Minimum tax may rise to Tk5,000 for individuals, Tk1,000 for new filers
Govt plans a discount for new TIN holders to encourage more people to submit returns
The government is considering raising the minimum income tax for individual taxpayers to Tk5,000 in the upcoming FY26 budget, up from the current three-tier range of Tk3,000 to Tk5,000, depending on location.
However, new TIN (Taxpayer Identification Number) holders may be allowed to pay a reduced minimum tax of Tk1,000 to encourage tax compliance.
According to sources at the National Board of Revenue (NBR), the revised minimum tax rates could be announced when the FY2025-26 budget ordinance is unveiled in early June.
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An NBR official, speaking on condition of anonymity, told TBS that many individuals underreport taxable income to take advantage of the minimum tax threshold.
"To address this, we are revising the minimum tax structure. However, we also plan to offer tax relief to new filers to encourage more people to submit returns," he said.
Currently, minimum tax rates vary by region: Tk5,000 for residents of Dhaka North, Dhaka South, and Chattogram City Corporations; Tk4,000 for other city corporation areas; Tk3,000 for all other regions.
If a taxpayer's calculated tax falls below the minimum threshold, they must still pay the applicable minimum amount — unless their return qualifies as zero return (i.e., no taxable income).
For example, a TIN holder from Lakshmipur with a taxable income resulting in Tk700 tax must now pay Tk3,000. Under the proposed change, this would rise to Tk5,000.
Bangladesh currently has over 1.15 crore TIN holders, but only about 45 lakh submit returns annually. Of those, nearly two-thirds file zero returns, according to NBR Chairman Abdur Rahman Khan.
