Individual taxpayers in Bangladesh may receive some relief in the upcoming fiscal year, as the government considers raising the annual tax-free income threshold. Currently, income up to BDT 350,000 is exempt from tax. However, in the upcoming national budget, this threshold may be increased by BDT 25,000 to BDT 50,000—raising it to between BDT 375,000 and BDT 400,000.
Sources from the National Board of Revenue (NBR) have indicated that the proposal is aimed at easing the financial pressure on ordinary taxpayers amid persistent high inflation. Interim Finance Advisor to the caretaker government, Salehuddin Ahmed, is set to present the national budget on June 2. This will be the first budget under the interim administration.
There may also be changes to the tax bracket structure. Currently, a 5% tax is levied on the first BDT 100,000 of taxable income above the tax-free threshold. This bracket could be expanded, though the rates are likely to remain the same. Presently, the progressive tax rates are 5%, 10%, 15%, 20%, and 25%.
An NBR official stated that low-income taxpayers have been under significant financial strain due to over a year of high inflation. The proposal to increase the tax-free threshold is being seriously considered to provide them with some relief.
The tax-free limit was last raised in the 2023–24 fiscal year, from BDT 300,000 to BDT 350,000. Since then, despite soaring inflation, no further adjustments have been made.
According to the Bangladesh Bureau of Statistics (BBS), average food inflation over the past year—from April 2024 to March 2025—stood at 10.44%. In July 2024, food inflation peaked at 14.10%, the highest in 13 years.
