Dhaka, June 20 -- The Bangladesh government has decided to incentivise export income by reducing the withholding tax in the upcoming budget, but exporters say an additional 27.5 percent tax imposed on their incomes will completely overwhelm any benefits from the scheme.

The hike in their income taxes will come as a result of the decision to remove the minimum tax provision in the budget Finance and Planning Minister Amir Khosru Mahmud Chowdhury presented for the fiscal year 2026-27 in parliament on Jun 12.

As part of that plan, the Finance Bill 2026 proposes to amend Section 163 of the Income Tax Act, which, if adopted, will remove the minimum tax section.

As a result, all income, from savings certificates to incentives for export prod...