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Parliament on Monday passed the Finance Bill 2026 with major revisions, including an increase in the income tax-free threshold for individual taxpayers and withdrawal of several proposed provisions that had sparked public concern.
Finance Minister Amir Khosru Mahmud Chowdhury moved the bill, which was passed by voice vote.
Under the revised structure, the tax-free income threshold has been set at Tk 400,000 for FY2026-27 and FY2027-28. It will be raised to Tk 450,000 for FY2028-29 and FY2029-30, and Tk 500,000 for FY2030-31. The original proposal had set lower thresholds for the corresponding periods.
The government also withdrew a proposed provision on disclosure of investments, following public confusion. Officials said the measure had been intended to address complications arising from discrepancies between registered and market property values.
Two additional proposals that drew criticism have also been scrapped, mandatory submission of Taxpayer Identification Number (TIN) certificates for opening most bank accounts, and requirements for TIN certificates in property-related registrations such as partition deeds and mutations.
The Finance Minister said the changes were made in response to concerns raised during budget discussions, including directives from the Prime Minister.
The bill also reduces the corporate tax rate for private universities from 10% to 5%.
In addition, tax exemptions have been expanded for indigenous communities in the hill districts and plains, covering income from salary, business, agriculture and other economic activities.
To support the fisheries sector, import duties, regulatory duties, supplementary duties and VAT on shrimp feed, probiotics, vitamins, minerals and related machinery have been withdrawn.
The government has also reduced import duty on PVC and PET resin, key industrial raw materials from 10% to 5%.
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