Dhaka, May 29 -- As inflation bites hard on limited-income groups, the interim government plans to offer a small break by increasing the tax exemption limit, while the National Board of Revenue (NBR) pushes for higher tax rates that may cancel out the benefit.

Senior officials at the revenue board say they have received the government's consent to increase the tax-free income limit for individual taxpayers by Tk 25,000 to Tk 375,000 in the next fiscal year.

Alongside this, the base tax rate is set to jump from 5 percent to 10 percent.

With the policy-level green light already in place, the NBR is now including this in the draft budget for final government review, said a senior official from the tax authority.

The move has drawn mixed ...