Overview:
Alongside the national budget, Bangladesh has introduced the Finance Ordinance 2025, an ambitious reform package reshaping personal income tax, corporate taxation, VAT, and compliance mechanisms. These changes reflect a focus on equity, digital enforcement, and rational revenue growth.
Personal Income Tax Reforms:
- Tax-free threshold raised from Tk 350,000 to Tk 375,000.
- Higher exemptions:
- Women & Seniors (65+): up to Tk 425,000
- Persons with Disabilities: up to Tk 500,000
- Revised tax slabs increase effective rates for middle-income brackets.
- Reimbursements for major surgeries and group insurance premiums are now non-taxable.
- Minimum tax:
- New taxpayers: Tk 1,000
- Others (if income > exemption): Tk 5,000
Proposed Corporate Tax & Minimum Taxation:
- Non-publicly traded companies: Tax rate raised from 25% to 27.5%
- Non-publicly traded merchant banks: Now taxed at 40% from 37.5%
- Publicly traded banks & companies: No change (incentivizing listing)
Minimum Tax (Gross Receipts-Based):

Exemptions & Final Settlements:
- Income from prestigious awards (Nobel, Booker, Grammy): Tax-exempt
- Universal Pension Scheme: Benefits are tax-free
- Capital gains from property transfers and Sanchayapatra interest are to be treated as final settlement taxes
Compliance & Digital Record-Keeping:
- Mandatory use of ERP systems or approved VAT software for VAT record maintenance.
- Quarterly submission of withholding tax returns (replacing monthly returns).
Reference/Citation
Finance Ordinance 2025