Tax above 35% proposed for income over Tk3 crore

The government is reportedly planning to increase pressure on high-income taxpayers in an effort to reduce inequality between the rich and the poor.

Under the new proposal, the highest personal income tax rate for annual earnings above 3 crore taka may be raised from the current 30% to 35%. This change is expected to take effect from the 2028–29 tax year.

According to sources in the Ministry of Finance, the upcoming budget will introduce a long-term five-year income tax framework for individual taxpayers. This framework outlines a possible tax structure covering the two years of the interim government and the following three years under a BNP-led government.

Citing the proposed budget speech of Finance Minister Amir Khasru Mahmud Chowdhury, responsible officials said that from the 2028–29 tax year to the 2030–31 tax year, an additional 5% tax is planned on income exceeding 3 crore taka. However, this higher rate will not affect middle- or lower-income taxpayers; it will apply only to a small group of high-wealth individuals.

Since tax years are assessed based on income earned in the previous fiscal year, the 35% rate would effectively apply to income earned in the 2027–28 fiscal year.

The proposed structure also includes relief measures for lower- and middle-income earners. The tax-free income threshold may be increased by 25,000 taka to 4 lakh taka.

Under the new slab system, income will be taxed as follows: 10% on the next 3 lakh taka, 15% on the next 4 lakh taka, 20% on the next 5 lakh taka, 25% on the next 20 lakh taka, and 30% on income up to 2 crore 64 lakh taka.

This means income up to 3 crore taka would be taxed at a maximum of 30%, while any income above that threshold would be taxed at 35%.