The National Board of Revenue (NBR) is planning to increase the tax rate for high-income individuals, with a proposal under consideration to raise the existing maximum rate from 30 percent to 35 percent.
The change, if implemented, may come into effect from the 2027-28 fiscal year. NBR Chairman Abdur Rahman Khan shared this information during a pre-budget discussion with leaders of the Economic Reporters Forum (ERF) at the NBR headquarters in Agargaon on Tuesday.
Addressing the meeting, the chairman noted that income inequality and poverty have risen in the country, and increasing income tax collection is the most effective way to reduce this disparity.
He explained that while the maximum marginal income tax rate in many countries ranges from 45 to 55 percent and was as high as 60 percent in Bangladesh during the 1980s, it has been gradually reduced to the current level.
The chairman clarified that the proposed rate would not apply to all taxpayers but would specifically target high-income individuals earning more than Tk1 crore annually.
During the discussion, the NBR chief also revealed plans to increase the prices of tobacco products.
He pointed out that tobacco prices in Bangladesh are lower than in neighbouring countries and stated that initiatives would be taken to increase revenue from this sector, considering both public health and fiscal interests.
Khan emphasised the need to prevent tax evasion in the bidi sector and to rationalise its tax structure, seeking cooperation from relevant stakeholders in this regard.
He also remarked that simply increasing revenue is insufficient; government expenditure must also be managed correctly. He stressed the importance of ensuring taxpayers understand that their money is being properly spent on priority sectors.
ERF President Daulat Akter Mala, General Secretary Abul Kashem, and other senior leaders of the organisation were present at the meeting.
