The government of Bangladesh has decided to withdraw the tax exemption on income earned from investments in zero coupon bonds issued by banks, insurance companies, financial institutions, or other corporations. The exemption, previously granted under the Sixth Schedule of the Income Tax Act 2023, will no longer apply from the next fiscal year. The Finance Bill 2026 proposes the repeal of the relevant clause, as presented in the National Parliament by Finance Minister Amir Khasru Mahmud Chowdhury. The change also covers zero coupon Islamic certificates.

Alongside this measure, the 20 percent tax on company dividends has been withdrawn, and the rule requiring inclusion of such income in total taxable income for non-corporate taxpayers has been canceled. The Finance Bill 2026 also introduces a new condition for tax rebates on investments in government securities, mutual funds, and similar instruments: investors must now hold investments for the full term to retain the rebate.

Officials explained that the new condition aims to encourage long-term savings and prevent early withdrawals that undermine the purpose of tax incentives.