"Final tax" Treatment is Now Narrow

Only tax collected under Sections 138 (commercial vehicles) and 139 (inland ships) is now treated as minimum tax. However, if tax deducted at source exceeds the regular tax liability, the higher amount is still payable.

On the other hand, tax withheld from a person who is not required to file an income tax return shall be the minimum tax under section 166(2).

Turnover Tax

If the regular income tax computed on business income is lower than the turnover tax, the turnover tax is what gets paid instead.

Rates of Turnover Tax

• Tobacco manufacturers: 3%
• Carbonated and sweetened beverage manufacturers: 2.5%
• Mobile phone and NTTN operators: 1.5%
• Other businesses: Nil up to Tk. 2 crore; 0.5% on turnover above Tk. 2 crore up to Tk. 4 crore; and 1% on turnover above Tk. 4 crore (S.R.O. 324/2026).

Activities Exempt from Turnover Tax

Import, sale or distribution of certain activities, including fertilizer, seed or daily necessities by any government agency or state-owned institution or corporation, commission business, delivery order (DO) business, money exchange, and trading in gold, gems and precious stones, are exempt from turnover tax.

Excess Turnover Tax

Any excess turnover tax paid in comparison with the regular tax can also be carried forward for adjustment against future tax liabilities.

Overall, the reform ends trapped withholding tax, meaningfully eases the burden on SMEs, and keeps a calibrated revenue floor for larger and high-margin sectors.