The Internal Resources Division under the finance ministry has issued a notification exempting gross receipts up to 2 crore taka in turnover from tax. The notification was issued by Ahsan Habib, acting secretary of the Internal Resources Division and acting chairman of the National Board of Revenue (NBR), under presidential order. It was published as a gazette on Monday.
The new tax rate will apply to sectors other than manufacturers of cigarettes, bidi, chewing tobacco, smokeless tobacco, gul or other tobacco products; manufacturers of carbonated beverages and sweetened drinks; and mobile phone operators and NTTN operators.
Under the notification, no turnover tax will apply to gross receipts up to 2 crore taka in other sectors. For gross receipts above 2 crore taka but up to 4 crore taka, the minimum turnover tax rate will be 0.5 percent. Above 4 crore taka, the rate will be 1 percent.
The Finance Act 2026 had earlier set the turnover tax rate at 1 percent, raising concerns about a heavy tax burden. In response, the government has walked back its earlier position on the turnover tax rate.
Turnover tax is a tax levied at a set rate on a business’s total annual sales or transactions, payable even if the business makes no profit.