Prices of essentials to fall, tax-free income threshold raised

Finance Minister Amir Khasru Mahmud Chowdhury is presenting a record Tk 9.38 lakh crore national budget in the Parliament on Thursday. 

The budget includes a series of people-oriented measures aimed at reducing the cost of living and increasing disposable income for ordinary citizens. Among the most notable announcements are initiatives to lower the prices of essential commodities, including rice and lentils and to raise the tax-free income threshold.

One of the most significant benefits for middle-income earners is the proposed increase in the tax-free income limit. At present, individuals earning up to Tk 350,000 annually are exempt from income tax. The finance minister has proposed raising this threshold to Tk 375,000, allowing taxpayers to retain more of their earnings.

The tax exemption threshold will be even higher for certain groups. Female taxpayers and senior citizens aged 65 and above will enjoy a tax-free income limit of Tk 425,000 per year. 

Transgender persons and taxpayers with disabilities will not be required to pay tax on annual incomes of up to Tk 500,000.