Long-Term Tax Roadmap Under Consideration; Tax-Free Income Limit May Increase

PNN News Desk

The government is moving toward introducing a long-term income tax roadmap to make the tax system more stable, transparent, and predictable. A multi-year plan may be announced in the upcoming national budget.

Sources say the current tax-free income threshold of 350,000 taka may gradually increase in phases, potentially reaching 450,000 taka by the 2030–31 fiscal year.

Policy makers believe this will reduce uncertainty for taxpayers and help individuals and businesses plan their finances more effectively.

Under the proposed plan, the tax-free threshold may be raised to 375,000 taka in 2027–28, 400,000 taka in 2028–29, and gradually increased further in subsequent years.

However, some economists argue that the increase should be implemented more quickly due to rising living costs and inflation.

Discussions are also ongoing about maintaining the existing surcharge system for high-net-worth individuals instead of introducing a separate wealth tax.

Changes are also expected in withholding tax adjustments, allowing taxpayers to reconcile advance tax payments with actual annual liabilities.

Experts say that if implemented properly, the roadmap could be a major reform in the country’s tax system.