Implement New Income Tax Law Will Shift Focus from Import Taxes

Economic Tag: Vat & Tax

Bangladesh is set to introduce a comprehensive income tax law, replacing the existing Income Tax Ordinance of 1984, after 39 years. The updated direct tax regime aims to reduce the government’s reliance on import taxes, which contribute to the higher cost of imported goods. The new law, titled “The Income Tax Law 2023,” is expected to come into effect from the upcoming fiscal year. The draft has been submitted to the Internal Resources Division for further processing and will undergo vetting before seeking approval from the cabinet and parliament. The move aligns with the conditions accompanying the International Monetary Fund (IMF) loan and demonstrates the government’s commitment to modernizing tax regulations, international standards, and attracting foreign direct investment. Various fiscal measures, such as the imposition of capital gains tax on sales of private company shares and the revision of tax-free limits, are expected to be proposed in the upcoming budget.

Source for more details:

Related News

Govt Budget Deficit Rises 73% in Seven Months

May 21, 2025

In the first seven months of FY 2024–25, Bangladesh’s budget deficit surged by 73.04% compared to the same period last year, reaching Tk 384.93 billion. Revenue collection stagnated, with tax revenue at just over 40% of the annual target, primarily from indirect taxes. Total expenditure stood at Tk 2.746 trillion against Tk 2.362 trillion in revenue.

Govt Dissolves NBR in Major Reform Move

May 14, 2025

In a major reform move, the Bangladesh government has officially dissolved the National Board of Revenue (NBR) through an ordinance, replacing it with two new divisions—Revenue Policy and Revenue Administration—under the Ministry of Finance. This restructuring, enacted late Monday night with presidential approval

NBR’s New 2% Import Tax Sparks Industry Worries

May 14, 2025

In a bid to boost revenue and reduce tax exemptions, the National Board of Revenue (NBR) is planning to impose a 2% Advance Income Tax (AIT) on around 200 previously duty-free imported items. This move is expected to generate an additional Tk2,000 crore but has drawn sharp criticism from businesses and consumer rights groups.

Parliament to Regulate All Tax Exemptions Starting FY26

May 12, 2025

Starting fiscal year 2025–26, Bangladesh’s parliament will have exclusive authority over tax exemptions, ending the finance ministry and NBR’s discretionary powers. The new "Tax Exemption Policy and Management Framework" mandates that all exemptions—including income tax, VAT, and duty—require parliamentary approval, with temporary measures needing cabinet endorsement and a one-year limit. A five-year cap will apply to all first-time exemptions, countering indefinite waivers. The policy, aligned w

Tax Evasion Hits Tk 226,236 Crore In 2023 Says CPD

April 22, 2025

In 2023, tax evasion in Bangladesh reached Tk 226,236 crore, with corporate tax evasion alone accounting for approximately Tk 113,118 crore—about 50% of the total—according to a CPD study based on 103 listed companies.

NBR Declines IMF’s Additional Tk 570B Tax Collection Target

April 9, 2025

The National Board of Revenue (NBR) of Bangladesh has declined the International Monetary Fund's (IMF) proposal to increase tax collection by an additional Tk 570 billion for the upcoming fiscal year. In a recent meeting, NBR officials conveyed that the current economic conditions are not conducive to imposing such a substantial tax burden.

Related News

Govt Budget Deficit Rises 73% in Seven Months

May 21, 2025

In the first seven months of FY 2024–25, Bangladesh’s budget deficit surged by 73.04% compared to the same period last year, reaching Tk 384.93 billion. Revenue collection stagnated, with tax revenue at just over 40% of the annual target, primarily from indirect taxes. Total expenditure stood at Tk 2.746 trillion against Tk 2.362 trillion in revenue.

Govt Dissolves NBR in Major Reform Move

May 14, 2025

In a major reform move, the Bangladesh government has officially dissolved the National Board of Revenue (NBR) through an ordinance, replacing it with two new divisions—Revenue Policy and Revenue Administration—under the Ministry of Finance. This restructuring, enacted late Monday night with presidential approval

NBR’s New 2% Import Tax Sparks Industry Worries

May 14, 2025

In a bid to boost revenue and reduce tax exemptions, the National Board of Revenue (NBR) is planning to impose a 2% Advance Income Tax (AIT) on around 200 previously duty-free imported items. This move is expected to generate an additional Tk2,000 crore but has drawn sharp criticism from businesses and consumer rights groups.

Parliament to Regulate All Tax Exemptions Starting FY26

May 12, 2025

Starting fiscal year 2025–26, Bangladesh’s parliament will have exclusive authority over tax exemptions, ending the finance ministry and NBR’s discretionary powers. The new "Tax Exemption Policy and Management Framework" mandates that all exemptions—including income tax, VAT, and duty—require parliamentary approval, with temporary measures needing cabinet endorsement and a one-year limit. A five-year cap will apply to all first-time exemptions, countering indefinite waivers. The policy, aligned w

Tax Evasion Hits Tk 226,236 Crore In 2023 Says CPD

April 22, 2025

In 2023, tax evasion in Bangladesh reached Tk 226,236 crore, with corporate tax evasion alone accounting for approximately Tk 113,118 crore—about 50% of the total—according to a CPD study based on 103 listed companies.

NBR Declines IMF’s Additional Tk 570B Tax Collection Target

April 9, 2025

The National Board of Revenue (NBR) of Bangladesh has declined the International Monetary Fund's (IMF) proposal to increase tax collection by an additional Tk 570 billion for the upcoming fiscal year. In a recent meeting, NBR officials conveyed that the current economic conditions are not conducive to imposing such a substantial tax burden.

BUSINESSMONITOR

Connect with


Dont Have Account? Please register Here