Four sectors come under tax deduction at sources

New four sectors – hotel, resort, community center and transport agency whose annual turnover is more than Tk1 crore – have been proposed for source tax deduction. 

Currently, source taxes are deducted in 16 sectors.

Service providers with annual business less than Tk25 lakh pay 10% source tax, while the rate is 12% if business is more than Tk25 lakh. Such ventures are levied with 50% more source tax if they do not have a TIN.     

In the proposed budget, return submission documents will replace the TIN, while the default will meet with 50% source tax. Besides, if the bills are not collected through the banking channels, there will be provision for 50% more source tax. 

Finance Minister AHM Mustafa Kamal has placed Tk6,78,064 crore national budget for FY23 at Jatiya Sangsad according top priority to safeguarding marginal people from inflation fuelled by the Russia-Ukraine conflict.

This is the fourth budget of the third consecutive term of the government led by Prime Minister Sheikh Hasina and also the overall 51st budget of the country.

The proposed budget is Tk74,383 crore higher than the original budget size of the FY2021-22 fiscal year, which was Tk6,03,681 crore.