B MirrorDesk: In the 2025-26 budget, the government aims to establish a standardized minimum income tax for both urban and rural taxpayers to address ‘tax inequality’.Currently, the minimum income tax ranges from Tk 3,000 to Tk 5,000 based on the region, but there is a proposal to unify it at Tk 5,000 for all.

Furthermore, to alleviate the tax burden on low-income individuals impacted by inflation, an increase in the tax-free income threshold from Tk 3.5 lakh to Tk 3.75 lakh has been suggested.

Additionally, as part of the modernization of the income tax return submission process, mandatory online filing for individual taxpayers is also being considered.

According to sources from the NBR, although the minimum tax rate has remained unchanged for an extended period, efforts are being made to create fairness in the tax system by applying the same rate universally.

However, some experts express concerns regarding this initiative. Dr. Mashrur Riaz, Chairman of Policy Exchange Bangladesh, warns that a sudden increase in the minimum tax for rural taxpayers to Tk 5,000 may lead to reluctance in tax compliance, advocating for a gradual adjustment instead. Presently, individual tax rates are set between 5 to 25 percent based on income.

Historical reviews indicate that the NBR typically raises the income limit every 2-3 years without ever reducing it. This time, the limit is being increased in light of inflation, while the tax rate remains unchanged.

Although these tax policy changes offer some relief, the NBR is concerned that establishing an additional tax-free limit may push many individuals out of the tax net, adversely affecting revenue collection.

Therefore, a strategy of limited exemptions is being pursued. It is anticipated that the implementation of these changes will enhance equality and transparency within the tax system, as well as foster greater awareness and engagement among taxpayers.