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

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July 29, 2025

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

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