Home
+
Published : 31 Mar 2026, 08:01 PM
The National Board of Revenue (NBR) is considering a proposal to increase the maximum personal income tax rate to 35 percent for individuals earning over Tk 10 million annually, aiming to curb economic disparity, its Chairman Abdur Rahman Khan has said.
He shared the plan during a pre-budget discussion for the 2026-27 fiscal year with the Economic Reporters Forum (ERF) at the NBR headquarters in Agargaon on Tuesday.
The proposal to hike the top tax bracket from the existing 30 percent to 35 percent was initially put forward by the ERF to address rising wealth inequality.
The NBR chief described income tax collection as the "biggest weapon" for reducing disparity.
"In other countries, the marginal individual income tax rate reaches 45, 50, or even 55 percent. In Bangladesh, it was as high as 60 percent in the 1980s," Rahman noted.
He clarified that the proposed increase would not affect the general public.
"This is specifically for 'super earners' -- those making more than Tk 10 million a year. I believe we can increase the tax rate by another 5 percent for this group starting from the 2027-28 assessment year," he said.
The chairman explained that since tax rates for the 2025-26 and 2026-27 fiscal years have already been announced to allow taxpayers to plan ahead, any new changes would only be implemented in the 2027-28 cycle.
Under the existing framework, the tax-exempt income limit stands at Tk 375,000.
The next Tk 310,000 is taxed at 10 percent, followed by 15 percent on the next Tk 400,000. The subsequent Tk 500,000 is taxed at 20 percent, and the next Tk 2,000,000 at 25 percent. Any income exceeding these limits is taxed at 30 percent.
Newspaper Owners Seek Relief
In a separate pre-budget discussion session on Tuesday morning, the Newspaper Owners' Association of Bangladesh (NOAB) urged the NBR to provide policy support for the struggling media industry.
NOAB President Matiur Rahman Chowdhury pointed out that while various industries received stimulus packages during and after the pandemic, the newspaper sector was excluded.
The association's written proposal included the withdrawal of the 3 percent import duty and 15 percent VAT on newsprint.
It also called for a reduction of advance income tax (AIT) on raw materials and the 5 percent source tax on advertisements.
Additionally, the proposal suggested cutting the corporate tax rate for newspapers from 27.5 percent to 10 percent, treating the sector as a priority or export-oriented industry.
