Finance Bill passed, scrapping Tk2000 min tax

Parliament has passed the Finance Bill 2023, withdrawing the proposed mandatory minimum tax of Tk2,000 by all TIN-holders to avail 43 types of services. 

Following the budget proposal, Prime Minister Sheikh Hasina asked the finance ministry officials to scrap the proposal of the minimum tax, considering the ongoing inflationary pressure on lower-income people.

The Finance Bill 2023 was passed in Parliament on Sunday.

The bill also excluded the proposed Tk13.75 per litre specific duty on the import of 11 types of fuel oils due to concerns over potential price increases at the consumer level. 

In response to requests from several divisions, including the commerce ministry, the government has opted to maintain the previous rules, which include a 10% customs duty.

Furthermore, the existing 7.5% VAT on the collection of aluminium scrap has been withdrawn.

On 1 June, the finance minister proposed a specific duty of Tk13.75 per litre for 11 petroleum products, including kerosene, light diesel, motor spirit, and jet fuel.

The government is also likely to completely exempt the value-added tax (VAT) on ball pens, which was proposed at 15%.