Tax Relief

Ladies entrepreneurs can get tax breaks

Women entrepreneurs could get tax relief on their income from companies in the coming fiscal year, an official from the Treasury Department said.

The threshold for annual turnover for minimum taxes can be up to 70 lakh for companies run by women entrepreneurs in the years 2021-22, from the current 50 lakh.

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“We do not have a separate VAT rate for businesses run by women entrepreneurs. However, we feel it is important that we provide a special incentive to encourage them,” the official said.

There is currently a separate tax-free income tax threshold for women.

“We are therefore considering introducing a separate turnover cap for minimum taxes,” said the official.

The tax-free upper income limit for female taxpayers is currently Tk 350,000 per year and the threshold can remain unchanged in the next financial year.

The move comes amid growing women’s interest in starting businesses to meet the demand of the emerging middle class in Bangladesh, stemming from the steady growth of the economy over the past three decades.

In addition, the National Board of Revenue plans to encourage companies to employ transgender people, also known as hijra, to integrate the community into the mainstream economy and reduce discrimination.

Under the plan, the government can offer a 5 percent discount on corporate tax if a company employs 100 transgender people.

The government officially recognized the community as a gender in January 2014. Still, people in this segment are not welcome in the work area.

The official expected the tax incentive would inspire businesses to employ transgender people.

However, transgender people receive an allowance from the government’s social protection systems.

The government provided Tk 46 crore in the current fiscal year to support transgender, disadvantaged and disadvantaged communities.

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