Latest Income Tax Related Info

As of May 2025, Bangladesh’s income tax landscape is undergoing significant reforms. The National Board of Revenue (NBR) has been dissolved and replaced by two new divisions under the Ministry of Finance: the Revenue Policy Division and the Revenue Management Division. This restructuring aims to enhance efficiency and transparency in tax administration.

In the fiscal year 2024–25, the highest individual income tax rate remains at 25%, with plans to increase it to 30% for annual incomes exceeding Tk 1.6 million starting FY 2025–26 . Despite rising inflation, the tax-free income threshold stays at Tk 350,000, though business groups like the FBCCI and DCCI have proposed raising it to Tk 450,000 and Tk 500,000, respectively.

To streamline tax exemptions, a new policy mandates that all future exemptions require parliamentary approval, limiting discretionary waivers by ministries and capping new exemptions at five years . Additionally, the government has extended income tax holidays for renewable energy projects from 10 to 15 years, broadening eligibility beyond the Build, Own, Operate model.

These reforms align with conditions set by the International Monetary Fund (IMF) for a $4.7 billion loan program, aiming to strengthen revenue collection and fiscal discipline