Dhaka, Bangladesh (CU)_ In an attempt to incorporate a greater portion of the marginal and disadvantaged population into the economy, the Bangladeshi government has increased the current tax incentives for employers of individuals with disabilities or from third gender groups. When Finance Minister AHM Mustafa Kamal presented the national budget for the financial year 2022-23 to the parliament, he recommended higher tax rebates for companies who employ more than 25 individuals from these categories.
During the presentation, the minister said, “I propose to amend both the existing provisions to make it such that if any employer employs 10 percent or more than 25 persons from the physically challenged or the third gender community, the employer will be entitled to get 75 percent of the salary paid to these people or 5 percent of the tax payable, whichever is less, as a tax rebate”.
The minister added, “Compared to others, these people are lagging behind in socio-economic standards, and are also left outside the mainstream of society. Social inclusion of this population can be ensured by engaging them in productive employment. To provide employment and giving better living standards and ensuring social and economic inclusion of the physically challenged and people of the third gender, I propose in this august House to further expand the existing tax incentives provided to them.”
According to the current rules, a company is eligible for a 5 percent tax rebate if minimum 10 percent of the entire workforce consists of physically challenged individuals. In addition, a company that employs 10 percent or more than 100 people of the total workforce of third gender individuals is eligible for a 75 percent tax credit on the total salary paid to such workers, or 5 percent of the tax payable, whichever is less.
In the financial year 2009-2010, the tax-free income threshold for individual taxpayers stood at Tk 165,000, and in the financial year 2020-2021, it was increased to Tk 300,000. Bangladesh increased the tax-free income threshold for the third gender community from Tk 300,000 to Tk 350,000 for the 2021-2022 financial year, while maintaining the last year’s change in general.
