Budget snippets

Tax-free income limit to go up 

Individual taxpayers will see their tax-free income limit go up to Tk 375,000 from the fiscal year 2026-27. However, the rates in the corresponding slabs will be higher. And for the assessment year 2025-26, the tax-exempted threshold has been kept at Tk 350,000 of annual income.

Minimum tax for newbies is Tk 1,000

Individuals who will file a tax return for the first time in the assessment year 2025-26 will get a discount in the payment of minimum tax. New taxpayers will pay Tk 1,000 tax if their annual taxable income falls below Tk 450,000. Minimum tax for regular taxpayers will be Tk 3,000-Tk 5,000, depending on the area.

Agri income up to Tk 5 lakh tax-free

In order to encourage farming and meet the growing demand for food for an increasing population, the interim government has kept up to Tk 500,000 annual income from agricultural activities tax-free. The benefit will be available from the fiscal year 2025-26.

No surcharge on electric cars 

A taxpayer having more than one car has to pay an environmental surcharge for the second car. From the fiscal year 2025-26, the surcharge will not be applicable for owners who possess electric vehicles.

Duty-free import of cereals, vital drugs to stay

The government is going to continue allowing duty-free import of essential foods, agricultural inputs, and life-saving drugs for the next fiscal year. Imports of fertiliser, seed, and cotton will also get zero-duty benefit next year.

July Warriors' tax-free limit Tk 5.25 lakh from FY27

The government has introduced a new category, July Warriors, under personal income tax and offers tax relief on incomes up to Tk 525,000 for two years, beginning from the 2026–27 fiscal year. The tax-free income limit for war-wounded freedom fighters has been increased to Tk 525,000 from FY27 from Tk 500,000 at present.

Advance tax on industrial raw materials cut 

The government has cut advance tax, a kind of value-added tax, to 2 percent from FY26 on the import of raw materials by manufacturers. However, commercial importers will face 2.5 percent to 7.5 percent.