The lawmakers from the three hill districts, along with a reserved-seat MP, have called for retaining the existing income tax exemption enjoyed by people from the indigenous communities in the Chattogram Hill Tracts (CHT).
They also urged the government to withdraw the proposed amendment included in the Finance Bill 2026 and retain the existing tax exemption, with revisions to make it more relevant to current economic realities.
In a joint letter sent to the finance minister yesterday, Khagrachhari MP Abdul Wadud Bhuiyan, Rangamati MP Dipen Dewan, Bandarban MP Saching Prue, and reserved seat MP Madhabi Marma made the demand.
According to the letter, Paragraph 27 of Part I of the Sixth Schedule of the Income Tax Ordinance, 1984, and subsequently Paragraph 19 of Part I of the Sixth Schedule of the Income Tax Act, 2023, provide income tax exemption to individual members of indigenous communities in Rangamati, Bandarban and Khagrachhari districts on income earned from economic activities conducted within the hill districts.
However, the Finance Bill 2026, placed in the parliament on June 10, proposes an amendment to Paragraph 19. Under the proposed change, from July 1, 2026, salaries and income derived from financial assets of indigenous people in the CHT would come under the tax net.
In their letter, the MPs noted that indigenous people have limited participation in business and trade, while comparatively few are employed in government and private sector jobs.
The lawmakers also proposed extending tax exemptions beyond individual income to include firms, companies, associations, societies and cooperatives wholly owned by members of indigenous communities in the three hill districts in order to promote economic activities.
The four MPs urged the finance ministry to scrap the proposed amendment to Paragraph 19 of Part I of the Sixth Schedule of the Income Tax Act, 2023, and incorporate a new provision reflecting these recommendations.
Copies of the letter were also sent to the prime minister’s economic affairs adviser, the chairman of the National Board of Revenue, and the member (Income Tax), according to the signatories.
