FROM PAGE B1

The prime minister urged the institutions to use the tax savings to strengthen research, establish language laboratories and provide tuition-free education for poor and meritorious students.

The government has also relaxed the corporate tax regime for listed and non-listed companies by easing the public shareholding requirement.

Under the revised provision, listed companies with at least 10 percent of their paid-up capital held by the public, down from the previous requirement of more than 10 percent, will qualify for the preferential corporate tax rate of 20 percent if they meet the prescribed conditions.

Listed companies with less than 10 percent public shareholding will also benefit, as their corporate tax rate has been reduced from 25 percent to 22.5 percent, subject to compliance with the required conditions.

Non-listed companies will qualify for a reduced corporate tax rate of 25 percent, down from 27.5 percent, if they meet the government’s compliance requirements.

The government has also withdrawn its proposal to tax corporate dividend income at regular corporate tax rates, retaining the preferential 20 percent rate.

The earlier proposal would have pushed the tax on dividend income for banks as high as 37.5 percent.

TAX-FREE THRESHOLD UP

The tax-free income threshold has been raised to Tk 4 lakh for FY2026-27 and FY2027-28. It will increase to Tk 4.5 lakh in FY2028-29 and FY2029-30 before rising to Tk 5 lakh in FY2030-31.

Tax exemptions for ethnic communities have also been extended to cover salary income and now apply to ethnic people living in the plains as well as those in the three hill districts.

NO TIN FOR BANK ACCOUNT OPENING

The requirement to provide a tax identification number (TIN) when opening a bank account has been dropped after stakeholders argued that it could discourage financial inclusion.

Capital gains tax on gold has been cut from 15 percent to 5 percent. Value-added tax (VAT) on digital advertising across social media platforms, OTT platforms and online marketplaces has also been reduced from 15 percent to 5 percent.

VAT on locally assembled double-cabin pickup trucks and microbuses has likewise been cut from 15 percent to 5 percent.

On tariffs, the government has withdrawn the 10 percent supplementary duty (SD) on honey imports for manufacturing industries, reduced import duty on PVC and PET resin from 10 percent to 5 percent, scrapped the 10 percent regulatory duty on cold-rolled sheets, flat-rolled coated products and refined copper cathodes, and cut customs duty on raw cashew nuts from 15 percent to 5 percent.

Concessional duty facilities for manufacturers of LED lamps and prefabricated buildings have been extended till June 30, 2030.