Finance bill passed in Parliament: all changes at a glance

Several important amendments were made during the passage of the Finance Bill 2026 in the National Parliament. The biggest change among these is the increase in the annual tax-free income limit for individual taxpayers to four lakh taka. At the same time, the proposal to make the Tax Identification Number (TIN) mandatory for opening a bank account has been withdrawn. As a result, bank accounts can be opened without a TIN as before.

The 'Finance Bill 2026' was passed unanimously on the 18th day of the second and first budget sessions of the Thirteenth National Parliament on Monday. Hafiz Uddin Ahmed Bir Bikram presided over the meeting of the Parliament.

Earlier, Prime Minister Tarique Rahman recommended increasing the tax-free income limit and amending several proposals. Later, when Finance Minister Amir Khasru Mahmud Chowdhury proposed to pass the Finance Bill in a revised form, the Parliament approved it by voice vote.

As a result, individual taxpayers will not have to pay any tax on income up to four lakh taka in the next fiscal year. The proposed budget set this limit at three lakh 75 thousand taka.

TIN will not be mandatory for opening a bank account
The proposed budget proposed to make TIN mandatory for opening a new bank account. After objections from businessmen, general customers and various quarters, the government has withdrawn from that decision. As a result, bank accounts can be opened at the individual level without TIN under the previous rules.

At the same time, the proposal to make TIN mandatory for allotment of land and flats, registration of documents and registration of names in city corporations and municipal areas has also been canceled.

Withdrawal of controversial provision on land registration
A special provision was made in the finance bill in the name of eliminating the difference between actual value and mouza value. However, in the face of criticism that it could create an opportunity to legalize black money, the entire provision was withdrawn. As a result, the controversy over land registration has come to an end.

Tax on private universities reduced by half
Although the proposed budget retained 10 percent income tax on private universities, it was reduced to 5 percent in Parliament. This decision has been taken in the context of the long-standing demand of the university authorities.

Major reduction in VAT on digital advertising
The proposed 15 percent VAT on advertising on online video platforms, social media and search engines has been reduced to 5 percent. Those concerned believe that digital advertising-dependent businesses, startups and online entrepreneurs will get some relief from this.

New VAT structure in gold business
The VAT structure for gold, silver, platinum and diamond ornaments has been newly determined. In addition, a provision has been added to deduct tax at source at the rate of 50 paisa while purchasing these ornaments.

Withdrawal of VAT in fish and telecommunication sectors
VAT imposed at the level of fish supply suppliers has been withdrawn. In addition, VAT imposed on the revenue share of the telecommunications regulatory agency has also been canceled.

Duty and tax exemption for domestic industries
To increase the competitiveness of domestic industries, duties and taxes have been reduced or withdrawn on the import of raw materials for various industries including shrimp industry, pharmaceutical industry, electrical wire production, PVC and PET resin, refined copper, fire safety equipment.

Additional tax if less dividends are paid
If a listed company distributes dividends of less than 30 percent of its net profit after tax, an additional 10 percent tax will be paid on the deficit portion. However, banks, insurance and financial institutions will be excluded from this provision.

In addition, submission of audited financial statements has been made mandatory for institutions and individuals with capital or annual sales exceeding a certain amount.

BIN mandatory for businesses
Business identification number (BIN) has been made mandatory for operating bank accounts of businesses, taking loans, renewing trade licenses, connecting electricity and gas, merchant accounts for mobile financial services, and registering vehicles in the name of the organization.

Banks to collect VAT on foreign services
The responsibility of collecting VAT on services received from abroad has been entrusted to banks and authorized foreign exchange trading institutions.

In addition, a provision has been made to file returns once every three tax periods. Separate deadlines have also been set for government institutions, banks and insurance companies.

On the other hand, if the land owner receives a flat, cash or any other benefit from the developer under the joint development agreement, it will be considered as capital receipt and tax will be imposed on it.

Relief for businessmen and common people
Among the amendments brought during the passage of the Finance Bill, increasing the tax-free income limit, withdrawing the obligation of TIN in bank accounts and land registration, and reducing VAT on digital advertisements are seen as the most significant changes. At the same time, economists and business leaders believe that reducing customs duties on raw materials for various industries can have a positive impact on domestic production and investment.