Bangladesh: Tax measures in National Budget FY 2025-2026
Including proposed tax cut for merchant banks, revocation of long-term tax incentives for certain sectors
The Ministry of Finance on June 2, 2025, presented the National Budget for FY 2025-2026 which focuses on direct tax proposals including:
- Reducing the corporate tax rate for merchant banks to 27.5%
- Adjusting withholding tax rates
- Introducing new individual tax slabs with a top rate of 30%
The budget also proposes tax exemptions for certain incomes and adjustments to value added tax (VAT) rates.
For more information, contact a KPMG tax professional in Bangladesh:
Abidur Rahman | abidurrahman@kpmg.com