1.)    Tax Rate:

a.)    Minimum Tax Rate

It is proposed to decrease the business turnover tax rate for individual taxpayers from 0.5%

to 0.25%.

b.)   Reduction of tax rates of the company

  c.)    One Person Company (and PC) tax rate

d.)      Taxpayer of Third gender

  1. 5% of tax payable or ;
  2. 75% of the total salary paid to third-gender employees is whichever less is.

e.)       Tax rate of Individuals

           Individual taxpayers’ income tax rates and tax rates remain unchanged as of 2020-2021.

Existing Tax Step Existing Tax rate
Up to Tk. 3 Lac. 0
On next Tk. 1 Lac. 5%
On next Tk. 3 Lac 10%
The next Tk. 4 lac 15%
The next Tk. 5 lac 20%
The rest of the money 25%

f.)          Surcharge rationalization

g.)       Rationalization of fishery income tax rate

  Existing Provision   Proposed Provision
  Amount of income Tax Rate     Amount of income Tax Rate
  On income up to the first Tk 10 lac.   0     On income up to the first Tk 10 lac.     0
  On income up to the next Tk 10 lac.   5%     On income up to the next Tk 10 lac     5%
  On the remaining income   10%       On income up to the next Tk 10 lac     10%
    On the remaining income 15%

2. Deduction at Source

a.) Rationalization of the source tax rate at the import stage

The source tax rate at the import stage has been proposed as follows:

b.) Reduction of tax rate source at the supply stage

Rank Existing provisions Proposed provisions
    1. Base value   Rate Based on value Rate
Upto Tk. 15 lacs 2% Upto Tk. 50 lacs 3%
2. Between Tk. 15 lacs – Tk. 50 lacs 3% Between Tk. Fifty lacs – Tk. 2 crore. 5%
3. Between Tk. 50 lacs- 1 core 4% More than Tk. 2 crore 7%
4. More than Tk. 1 crore 5%    

   c.) Reduction of common source tax rates

d.) Rationalization of tax rates at general sources

   e.)   Decrease in advance tax on old vessels

For those vessels that have passed ten years, the advance tax per passenger has been increased from Tk.125 to Tk 100.

3.) Expansion of tax base

a.)  It is proposed that the obligation to accept TIN be imposed in the following fields.

b.) It is proposed that e-commerce platforms be empowered as a source of tax-deductible authority.

4.) Payment of Automated Invoice Tax

Payment of taxes up to TK 5 Lac through an automated platform.

5.) Bangladesh Digital Transformation     

In addition to the existing 22 sectors in the digital transformation of Bangladesh, the following six more sectors have been declared tax-free sectors.

a.)  Cloud Service

b.)  System Integration

c.)  e-learning platform

d.)  e-book publications

e.)  Mobile applications development service and

f.)  IT Freelancing

6. Incentive to ‘Made in Bangladesh’ in mega industrial production

To take Bangladesh ahead in the mega-industry, an automobile (three-wheelers and four-wheelers) manufacturing company was established with an investment of at least Tk. 100 crore or more shall enjoy a 20-year tax exemption.

7. Incentives for Made in Bangladesh in the production of Home Appliances

Washing machines, blenders, microwaveIndustrializationsewing machines, induction cookers, kitchen hoods, and kitchen knives & kitchen appliances industry will enjoIndustrializationx exemption.

Industrialization of agricultural products

i.) Such value addition of agricultural products produced in Bangladesh throIndustrializationtion are:

a.) Fruit processing

b.) Vegetable processing

c.)  Production of dairy and dairy products, and

d.)  Baby food producers.

The entrepreneur has been given ten years of tax exemption

ii.)  Entrepreneurs manufacturing agricultural machinery have been given tax exemption for a period of 10 years.

9.) National skills developIndustrializationnt incentives

Institutions engaged in providing education and training in the following sectors to create skilled human resources suitable for industrialization shall enjoy tax exemption for a period of 10 years.

  1. Diploma Degree and Vocational Education in all fields of Agricultural Fisheries Science  and IT and
  2. Automobiles, Aircraft, Food Preservation Foot over, Glass Mining Mechanical, Shipbuilding, Leather, Refrigeration, Ceramics, Mechanist, Garments, professional training in Design, and Pattern Making, PharmacyLightsing, Integrated Medical, Radiology & Imaging Ultrasound, Dental, Animal Health & Production Services, Lighting & Garment Finishing, Poultry Farming.

1Lightight engineering entrepreneurial creation and employment incentives

Which are all kinds of products in the Lightweight engineering industry are:

i.)Will be used only in industrial factories and

ii.)There will be no complete instrument parts.

Manufacturing entrepreneurs have been given ten years of tax exemption.

11. Entrepreneurial creation and employment incentives in the IT hardware sector

In the IT sector, Bangladesh is dependent on imports for self-sufficiency in creating industries and enterprises and as an incentive for employment. CCTV and pen drive manufacturers have been given tax exemptions for ten years.

12. Ensuring affordable and decentralized medical care

 Income from hospital operation has been proposed to enjoy tax exemption for ten years provided that-

  1. The hospital must be located outside Dhaka, Narayanganj, Gazipur, and Chittagong districts and
  2. There should be at least a 250-bed hospital or 200-bed specialized hospital.

13. Incentives for Women Entrepreneurs

If the annual turnover of an SME sector owned by a woman entrepreneur is up to TK 70 lacs, the income of that company is exempted from income tax.

14. Assistance in creating a bond market for long-term capital collection

In order to create a market for easy circulation of Sukuk bonds for long-term capital mobilization, it is proposed that the applicable tax be waived in case of a re-transfer of property from the trust or SPV to the parent company.

15. Reduction of depreciation rate for building & structure

  Existing rates Recommended rate
General building 10% 5%
Factory building 20% 10%

16. Formalization of the economy

i.) The following expenses are proposed to be required to be paid through bank transfer as well as mobile financial services or MFS.

a.)Salary allowances in excess of Tk 15,000

b.)Any amount of rent and

c.)If the amount of expenditure of any other nature exceeds TK.50 000

ii.) It is proposed that an additional 50% of the existing source tax rate be deducted if the supply and contracting bill is not received through banking or mobile financial services (MFS).

17. Assistance in micro-credit collection

In order to provide easy access to microcredit, it is proposed that the Micro Credit Regulatory Authority exempt the income of organization licenses.


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