Minimum income tax Tk 5,000, Tk 1,000 for first-time taxpayers

Any taxpayer who passes the non-taxable income threshold will have to pay a minimum of Tk 5,000 in income tax. However, new taxpayers will be allowed to pay a minimum of Tk 1,000.

Finance Advisor Salehuddin Ahmed presented the proposed budget for the 2025-26 fiscal year in a speech broadcast by state-run BTV on monday.

Currently, the minimum tax rate for taxpayers living in the Dhaka North, Dhaka South, and Chattogram city corporations is Tk 5,000. The amount is Tk 4,000 for other city corporations, and Tk 3,000 for non-city corporation areas.

Outside these areas, taxpayers pay a minimum tax of Tk 3,000.

The new budget proposes a Tk 5,000 minimum income tax for taxpayers in all areas.

The minimum income tax threshold for individual taxpayers has also been raised by Tk 25,000 to Tk 375,000 for the 2026-27 and 2027-28 fiscal years. In addition, a tax-free income limit has also been set for gazetted members who took part in the July Uprising and has been fixed at Tk 525,000.

The budget proposal for the upcoming fiscal year will be passed on Jun 30 after the president signs an ordinance. The new fiscal year will start Jul 1.