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Bangladesh: Tax measures in National Budget FY 2026-2027

Proposals for targeted tax incentives and withholding tax relief

July 29, 2026

The Ministry of Finance and Planning of Bangladesh on June 11, 2026, presented the National Budget for tax year 2026-2027, which includes proposals for:

  • Targeted tax incentives for key sectors
  • Significant withholding tax relief on essential commodities
  • Replacement of minimum tax withholding with a refundable advance tax system
  • Initiatives to broaden the tax base through enhanced taxpayer identification and data integration
  • Simplified turnover tax regime for small businesses
  • VAT exemptions for startups and selected sectors
  • Reduced duties on solar-power components
  • Other tax incentives for technology products and electric vehicle manufacturing


For more information, contact a KPMG tax professional in Bangladesh:

Abidur Rahman | abidurrahman@kpmg.com

Jashim Uddin | juddin@kpmg.com

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