Bangladesh: Tax measures in National Budget FY 2026-2027
Proposals for targeted tax incentives and withholding tax relief
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