The Jatiya Sangsad on Monday passed the Finance Bill 2026 with several significant amendments, including an increase in the annual tax-free income limit for individual taxpayers to Tk4 lakh.
In a major move, the government also withdrew the proposed requirement of a Taxpayer Identification Number (TIN) for opening bank accounts.
The bill was passed in a session presided over by Speaker Hafiz Uddin Ahmad. Finance Minister Amir Khasru Mahmud Chowdhury moved the bill in House, following its initial placement during the budget session on 11 June.
Before the passage of the bill, Prime Minister Tarique Rahman addressed Parliament, requesting several amendments, including the further enhancement of the tax-exempt income threshold.
While the proposed budget had initially set the limit at Tk3.75 lakh, it was raised to Tk4 lakh following the Prime Minister’s intervention. Consequently, individual taxpayers will now enjoy a tax-free limit of Tk4 lakh, up from the previous Tk3.5 lakh.
TIN requirements eased
In addition to scrapping the TIN requirement for bank accounts, the government has removed the obligation to provide a TIN for the registration, mutation, and distribution of land and flats within city corporations and municipal areas.
Controversial land registration provision scrapped
The Finance Bill 2026 also saw the withdrawal of a controversial provision aimed at bridging the gap between the actual market price and the ‘mouza’ value of land. The provision was retracted following criticism that it might facilitate the whitening of black money.
Tax cuts for education and digital sectors
The tax burden on private universities has been halved, with the rate reduced from the proposed 10 per cent to 5 per cent.
Similarly, the Value Added Tax (VAT) on digital advertisements – spanning social media, search engines, and online video services – has been slashed from 15 per cent to 5 per cent.
VAT and duty adjustments for industries
The government has restructured the VAT framework for jewellery made of gold, silver, platinum, and diamonds. A new provision has also been introduced to deduct 50 paisa as tax at source during the purchase of such ornaments.
Furthermore, VAT has been withdrawn from the supplier level for fish supply and from the revenue-sharing portions of the telecommunications regulatory body.
To support domestic industry, import duties and taxes on raw materials for several sectors – including pharmaceuticals, shrimp farming, electrical cables, PVC and PET resin, refined copper, and fire safety equipment – have been reduced or abolished.
Corporate and business regulations
The bill introduces a penalty for listed companies that distribute less than 30 per cent of their post-tax net profit as dividends. Such companies will be required to pay an additional 10 per cent tax on the shortfall.
However, banks, insurance companies, and financial institutions are exempted from this provision.
Submission of audited financial statements has been made mandatory for institutions and associations exceeding specific capital or annual sales thresholds.
Additionally, a Business Identification Number (BIN) is now compulsory for opening business bank accounts, obtaining loans, renewing trade licences, and securing utility connections such as gas and electricity.
BINs are also required for merchant accounts in mobile financial services and the registration of vehicles under a company name.
Administrative and other changes
Responsibility for collecting VAT on services received from abroad has been assigned to banks and authorised foreign exchange dealers.
Under the new regulations, taxpayers are required to file returns once every three tax terms, with separate deadlines established for government institutions, banks, and insurance companies.
The bill also clarifies that any flats, cash, or other benefits received by a landowner from a developer under a joint development agreement will be treated as capital gains and taxed accordingly.
