July Warriors' tax-free income limit likely to be Tk 525,000

The government is expected to introduce a new category, July Warriors, under personal income tax and offer tax relief on incomes up to Tk 525,000 for two years, beginning from the 2026–27 fiscal year.

Similarly, the tax-free income threshold for war-wounded freedom fighters is expected to increase to Tk 525,000 from FY27, up from Tk 500,000 at present.

Finance Adviser Salehuddin Ahmed is expected to unveil the national budget on June 2, when he will present the budgetary measures for the 2025–27 fiscal year, beginning in July.

The benefit will apply to gazetted July Warriors.

The interim government in February this year published a list of 1,401 July Warriors in recognition of their participation in the student-led uprising in July–August last year that toppled Sheikh Hasina's Awami League government.

The finance adviser is expected to keep the tax-free income limit for individuals unchanged at Tk 350,000 in the next fiscal year, although proposals were placed to raise the threshold from FY27 and maintain it unchanged for two years under the prospective tax regime, which will be introduced from the next fiscal year.

Accordingly, the tax-exempt threshold for women and other categories of taxpayers will also increase from FY27.