---

The government is set to unveil a wide-ranging package of tax incentives in the national budget for FY2026-27, aimed at attracting investment, supporting small businesses, promoting renewable energy and broadening the country’s tax base through stronger compliance measures.

Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to place the budget in parliament on June 11.

One of the key proposals is a full income-tax exemption until 2035 for companies engaged in solar power generation and supply. To encourage the adoption of renewable energy, consumers using solar power may also receive a tax rebate equivalent to 5 percent of their electricity bills.

The budget is also expected to support the growing electric vehicle (EV) sector through reduced advance tax rates. Proposed rates range from Tk 25,000 for EVs with power capacity of up to 200 kilowatts to Tk 100,000 for vehicles exceeding 400 kilowatts.

To boost domestic production, investors producing edible oil from locally sourced oilseeds may receive a 10-year tax holiday extending through 2035.

The proposed budget also includes targeted support for women, youth, persons with disabilities and innovative entrepreneurs. SME entrepreneurs may enjoy tax-free income on annual turnover of up to Tk 5 million, while the threshold would rise to Tk 7 million for women entrepreneurs and entrepreneurs with disabilities.

Startups, technology-based ventures and innovative businesses are likely to receive a nine-year exemption from turnover tax.

To encourage investment outside the country’s major commercial hubs, businesses established beyond Dhaka and Chattogram may be allowed accelerated depreciation benefits, with 60 percent depreciation in the first year and 40 percent in the second year on machinery and physical infrastructure.

Alongside investment incentives, the government is preparing several measures to strengthen tax administration and expand the tax net.

Opening a bank account may require a Taxpayer Identification Number (TIN), although student accounts, no-frills accounts and individuals exempted through official notifications would remain outside the requirement.

Authorities are also planning a major data integration initiative linking information from the National Board of Revenue (NBR), banks, the Election Commission, utility providers, land registration offices and other institutions into a centralized database.

To improve withholding tax compliance, the budget may introduce a Withholders Identification Number (WIN).

The government is also expected to accelerate tax digitization by introducing online corporate tax return filing and mobile-based tax return submission. Incentives for early filing and penalties for delayed submissions are likely to be included.

Under the proposed framework, taxpayers would be allowed to submit returns after the deadline by paying Tk 5,000 or 10 percent of the tax payable, whichever is higher.

Several source tax rates on essential commodities, including rice, wheat, sugar, edible oil, fish, poultry and vegetables, may be reduced. Source tax rates on power purchases, export cash incentives, fuel supplied by refineries, gold jewellery, locally manufactured mobile phones and mobile network services are also expected to be lowered.

The budget may further reduce advance tax on imports of selected ICT products, including computer printers, flash memory devices, monitors and portable computing equipment, to support the technology sector.

In addition, the government is expected to introduce a new framework to recognize the country’s 67 highest taxpayers across different categories, as part of efforts to encourage voluntary tax compliance and strengthen revenue collection.