B Mirror Report: The government is set to raise the tax-free income threshold for individual taxpayers to Tk375,000 for the 2026–27 and 2027–28 tax years under the upcoming national budget.
The current tax-free income ceiling for general individual taxpayers stands at Tk350,000. The proposed increase was announced by the previous interim government and is now expected to be implemented by the BNP-led government in the upcoming budget.
A senior official of the National Board of Revenue (NBR) told Dhaka Post that the move aims to reduce the tax burden on low-income earners, ensure social protection and fairness, and adjust tax policies in line with inflation.
According to NBR sources, individuals earning up to Tk375,000 annually will not have to pay income tax during the next two tax years.
Under the proposed structure, income tax will be imposed as follows:
- 10 percent on the next Tk300,000,
- 15 percent on the following Tk400,000,
- 20 percent on the next Tk500,000,
- 25 percent on the subsequent Tk2 million,
- and 30 percent on the remaining income.
In the current fiscal year, the tax-free threshold is Tk350,000, with tax rates starting at 5 percent on the next Tk100,000 and gradually increasing to a maximum of 30 percent.
The proposed budget also increases tax-free income limits for special categories of taxpayers for the 2026–27 and 2027–28 fiscal years.
The tax-free ceiling will be:
- Tk425,000 for women and taxpayers aged 65 and above,
- Tk500,000 for persons with disabilities,
- Tk525,000 for gazetted war-wounded freedom fighters,
- and Tk500,000 for third-gender taxpayers.
In the current 2025–26 fiscal year, the tax-free limits are Tk400,000 for women and senior citizens, Tk475,000 for persons with disabilities, Tk500,000 for war-wounded freedom fighters, and Tk475,000 for third-gender taxpayers.
The current budget also set a Tk525,000 tax-free income limit for officially gazetted “July Warriors” injured during the July Mass Uprising of 2024.
