B Mirror Report: The government is set to increase the tax-free income threshold for individual taxpayers from Tk 350,000 to Tk 375,000 in the proposed budget for FY2026-27, while also announcing Bangladesh’s first-ever five-year income tax roadmap.
According to National Board of Revenue (NBR) sources, the tax-free income limit will remain at Tk 375,000 for FY2026-27 and FY2027-28, rise to Tk 400,000 for the next two tax years, and reach Tk 450,000 in FY2030-31.
The roadmap also proposes gradual increases in tax-free income limits for women, senior citizens, persons with disabilities, third-gender taxpayers, and gazetted war-wounded freedom fighters.
In addition, parents or legal guardians of persons with disabilities will be allowed an extra Tk 50,000 tax exemption for each dependent.
The proposed plan outlines income tax rates through FY2030-31, retaining the progressive tax structure while introducing higher tax burdens for top earners. From FY2028-29, annual incomes above Tk 30 million would be subject to a maximum 35 percent tax rate.
Officials say the measures aim to provide relief to low- and middle-income taxpayers, enhance predictability in the tax system, and increase revenue collection from higher-income groups. The proposals are expected to be announced formally in the national budget on Thursday.
