Dhaka, June 29 -- The government has raised the tax-free income threshold by Tk 25,000 to Tk 400,000 for the next tax year, departing from its original budget proposal to keep the exemption limit unchanged.

As a result, individuals earning up to Tk 400,000 between July 2025 and June 2026 will not have to pay income tax.

The change came after Prime Minister Tarique Rahman proposed an amendment during discussions on the national budget in parliament on Monday.

The BNP government had initially proposed retaining the tax-free income threshold set by the interim government for the ongoing fiscal year.

Under the revised structure, income exceeding Tk 400,000 will be taxed at 10 percent on the next Tk 300,000.

Previously, the first slab abo...