The government is set to introduce several changes to the proposed national budget for fiscal year 2026-27 before its passage on June 30, including a reduction in corporate tax, withdrawal of the mandatory e-TIN requirement for opening bank accounts, and an increase in the tax-free income threshold.

According to National Board of Revenue (NBR) sources, corporate tax may be reduced by 2.5 percentage points for eligible companies under certain conditions for the next five fiscal years. The move aims to encourage investment, attract foreign investors, boost industrial production, create jobs, and improve the tax-to-GDP ratio.

The government is also considering raising the tax-free income ceiling to Tk 400,000 from the current Tk 375,000, taking inflation into account.

In another major change, the proposed requirement to submit an e-TIN certificate for opening a bank account is likely to be withdrawn following feedback from stakeholders.

The final budget may also reduce the capital gains tax on gold sales to 5% from the proposed 15% for individual taxpayers. Additionally, the tax rate for private universities and similar educational institutions may be cut to 5% from 10%.

The government is also expected to back away from its proposal to impose VAT at the retail level after widespread criticism. The revised budget is scheduled to be passed by Parliament on June 30.