B Mirror Desk : The next budget for the fiscal year 2025–2026 may raise the annual tax-free income threshold for individuals. There is a suggestion to raise the current Tk 3.5 lakh ceiling by an additional Tk 25,000, making it Tk 3.75 lakh.

On Monday afternoon, representatives from the National Board of Revenue (NBR) and the Ministry of Finance met to review the budget. Chief Advisor Professor Muhammad Yunus presided over the meeting, which took place at Jamuna’s home. Abdur Rahman Khan, the chairman of the NBR, was among the senior officials in attendance.

The administration has reportedly agreed in principle to raise the tax-free income threshold, according to sources at the meeting. In this context, the NBR has been requested to undertake the required preparations.

“Simplifying the tax payment process is being given the utmost importance in the upcoming budget,” stated the NBR Chairman. Additionally, he stated that there are plans to make the online return submission system mandatory for businesses and that it will be further promoted.

Other proposals discussed in the meeting:

Minimum tax: There is a proposal to set the minimum tax for individual taxpayers at Tk 5,000, which currently varies between Tk 3 and Tk 5,000 depending on the area.

Expansion of tax registration: Currently, an average of 4 million returns are filed annually among the 11 million TIN holders. Plans have been made to encourage the filing of returns and increase the number of taxpayers.

Turnover tax: If the turnover exceeds Tk 30 million per year, the tax rate is currently 0.6%. There is a proposal to increase this to 1%.

Tax exemption in the stock market: Along with easing the conditions for listing new companies, tax exemption is also being considered.

VAT increase: VAT on locally manufactured refrigerators and air conditioners may be increased from 7.5% to 15%. VAT on mobile phones may also be increased.