BM Desk: The Center for Policy Dialogue (CPD), a private research group, has suggested raising the yearly tax-free income threshold for individual taxpayers to four lakh taka. At the moment, a taxpayer’s tax-free income is limited to three and a half lakh taka. According to the CPD, it will rise by an additional 50,000 Taka in the fiscal year 2025–2026.

The CPD convened a news conference today, Sunday, to discuss the proposed budget for the upcoming fiscal year. The CPD’s Dhanmondi office hosted the news conference. Speakers at the occasion included Khandaker Golam Moazzem, Research Director, and CPD Executive Director Fahmida Khatun. Mostafizur Rahman, CPD Honorary Fellow, also gave a speech.

The current tax rates for individual taxpayers are 5, 10, 15, 20, and 25 percent. The first three and a half lakh taka are tax-free. Five percent will be applied to the following one lakh taka, ten percent to the next four lakh taka, fifteen percent to the next five lakh taka, twenty percent to the next five lakh taka, and twenty-five percent to the remaining amount.

In addition, the tax-free income limit for female taxpayers and those over 65 years of age is four lakh taka. The tax-free income limit for third-gender taxpayers and disabled natural person taxpayers will be five and a half lakh taka. The tax-free income limit for gazetted freedom fighter taxpayers will be five lakh taka. And the tax-free income limit for each child or pet of the parents or legal guardian of a disabled person will be another 50 thousand taka.

Furthermore, the minimum tax will be 5,000 taka for taxpayers in Dhaka North City, Dhaka South City, and Chittagong City, 4,000 taka for taxpayers in other cities, and 3,000 taka for taxpayers outside the city corporations.

There are currently 11 million tax identification number (TIN) holders, according to NBR sources. In the current fiscal year, around 4 million taxpayers have submitted returns.