The government may introduce a flat BDT 5,000 minimum tax for individuals in FY 2025-26, with new taxpayers paying a discounted BDT 1,000 to boost compliance.

Bangladesh may raise the minimum income tax for individuals to BDT 5,000 in the FY 2025- 26 budget, scrapping the current tiered rates (BDT 3,000–BDT 5,000).

However, new taxpayers could pay only BDT 1,000 to encourage compliance.

The National Board of Revenue (NBR) says the change aims to curb tax evasion while bringing more people into the tax net.

Currently, only about 45 lakh of 1.15 crore TIN holders file returns, with many declaring zero income.

Earlier, Bangladesh’s interim government advisory council approved the 2025-26 national budget on 2 June 2025.