Owners of two motor cars or residential property with a total area of eight thousand square feet in city corporations will have to pay a 10 percent surcharge on their income tax.
“I propose some small reforms by imposing surcharge on individuals who own two motor cars or house property with an aggregate area of eight thousand square feet in a city corporation,” said Finance Minister AMA Muhith said in his budget speech yesterday.
Wealthy individuals in the country pay a surcharge based on their disclosed net wealth, as the provision of surcharge has been in effect for last few years. However, experts think such provisions do not reduce inequality in the society, but place an additional burden on tenants.
“Now house owners will raise rent to pass this load to tenants. So the tenants will have to pay more house rent, whose major share of income is already allocated for it,” M Abu Eusuf, chairman of the Department of Development Studies, told The Daily Star.