The National Board of Revenue (NBR) has retained the special minimum tax benefit for new taxpayers in the current 2026-27 fiscal year. Taxpayers filing income tax returns for the first time will have to pay a minimum tax of Tk1,000, while the minimum tax for existing taxpayers will remain Tk5,000.
According to relevant NBR sources, there are currently around 12.8 million Taxpayer Identification Number (TIN) holders in the country. However, only 4 to 4.2 million taxpayers submit income tax returns regularly each year.
The special minimum tax benefit has been retained to encourage new taxpayers to join the tax system.
From the new fiscal year, the tax-free income threshold for individual taxpayers has been increased from Tk350,000 to Tk400,000.
Income exceeding the tax-free threshold will be taxed at 10% on the first Tk 300,000, 15% on the next Tk400,000, 20% on the next Tk500,000, 25% on the next Tk2 million, and 30% on the remaining taxable income.
For example, if an individual's annual taxable income is Tk420,000, the tax on the additional Tk20,000 at the 10% rate would be Tk2,000. However, under the existing provision, the individual would have to pay Tk5,000 as the minimum tax. If the individual is filing a tax return for the first time, only Tk1,000 will be payable as the minimum tax.
Return submission allowed throughout the year
The NBR has introduced a major change to income tax return submission for the current fiscal year. Tax returns can now be submitted online at any time of the year.
However, taxpayers who submit returns earlier will receive tax rebates.
Under the new provision, taxpayers submitting returns between July and September will receive a rebate equal to 5% of the payable tax or a maximum of Tk25,000, whichever is lower.
Those submitting returns between October and December will receive no additional rebate or penalty and will only have to pay the applicable tax.
Taxpayers submitting returns between January and March will have to pay an additional 2% of the payable tax or a minimum of Tk3,000, whichever is higher.
Those submitting returns between April and June will have to pay an additional 5% of the payable tax or a minimum of Tk5,000, whichever is higher.
According to tax administration officials, allowing online return submissions throughout the year and introducing time-based tax rebates will encourage taxpayers to submit returns before the specified period.
The NBR also believes that retaining a lower minimum tax for new taxpayers will play a positive role in expanding the country's tax net.