Bangladesh National Budget FY 2026–27
Tax-Related Changes & Pre-Budget Discussions

The National Board of Revenue (NBR) issued an official press release inviting taxpayers, industrial and business associations, trade bodies, professional organisations, research institutions and intellectuals to submit revenue proposals for FY 2026–27. This formally opened the pre-budget consultation cycle.

• Chambers and associations requested to submit proposals to FBCCI by 15 March 2026.
• Soft copies to be emailed to NBR at [email protected].
• Non-member organisations permitted to submit proposals directly to NBR.
• NBR expressed commitment to a “participatory, pro-people, industry-friendly, and revenue-potential budget.”

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country’s apex trade body, held a major pre-budget consultative meeting at its Motijheel office with member organisations. Former NBR officials Farid Uddin and Aminur Rahman participated as budget expert committee members.

• Called for stable, predictable policy framework to sustain investor confidence.
• Proposed rationalisation of interest rates and increasing the tax-GDP ratio.
• Advocated full-scale implementation of One-Stop Service (OSS).
• Emphasised modernisation of port and logistics management.
• FBCCI Secretary General Md. Alamgir warned of global volatility complicating FY27 budget formulation.

The Centre for Policy Dialogue (CPD) published its comprehensive research paper “Recommendations for the NBR: Fiscal Year 2026–27 Budget and Beyond” authored by Khondaker Golam Moazzem, Tamim Ahmed and team. The document provided an independent technical assessment of Bangladesh’s fiscal position.

• Bangladesh’s tax-to-GDP ratio has fallen to approximately 7.3% — the lowest in South Asia and all of Asia.
• New BNP government pledged to raise the ratio to 10% in the medium term and 15% by 2035.
• Recommended discontinuing all ad hoc tax incentive provisions from FY2027.
• Urged “sunset clauses” on current exemptions and cost-benefit analysis before new provisions.
• Called for stakeholder consultation as integral to developing exemption phase-out strategy.
• Recommended revenue forgone analysis on tax exemptions to be included in the budget.

NBR Chairman Md. Abdur Rahman Khan spoke at a pre-budget discussion hosted by the Economic Reporters’ Forum (ERF) at NBR headquarters, Dhaka, unveiling several landmark proposals for FY 2026–27.

• Wealth Tax: NBR exploring reintroduction of wealth tax, abolished in 1999 (originally in force since 1963). A committee formed to address complexities of asset valuation.
• Inheritance Tax: New inheritance tax proposed, at least on a limited basis, targeting high-value property transfers.
• Higher rates for ultra-rich: Income tax rate for individuals earning over Tk 1 crore annually may be raised by approximately 5 percentage points. Khan cited global rates of 45–55%.
• Tax exemption rationalisation: Gradual shift away from blanket exemptions signalled.
• ERF proposal: ERF President Doulot Akter Mala submitted 37-point recommendations, including raising tax-free threshold to Tk 5 lakh and processing individual refunds through mobile financial services.

The NBR held a formal pre-budget consultative meeting with six prominent trade bodies including AmCham, BCCCI, IBCCI, and BWCCI at NBR headquarters. NBR Chairman announced sweeping VAT and tax administration reforms for FY 2026–27.

• 100% mandatory online VAT returns from next fiscal year for all registered businesses.
• NBR committed to eliminating need for physical visits to VAT offices — all processes to be handled digitally.
• Excess tax paid to be credited directly to taxpayer’s bank account (anti-corruption transparency measure).
• VAT network widened: registrations grew from 5 lakh to 8 lakh under new registration drives.
• Differential VAT rates for service sector under analytical study.
• BWCCI proposed raising minimum tax-free limit for women to Tk 4.5 lakh.
• AmCham President urged long-term policy consistency to build investor confidence.

AmCham Bangladesh formally presented its FY 2026–27 budget recommendations to NBR Chairman Md. Abdur Rahman Khan. The presentation was led by Reza-Ur-Rahman Mahmud, FCA, FCS (Philip Morris Bangladesh), in the presence of AmCham President Syed Ershad Ahmed and members from Citibank N.A., MetLife, HSBC, Coca-Cola Bangladesh, and Mastercard Bangladesh.

• Simplify Double Taxation Avoidance Agreement (DTAA) certification procedures.
• Introduce standardised foreign currency conversion methodology aligned with international practice.
• Establish a fully digital, time-bound tax refund mechanism.
• Reduce duties on smart cards and POS machines; introduce digital payment incentives.
• Rationalise minimum tax rates for businesses.
• Support recycling initiatives through VAT exemptions.

Bangladesh Pratidin published a detailed analytical piece confirming the trajectory of the upcoming budget and collating views of senior economists.

