Tax rebate for middle income group declines

Tax relocation on account of investment for middle-income group of people is set to decline in the upcoming fiscal year.

Currently, the investment amount is allowed up to 25 percent.

The Finance Bill-2022 has proposed a cut in the eligible amount of investment for getting tax credit to 20 percent for the next fiscal year.

It also lifted the slabs of eligible investments and the rate of tax credit.

Currently, an individual taxpayer having up to Tk 1.5 million annual income can get 15 percent tax credit on an eligible amount of investment, which is 25 percent of the total income.

The ratio of tax credit will remain the same for the income group of up to Tk 1.5 million while higher income groups of people would benefit from the measure.

The rate of tax rebate for individuals whose annual income is higher than Tk 1.5 million would be increased from the existing 10 percent to 15 percent in the upcoming fiscal year.