Bangladesh’s Internal Resources Division under the Finance Ministry has issued a notification exempting gross receipts of up to Tk2 crore from turnover tax for most sectors. The notification, issued by acting IRD secretary and acting NBR chairman Ahsan Habib by order of the President, was published as a gazette on Monday.

The revised rates exclude manufacturers of cigarettes, bidis, chewing tobacco, smokeless tobacco, gul and other tobacco products, as well as carbonated beverage and sweetened drink producers, mobile phone operators and NTTN. For other sectors, gross receipts above Tk2 crore and up to Tk4 crore will face a minimum turnover tax rate of 0.5 percent.

Businesses with gross receipts above Tk4 crore will pay turnover tax at 1 percent. The Finance Act, 2026 had previously set the turnover tax rate at 1 percent, raising concerns of a substantial tax burden. The government has therefore moved away from its earlier position. Turnover tax is charged on a business’s total annual sales or transactions and must be paid even when there is no profit.