B Mirror Report:  The government is set to propose a series of tax incentives and reforms in the national budget for fiscal year 2026-27, aimed at encouraging investment, supporting businesses and expanding the country’s tax base.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to place the budget in Parliament on June 11, with more than a dozen tax measures under consideration.

Under the proposals, companies involved in solar power generation and supply may receive a full income-tax exemption on earnings until June 2035. Consumers using solar energy could also enjoy a tax rebate equivalent to 5 percent of their electricity bills.

The budget is also expected to reduce advance tax on electric vehicles (EVs) and provide a 10-year tax holiday for investors producing edible oil from locally sourced oilseeds.

To support entrepreneurs, SME owners may enjoy tax-free income on annual turnover of up to Tk 5 million, while the threshold could be raised to Tk 7 million for women entrepreneurs and persons with disabilities. Start-ups and technology-based businesses are also likely to receive a nine-year exemption from turnover tax.

As part of efforts to widen the tax net, obtaining a Taxpayer Identification Number (TIN) may become mandatory for opening bank accounts, although student and certain special accounts would remain exempt. Motorcycle owners with engine capacities of 150cc and above may also be required to have a TIN for vehicle registration.

The government is expected to launch a major data integration initiative linking taxpayer information from the National Board of Revenue (NBR), banks, the Election Commission and other institutions to improve tax compliance.

Several measures aimed at simplifying tax administration are also under consideration, including digital corporate tax return filing, mobile-based tax submissions and incentives for early filing.

The budget may further reduce source tax rates on around 60 essential commodities, including rice, wheat, sugar, fish, poultry, onions, edible oil and oilseeds, while lowering taxes on sectors such as power, exports, fuel, mobile phones and telecommunications.

Officials say the proposed measures are designed to boost investment, encourage innovation and strengthen revenue collection while making tax compliance easier for businesses and individuals.