Dhaka, June 14 -- The government has proposed slashing the source tax on reinsurance premium fees paid to non-resident individuals or corporations by half for the next fiscal year.

Finance Minister Amir Khosru Mahmud Chowdhury announced the measure while presenting the proposed budget for the 2026-27 fiscal year in parliament on Thursday.

The new withholding tax rules published by the Income Tax Wing later showed that the rate on reinsurance premium payments will be reduced to 5 percent from the next fiscal year.

The rate is currently 10 percent, meaning the tax burden on such payments will be cut by half.

In his budget speech, the finance minister said the withholding tax deduction rate on insurance premiums paid to non-resident taxp...