Does the budget serve the rich, as usual?

On the surface, the national budget for the fiscal year 2024-25 almost looks like what it was supposed to be: contractionary, with a supposed leaning towards a progressive taxation system. 

Afterall, the government did hike the maximum rate of tax from 25% to 30%, a long-held demand. 

In reality, the government merely adjusted the maximum rate, returning to post-pandemic levels. 

In other areas, the uber rich remain completely undisturbed. 

For instance, the surcharge-free limit of wealth remains at Tk4 crore, with no changes to the rate made whatsoever, even at a time when the government plans to increase revenue collection. 

According to the National Board of Revenue (NBR), the rich have to pay a 10% surcharge if their assets are worth between Tk3cr-Tk10cr, or they have more than one car, or own over 8,000 square feet of real estate in the city area.

The surcharge rate is 20% for those whose assets worth from Tk10 crore to Tk20 crore, and 30% for those with assets worth from Tk20 crore to Tk50 crore. 

Taxpayers with assets exceeding Tk50 crore have to pay a 35% surcharge, according to the NBR.

These rates remained constant, meaning no additional burden for the wealthy. 

In terms of luxury items, there has been no change made to the carbon tax, which deals with the ownership of vehicles. 

In the last budget, taxpayers who owned multiple cars were asked to pay an additional tax ranging from Tk25,000 to Tk3.5 lakh during the registration and renewal of a second car.

In this budget, no change was brought in this particular area. 

Another area of luxury, travel tax, was also ignored this time around. The government had planned to increase travel tax last fiscal year as well, but did not do so. 

The travel tax remains stuck at Tk500 - Tk4,000. 

If some of the key luxury areas of the rich, alongside their income, is left wholly undisturbed, then where does the revenue come from? 

Perhaps that's where the middle-class and low-income earners come in.