Dhaka, June 2 -- Finance Advisor Salehuddin Ahmed has proposed raising the tax-free income threshold in the FY2025-26 budget in light of inflationary pressures and current economic realities.

At the same time, to boost revenue collection, the advisor has recommended reducing the number of tax slabs from seven to six -- a move that will increase the tax burden on many earners.

Under the proposed Tk 7.9 trillion budget tabled on Monday, the exemption ceiling for individual taxpayers and Hindu undivided families will rise from Tk 350,000 to Tk 375,000. In other words, no tax will be levied on annual income up to Tk 375,000.

Higher thresholds have also been proposed for women, senior citizens (those above 65 years of age), persons with dis...