Finance Act, 2024

The Finance Act, 2024 is Bangladesh's annual fiscal legislation that gives legal effect to the budgetary proposals presented in Parliament, amending rates of taxes, duties, and fees for the fiscal year. It applies to all individuals and entities liable to pay taxes, customs duties, and other government levies in Bangladesh. The Act amends various existing fiscal laws including the Income Tax Act, 2023, the Customs Act, 1969, the Value Added Tax and Supplementary Duty Act, 2012, the Excise and Salt Act, 1944, and other revenue-related statutes. Key mechanisms include the revision of income tax rates for individual and corporate taxpayers, adjustments to customs duty slabs and tariff values for imported goods, changes to VAT rates and exemptions for specific goods and services, and modifications to surcharges and regulatory duties. Notable provisions include new tax incentives for specific sectors such as green energy and information technology, increased tax exemptions for women taxpayers, adjustments to the tax threshold for individuals, and measures to broaden the tax base and improve compliance. The Act also introduces new taxes or increases rates on certain luxury goods and services, and provides for amnesty schemes or eased penalties for voluntary disclosure. As an annual enactment, the Finance Act modifies the tax landscape for the fiscal year and is currently in force for the fiscal year 2024-2025.