National Board of Revenue (NBR) is planning to increase the maximum income tax rate for high-income individuals to 35%, up from the current 30%, as part of upcoming fiscal reforms.
NBR Chairman Abdur Rahman Khan revealed the plan during a pre-budget discussion with leaders of the Economic Reporters Forum (ERF) at the NBR headquarters in Agargaon recently.
According to the proposal, the new tax rate is likely to be implemented from FY28, with a separate tax slab under consideration for super-rich taxpayers. The higher rate may apply to individuals earning above Tk 1 crore, Tk 1.5 crore, or Tk 5 crore annually, though the final threshold is yet to be determined.
“We plan to introduce this measure from the fiscal year after next and will place a proposal before the Finance Minister,” the NBR chairman said.
In addition to income tax reforms, the government is also considering increasing tobacco prices in the upcoming budget as part of efforts to boost revenue collection and discourage consumption for public health reasons.
The meeting was attended by ERF President Daulat Akhter Mala, General Secretary Abul Kashem, along with senior officials from both organizations.
The proposed tax changes signal the government’s intent to enhance revenue mobilization while introducing a more progressive tax structure targeting high-income earners.
