Prime Minister Tarique Rahman announced a proposal to raise the personal income tax-free limit to 400,000 taka as part of the 2026–27 national budget. Speaking in parliament on Monday, he said the government aims to make the tax system more transparent and modern. The proposal includes gradual increases in the exemption threshold over several fiscal years, reaching 450,000 taka in 2028–29 and 2029–30, and 500,000 taka in 2030–31.

The prime minister noted that the government intends to ease the tax burden on individual taxpayers and provide some relief. He also mentioned that while such demands usually come from the opposition, he expressed a willingness to engage with them in spirit. The proposal was presented as part of broader budgetary measures, including a reduction in value-added tax (VAT) on certain items.

The announcement reflects the government’s stated goal of reforming the tax system to enhance fairness and efficiency, with the finance minister expected to consider the proposed adjustments in the upcoming fiscal framework.