Future Redesigned

Bangladesh
Key budget proposals 2017
 Personal
taxation

2 PwC
Basic tax rates and surcharge
No change proposed in the basic tax rates or non-taxable income thresholds for individual taxpayers including
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Obtaining the membership of a professional body as a dentist, engineer, architect or surveyor or any
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Any investment from an alternative investment fund recognised by the Bangladesh Security and
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 Corporate
income tax

Future Redesigned Bangladesh Key budget proposals 2017 5

Basic tax rates and surcharge
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Tax collected at source on any imported goods, permitted for set-off against the withholding tax on supply
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New withholding tax computation mechanism introduced

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in the area of creative media, public relations and media
buying agency brought under the purview of such
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computation under the minimum tax regime as per section
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Non-residents are not required to hold eTIN when
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Software or application customisation
Website development
IT process outsourcing
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Software test lab services
Overseas medical transcription
Robotics process outsourcing
Cyber security services

6 PwC
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payment of salary of BDT 16,000 or more;
payment to agency or distributorship;
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Scope of income for a shipping company widened to include demurrage, handling charges or any other amount of
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Future Redesigned Bangladesh Key budget proposals 2017 7

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No withholding tax on payment for purchase of direct materials that constitute the cost of sales or the cost of goods
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Cap on cost for depreciation waived for buses or minibuses providing transportation services to students and
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Any investment from an alternative investment fund recognised by the Bangladesh Security and
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Appeal against the order of the Deputy Commissioner of Taxes and Inspecting Joint Commissioner under
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Indirect tax

Future Redesigned Bangladesh Key budget proposals 2017 9

Change in tax rates under the VAT &
Supplementary Duty Act, 2012
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Salt Act, 1944
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Range of balance Present rate of excise duty Proposed rate of excise duty
(in BDT) (per account/ year) (in BDT) (per account/ year) (in BDT)

0-1,00,000 150 Nil

1,00,000 10,00,000 500 800

10,00,000 1,00,00,000 1,500 2,500

1,00,00,000 5,00,00,000 7,500 12,000

5,00,00,000 and above 15,000 25,000

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Present rate of excise duty per ticket Proposed rate of excise duty per ticket
Countries
(in BDT) (in BDT)

Any Asian country 1,000 2,000

Europe, USA and other countries 1,500 3,000

10 PwC
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Price xed by government Supplementary duty
Description of cigarette
(in BDT) (in %)

Local brand (low segment) 27 52

International brand (low segment) 35 55

Medium segment (all brands) 45 63

Higher segment (all brands) 70 65

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Future Redesigned Bangladesh Key budget proposals 2017 11

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Negative
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+6&RGHXVHGE\WKH,7(6VHFWRUDQGLQFUHDVHLQ9$7UDWHRQGRPHVWLFVXSSO\IURPWR
Imported SIM cards, colour televisions, footwear, motorcar tyres, detergent, paints and varnishes will be costlier
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Food items such as pasta, lasagna, burger sandwiches, hotdogs and pizza will be costlier due to the imposition of
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With the introduction of centralised registration, movement of goods and provision of services from one business
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Cross utilisation of input tax credit amongst different units of the same company with single registration is
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All registered dealers are required to upload online information of purchase and sale of every transaction valued
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Future Redesigned Bangladesh Key budget proposals 2017 13

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Transport contactors
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Natural gas
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Electricity distribution

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Data Classication: DC0
This document does not constitute professional advice. The information in this document has been obtained or derived from sources
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2017 PricewaterhouseCoopers Bangladesh Private Limited. All rights reserved. In this document, PwC refers to
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number C-123560/15, which is a subsidiary of PricewaterhouseCoopers Private Limited (PwCPL), that is a member rm of
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SUB/May2017-9734