Prime Minister Proposes Raising Tax-Free Income Threshold to Tk 400,000

Prime Minister Tarique Rahman has proposed increasing Bangladesh’s tax-free income threshold to Tk 400,000 for the next two fiscal years, offering greater tax relief to individual taxpayers.

The proposal comes after the national budget initially set the tax-free income limit at Tk 375,000. If approved, taxpayers will be able to earn an additional Tk 25,000 tax-free.

The Prime Minister made the proposal while addressing Parliament on the day the Finance Bill was passed.

He said the government aims to build a revenue ecosystem in which citizens willingly pay taxes and take pride in contributing to the country's development.

"In the proposed budget, the tax-free income threshold for individual taxpayers has been set at Tk 375,000 for the 2026–27 and 2027–28 tax years, Tk 400,000 for the 2028–29 and 2029–30 tax years, and Tk 450,000 for the 2030–31 tax year," he told Parliament.

To provide additional relief to taxpayers, the Prime Minister requested the Finance and Planning Minister to further raise the exemption thresholds.

He proposed increasing the tax-free income limit to Tk 400,000 for the 2026–27 and 2027–28 tax years, Tk 450,000 for the 2028–29 and 2029–30 tax years, and Tk 500,000 for the 2030–31 tax year.

The proposal is intended to ease the tax burden on individuals while encouraging greater public participation in the country's revenue system and economic development.