of 8,000 square feet in a city corporation,” he said.

The previously existing surcharge rates would remain unchanged, he said.

Bangladesh has levied a surcharge on persons with net wealth greater than Tk 22.5 million for the past few years.

“The surcharge on individual taxpayers plays an effective role in controlling the risk on increasing income and wealth inequality in society arising from economic development,” said Muhith.

SURCHARGE RATES

Amount of net wealth	Rate of surcharge (as percentage of income tax)
Net wealth up to Tk 2.25 million	Nil
Net wealth exceeding Tk 2.25 million but not exceeding Tk 50 million; or ownership of 2 motor cars; or ownership of house property having an aggregate area of 8,000 square feet in a city corporation	10 percent
Net wealth exceeding Tk 50 million but not exceeding Tk 100 million	15 percent
Net wealth exceeding Tk 100 million but not exceeding Tk 150 million	20 percent
Net wealth exceeding Tk 150 million but not exceeding Tk 200 million	25 percent
Net wealth exceeding Tk 200 million	30 percent

Muhith also proposed a minimum surcharge of Tk 3,000 for individuals with a net wealth greater than Tk 2.25 million and a minimum surcharge of Tk 5,000 for individuals with a net wealth exceeding Tk 100 million.

The 2.5 percent surcharge on manufacturers of cigarettes, bidis, zarda, gul and other tobacco products will also remain unchanged, Muhith said.

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