Bangladesh’s top trade organisation also recommends setting the tax-free limit to Tk 550,000 for women and the elderly.
Taking into account inflation and the real income of low-income people, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) – Bangladesh’s top trade organisation – has demanded that the tax-free income limit for individual taxpayers be increased to Tk 500,000.
At the same time, the organisation also demanded that the limit for women be increased to Tk 550,000.
FBCCI Administrator Md Abdur Rahim Khan said, “Taking into account the current inflation rate and the real income of low-income people, I recommend setting the tax-free income limit for individuals at Tk 500,000, for senior citizens and women at Tk 550,000, and setting the maximum tax rate at 25 percent.”
He also welcomed the arrangement of an inheritance tax system.
Rahim made the remarks at the 46th meeting of the National Board of Revenue-NBR Advisory Committee on the budget for the upcoming fiscal year 2026-27 on Wednesday.
The meeting was organised by the NBR and the FBCCI.
Finance Minister Amir Khosru Mahmud Chowdhury, Commerce Minister Khandaker Abdul Muktadir, NBR Chairman Md Abdur Rahman Khan and business leaders from various organisations attended the meeting.
According to the current tax system, the tax-free income limit for general taxpayers is Tk 350,000.
The limit for women taxpayers is Tk 400,000, for people with disabilities it is Tk 475,000 and for gazetted freedom fighters it is Tk 500,000.
According to the current income tax slabs, taxpayers with annual incomes between Tk 350,000 and Tk 450,000 have to pay income tax at the rate of 5 percent.
The next Tk 400,000 (total income of Tk 850,000) is taxed at 10 percent, the following Tk 500,000 (total income of Tk 1,350,000) is taxed at 15 percent, the next Tk 500,000 (total income of Tk 1,850,000) is taxed at 20 percent, and the remaining income at 25 percent.
According to the proposal in the last budget for the fiscal year 2026-27, income up to Tk 375,000 would not be taxed annually, but the following Tk 300,000 would be taxed at 10 percent.
Previously, income up to Tk 450,000 was taxed at a rate of 5 percent and the Tk 400,000 above that was taxed at a rate of 10 percent.
Tk 500,000 in income above Tk 850,000 was taxed at a rate of 15 percent. Now, income of Tk 400,000 above Tk 675,000 is taxed at the same rate.
Previously, income of Tk 500,000 above a total income of Tk 1.35 million was taxed at 20 percent. Now, that rate applies to the Tk 500,000 above Tk 1.07 million.
Currently, income above Tk 1.57 million is taxed at 25 percent, compared with the previous threshold of Tk 1.8 million.
Earlier, income above Tk 3.8 million was taxed at 30 percent, while the revised system now applies the same rate to income above Tk 3.57 million.
