Essay regarding Tax Structure of Bangladesh

DUTY STRUCTURE OF BANGLADESH

Below is a stand of taxes revenue collection of Bangladesh government for the financial year 2005-06 and budget approximate for the financial year of 2006-07. Description

Price range

(2006-07)

Budget

2005-06

(Revised)

Increase/

(Decrease) in

2006-07 over

2005-06 (Tk)

Maximize /

(Decrease) in

2006-07 over

2005-06 (%)

Tax revenue:

National Board

of revenue(NBR

Portion)

Taxes about income

and profit

8500

6960

1540

22%

Useful

Tax(VAT)

14729

12398

2331

19%

Transfer duty

9485

8235

1250

15%

Excise duty

185

163

22

13%

Ancillary

Duty

7701

6394

1307

20%

Various other taxes and

duty

455

306

149

49%

Subwoofer total: NBR

portion

41055

34456

6599

19%

Non- NBR

1860

1719

141

8%

TAXES STRUCTURE OF BANGLADESH

|A. Individual Duty: | |Individual Tax Framework | |Income Year 2005-2006 (Assessment 12 months 2006-2007) | |Income Slabs |Tax Rate | |On the initially Tk one particular, 20, 500 of total income |Nil | |On the next Tk 2, 60, 000 of total salary |10% | |On the next Tk 3, 00, 1000 of total income |15% | |On the next Tk 3, 50, 000 of total salary |20% | |On the balance of total income |25% | | Non-Resident analyzes |25% | |Minimum Person Tax |Tk 1, 800 | |Minimum Tax: Recruit or shareholder director of any company |Tk. 3, six hundred | |Government Authority: Nationwide Board of Revenue

|B. Corporate Tax: | |Corporate Duty | |Company |New Rate AY 2006-07 | |Publicly Traded Companies (other than Banks, Insurance & Economic Institutions): |- | |Normal Tax Price (paying Gross 10% or more) |30% | |Additional Tax if the declared dividend/bonus share is not reported or given away at least |5% on undistributed income | |15% within 6 months of the pursuing income season | | |Companies declaring dividend below 10% |40% | |Rebate @ 10% on suitable tax just in case where dividend is more than 20% |10% | |Banks, Insurances and Financial Institutions: |- | |Corporate Tax |45% | |Excess Profit Taxes (additional)-for banking companies only |15% (on excess...