M K Alam, Dhaka – The government is set to introduce a wealth tax in the upcoming FY 2026-27 budget as part of a broader strategy to increase revenue from high-income brackets while providing relief to low and middle-income earners.
In a high-level meeting at the Secretariat on Thursday (May 14), Prime Minister Tarique Rahman issued several directives to the National Revenue Board (NBR) regarding the new fiscal plan.
The upcoming budget is projected at 9.30 trillion BDT, a significant jump from the current fiscal year’s 7.90 trillion BDT. The budget is scheduled to be presented in the National Parliament on June 11.
Tax Relief for Middle Class
To ease the burden on the general public, the government plans to gradually increase the tax-free income limit from the current 3.5 lakh BDT to 4 lakh BDT.
Additionally, the Prime Minister approved a proposal to raise the excise duty exemption limit on bank deposits to 5 lakh BDT.
New Charges on Vehicles
For the first time, an Advance Income Tax (AIT) is expected to be imposed on motorcycles and battery-run rickshaws.
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Motorcycles (111-125cc): 1,000 BDT annual tax.
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Motorcycles (126-165cc): 3,000 BDT.
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Motorcycles (Above 165cc): 5,000 BDT.
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Luxury Cars (Above 3500cc): AIT to jump from 2 lakh BDT to 10 lakh BDT.
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Small Cars (Up to 1500cc): Existing AIT of 25,000 BDT remains unchanged.
Focus on Health and Environment
The budget aims to discourage the consumption of harmful goods. Consequently, prices for tobacco products and foreign liquor are set to rise.
On the flip side, the government is considering incentives for electric vehicles (EVs) and eco-friendly transport to tackle the ongoing energy crisis.
The Prime Minister emphasized that the wealth tax should be designed to target high-income groups without affecting those on fixed incomes.
“The goal is to expand the tax net, not increase the burden on existing taxpayers,” officials noted.