Bangladesh will reduce the rate of tax at source for readymade garment exporters to 0.60 per cent from the proposed 1.50 per cent.The tax rate for jute product exporters may also be set at 0.60 per cent, considering the prospects of the industry. The finance bill 2016 is also set to bring a relief for individual taxpayers as it may raise the income tax rebate on investment in some specific sectors by individuals to 25 per cent from the proposed 20 per cent for the upcoming financial year ’16-’17.

There may also be a reduction in the amount of value added tax to be paid by VAT payers for legal action against assessment of revenue authorities during filing of appeals.

With the FY ’17 Budget, the proposal is that VAT payers have to deposit 50 per cent of the disputed VAT or penalty before making an appeal against the assessment or decisions of field-level VAT officials. Another 50 per cent of the disputed VAT will be required in filling an appeal against the decision of the appeal commissioner.

Currently VAT payers need to pay only 10 per cent of the disputed amount at each stage of appeal.