The current highest income tax slab rate of 25% will remain unchanged for the tax year 2024-25 as the government has decided to reverse its plan to raise the tax rate on high-income individuals.
Finance Minister AH Mahmood Ali had initially proposed in the proposed national budget for the FY25 budget to increase the rate to 30% from the existing 25% on 6 June.
However, as the finance bill was presented before the parliament, the finance ministry decided to reverse its plans on Saturday (29 June).
Fiscal and income years coincide in Bangladesh - starting on 1 July and ending on 30 June of the following calendar year.
But, for tax purposes, income earned during this period is assessed in the subsequent fiscal year.
The National Board of Revenue (NBR) collects individual income tax under five brackets.
Meanwhile, the tax-free income threshold remains Tk3.5 lakh; rates beyond that are structured as follows: 5% on income up to Tk4.5 lakh, 10% on income up to Tk7.5 lakh, 15% on income up to Tk11.5 lakh, 20% on income up to Tk16.5 lakh and 25% on any income exceeding Tk16.5 lakh.
