Executive Summary
This report provides a point-to-point analysis of the tax system in the recent Bangladesh National Budget. It evaluates structural changes to direct and indirect taxes and recommends introducing Canadian-style Tax-Free Savings Accounts (TFSAs) and First-Time Home Buyer Savings Accounts (FHSAs).
Target Revenue
৳ 4.3 Trillion
Policy Focus
Compliance & Digitalization
Direct Tax Measures
Individual Income Tax Slabs
A new 30% top marginal rate increases progressivity.
Corporate Tax Rates
Indirect Tax & VAT
Revenue Sources
Key Changes
- Reduction of exemptions on IT services.
- Mandatory Electronic Fiscal Devices (EFD).
- Increased Supplementary Duties on tobacco and mobile data.
Projected Impact
| Group | Net Assessment |
|---|---|
| Low Income | Regressive (VAT Hit) |
| Middle Income | Mixed / Neutral |
| High Income | Progressive (Tax Hit) |
Canadian Model Adoption
TFSA
Tax-Free Savings Account. Investment income grows and is withdrawn completely tax-free.
FHSA
First-Time Home Buyer Account. Contributions are tax-deductible; withdrawals for a home are tax-free.
Benefit Simulator
150,000
FHSA Tax Savings
৳ 22,500
TFSA Tax Avoided
৳ 115,400

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