Prime Minister and Leader of the House Tarique Rahman has proposed raising the tax-free income limit and removing the mandatory requirement of a Taxpayer Identification Number (TIN) for opening bank accounts before the proposed budget is passed.
During his closing speech on the proposed 2026-27 fiscal year budget in the National Parliament on Monday, the Prime Minister also requested the Finance Minister to reconsider proposals for reducing duties and taxes in several other sectors.
"Normally, such demands come from the opposition. For now, I want to stand by them mentally, if not physically," the Prime Minister said.
Amir Khasru Mahmud Chowdhury, the Finance Minister of the BNP-led government presented the budget proposal for the 2026-27 fiscal year in Parliament on 11 June. The annual expenditure plan of Tk 9.38 trillion (9 lakh 38 thousand crore) is expected to be passed following discussions by the Members of Parliament.
The parliamentary session began at 10:30 am today with Speaker Hafiz Uddin Ahmad in the chair. During his closing speech on the budget discussion, the Prime Minister stated that the government is working to make the tax system more transparent, modern and taxpayer-friendly.
To provide relief to taxpayers, Tarique Rahman proposed an increase in the personal income tax exemption limit. He noted that the proposed budget set the tax-free income limit at Tk 3.75 lakh for the 2026-27 and 2027-28 assessment years, Tk 4 lakh for 2028-29 and 2029-30, and Tk 4.5 lakh for 2030-31. He proposed raising these limits to Tk 4 lakh, Tk 4.5 lakh and Tk 5 lakh, respectively.
The Prime Minister also addressed the confusion and concern among the public regarding the provision for ‘voluntary disclosure of investment’ in the proposed budget.
Tarique Rahman explained that the provision was introduced to reduce complications for taxpayers, as land is often not registered at its actual market value. However, he noted that many view this as an opportunity to legalise undisclosed income. Consequently, he urged the Finance Minister to withdraw this proposed provision.
Furthermore, the head of government requested the withdrawal of the proposal that would have made TIN certificates mandatory for opening bank accounts, registering deed of distribution and property mutation. He acknowledged that these measures, aimed at expanding the tax net, were also causing public confusion.
Tarique Rahman proposed reducing the current 10 per cent tax on private universities to 5 per cent. However, he attached several conditions to this tax benefit, stating that universities must increase investment in research, expand language education and establish language laboratories and expand tuition-free opportunities for poor and meritorious students.
The Prime Minister also proposed expanding tax benefits for ethnic minority groups in both the hill tracts and the plains. He recommended that, in addition to existing tax exemptions for economic activities in the hill districts, the salary income of ethnic minority individuals should also be made tax-free.
To promote the shrimp industry and boost exports, the Prime Minister suggested withdrawing duties and VAT on the import of feed additives, probiotics, vitamins, minerals and necessary machinery.
Furthermore, recommending a reduction in duties on various raw materials to foster local industry, the Prime Minister said that the 10 per cent supplementary duty on the import of honey used in the pharmaceutical and manufacturing industries should be withdrawn.
He also called on the Finance Minister to either reduce or withdraw the proposed duties on industrial raw materials such as PET resin, PVC, cold-rolled sheets and oxides of rolled products.
