Bangladesh Parliament Passes Finance Bill 2026 With Higher Tax-Free Income Threshold

Bangladesh's parliament on Monday passed the Finance Bill 2026 with 64 amendments, raising the tax-free income threshold for individual taxpayers, withdrawing a controversial investment disclosure provision, and revising several tax measures included in the national budget.

Finance Minister Amir Khosru Mahmud Chowdhury introduced the bill, which was approved by a voice vote after lawmakers rejected a proposal to send it for public review.

The amendments followed Prime Minister Tarique Rahman's request during his budget speech to revise several provisions in the FY2026–27 budget.

Higher Tax-Free Income Threshold

One of the bill's most significant changes is a gradual increase in the income tax-free threshold for individual taxpayers over the next five fiscal years.

Under the approved schedule:

The original budget had proposed lower tax-free thresholds during the same period.

Investment Disclosure Provision Withdrawn

The government also withdrew a proposal that would have allowed taxpayers to disclose investments without being questioned about the source of their funds.

The proposal had sparked widespread criticism after many viewed it as a mechanism for legitimizing undisclosed wealth.

Finance Minister Chowdhury said the provision had been designed to address practical issues related to land transactions, where properties are often registered at official mouza values rather than market prices. According to the minister, the measure was intended to protect taxpayers from future legal disputes over declared asset values.

However, the government decided to withdraw the proposal following public concerns.

The Finance Bill also removes two proposed requirements related to Taxpayer Identification Number (TIN) certificates.

Under the approved amendments:

• TIN certificates will no longer be required to open most bank accounts.
• TIN certificates will not be mandatory for registering partition deeds or completing property mutation.

The legislation introduces several tax concessions aimed at supporting education, indigenous communities, and industry.

Reducing the income tax rate for private universities from 10% to 5%.

• Expanding tax exemptions for indigenous communities to include salary income, in addition to existing exemptions on business, agriculture, and other economic activities. The measure applies to indigenous people living in both the Chattogram Hill Tracts and the plains.
• Removing customs duty, regulatory duty, supplementary duty, and VAT on imported shrimp feed, probiotics, vitamins, minerals, other essential inputs, and related machinery to support the shrimp industry.
• Reducing import duty on PVC and PET resin—important industrial raw materials—from the proposed 10% to 5%.

Before the vote, several lawmakers urged parliament to send the Finance Bill for public review, arguing that citizens and elected representatives should have greater participation in the budget process.

The proposal was rejected.

Presenting the bill, Finance Minister Chowdhury said it was necessary to implement the government's fiscal proposals and amend relevant legislation. Speaker Hafiz Uddin Ahmad then put the bill to a voice vote, and it was passed.