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, reports bdnews24.com.

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