Business owners get relieved from paying taxes on WPPF

TBS Report

29 June, 2022, 07:30 pm

Last modified: 29 June, 2022, 08:28 pm

Illustration: TBS

The government has decided to backtrack from its original budget proposal to make corporate contributions to workers' profit participation fund (WPPF) taxable, according to Parliament sources.

The development comes as entrepreneurs protested the decision claiming it will create more tax burden on business owners.

The move to impose a tax on WPPF would have a huge financial impact on businesses that comply with the country's labour laws. Businessmen requested the government to discard the plan.

The information was disclosed during a final discussion on the budget in the Parliament today (29 June), where sources said the final proposal in this regard will pass tomorrow.

Earlier on 9 June, Finance Minister Mustafa Kamal said business owners would have to pay taxes from a portion of their profit.

The proposal was made per Labour Act 2006 and was recommended by the National Board of Revenue (NBR).

Finance Minister AHM Mustafa Kamal placed the Tk6,78,064 crore national budget for FY23 at Jatiya Sangsad on 9 June. The proposed budget is Tk74,383 crore higher than the original budget size for the FY2021-22 fiscal year, which was Tk6,03,681 crore.

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