Finance Minister AHM Mustafa Kamal today proposed a deduction of tax rate from 10% to 7.5% for resident contractors providing certain services to non-resident contractors.
The proposal was made in line with the government endorsed principle to gradually expand the tax base on one hand, while reducing the rate of taxes on the other, according to the minister who placed the budget proposal for the Fiscal Year 2021-22 in the parliament on Thursday.
The minister suggested adding a provision to section 52Q of the Income Tax 1984, Ordinance Number XXXVI.
He also proposed not making any deduction at source tax on payment up to Tk25,000 made from worker's participation fund to workers who have no taxable income. This provision was aimed at boosting workers' welfare.