• Budget expected to be presented in the first week of June 2026 at the National Parliament.
• Projected budget size: approximately Tk 8,83,000 crore.
• Revenue income target: approximately Tk 6,36,000 crore; NBR portion ~Tk 5,50,000 crore.
• GDP growth target for FY27: approximately 6%.
• Dr. Fahmida Khatun (CPD Executive Director) stressed need for short-term targeted measures alongside structural reform.
• Dr. Mustafa K. Mujeri (IIFID) called for expanding the tax base, automation, and NBR accountability.
• SANEM analysis warned Middle East conflict could reduce GDP growth by up to 3%.

The Dhaka Chamber of Commerce and Industry (DCCI) held a major pre-budget consultation titled “Budget 2026–27: Private Sector Expectations” at InterContinental Dhaka, with policymakers, economists and business leaders in attendance.

• Proposed raising individual tax-free income threshold from Tk 3,75,000 to Tk 5,00,000.
• Proposed capping maximum personal income tax rate at 25%.
• Corporate tax for non-listed companies recommended at 25% (to align with listed firms).
• Proposed fully automated corporate tax return system for transparency.
• Urged integration of e-TDS platform with NBR system for faster verification.
• Called for rationalisation of interest rates and reduced government borrowing from banking sector.
• Proposed infrastructure bonds and sukuk for long-term investment.

NBR officials from all three wings (income tax, customs, VAT) presented their respective FY 2026–27 proposals to Prime Minister Tarique Rahman in a day-long meeting attended by the Finance Minister, NBR Chairman and senior officials.

• Wealth Tax: PM approved the long-discussed wealth tax proposal — replacing the existing wealth surcharge with a revised wealth tax calculated on net wealth declared in returns.
• Excise Duty: Excise duty-free bank deposit limit proposed to be raised from Tk 3 lakh to Tk 5 lakh.
• BIN requirement: Opening a bank account to require a Business Identification Number (BIN); BIN issuance to be made instant without VAT authority approval.
• Export cash incentive TDS: Proposal to raise TDS on export cash incentives from 10% to 20% under review.
• No approval was granted for proposed increases on essential food items (rice, pulses).
• PM directed that tax incentives be structured to benefit entire sectors — not single entities — and redirected from unskilled-labour to skilled and technology-based industries.

Reports emerged that the NBR is considering doubling source tax on supply of essential food commodities to meet ambitious FY27 revenue targets, covering approximately 28 product categories.

• Items targeted include: rice, wheat, potatoes, onions, garlic, lentils, chickpeas, ginger, turmeric, chili, cardamom, cinnamon, sugar, salt, fruits, rice bran, jute products.
• Existing rate: 0.50%; proposed rate: 1% (double).
• NBR estimates the move could generate over Tk 500 crore in additional annual revenue.
• Economists warned the move would aggravate inflationary pressures on households.
• Former NBR Chairman Muhammad Abdul Mazid cautioned against placing additional burden on low-income groups.
• Cold Storage Association raised concern that businesses factor TDS into final consumer prices.
• Note: As of PM’s meeting (14 May), no approval was granted for taxes on essential food items.

Prime Minister Tarique Rahman chaired a crucial all-day meeting (10am–6pm) on income tax, VAT and customs duties, finalising the broad policy direction for FY 2026–27.

• Wealth tax initiative approved — expected to generate significant revenue from high-net-worth individuals.
• VAT to be introduced on liquor produced by Carew & Company (state-owned).
• Minor tax relief measures to be announced; higher taxes likely for high-income groups.
• Tax incentives to be linked to job creation, economic contribution, and output — not sector-blind waivers.
• Tax relief to be redirected from unskilled labour-based industries towards skilled and technology-based industries.
• Government aims to collect Tk 6.04 lakh crore through NBR in FY27.

The Daily Star published a detailed analysis of the government’s revenue strategy for FY 2026–27, citing the NBR Chairman and senior officials.

• NBR revenue target of Tk 6,04,000 crore implies nearly 40% growth needed over actual FY26 collections.
• Focus on expanding income tax and VAT scope; 1.28 crore income taxpayers but fewer than 800,000 VAT payers.
• Significant legal changes to increase VAT collection under consideration.
• Single VAT rate and reduction of tax exemptions as key revenue-raising measures.
• Product tracking and tracing system to be introduced first for tobacco products (QR-code based, smartphone verifiable).
• Non-filers to be identified through automated systems; TIN holders with no taxable income to be deregistered.
• E-return system to automatically identify non-filers and issue notices.
• Selim Raihan (SANEM Executive Director) questioned the realism of the revenue target.