Govt plans tax relief for content creators

The government is planning to exempt individual content creators and freelancers from the existing 7.5 percent source tax in the 2026–27 budget, in a move aimed at supporting the country’s growing digital economy and encouraging online entrepreneurship.

Under the proposal, income earned through digital platforms such as YouTube, Facebook, TikTok and other online channels will no longer be subject to the source tax currently applied to remittances received from abroad, according to officials involved in budget preparations.

“A provision will be incorporated into the Finance Bill 2026 to provide this exemption under the existing source tax framework,” said a finance ministry official, requesting anonymity.

The National Board of Revenue may define a “content creator” as a person who produces content independently, meaning only individuals will qualify under this category. According to an official, media houses or other institutional entities will not be included within this definition.

At present, a 7.5 percent source tax is deducted from income remitted from abroad for services, revenue-sharing arrangements and similar activities under the Income Tax Act 2023.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to formally propose the measure while presenting the national budget in parliament on June 11.

Officials said the proposal has already received in-principle approval from Prime Minister Tarique Rahman at a high-level meeting.

The initiative is part of the government’s wider efforts to promote the information technology and digital services sectors, which have become key sources of jobs, entrepreneurship and foreign exchange earnings.

Officials added that the tax relief is expected to encourage young entrepreneurs, freelancers and digital content creators to expand their activities, while also helping to formalise the country’s fast-growing creator economy.

The move gained momentum after the prime minister recently met content creator Zuel Rana, owner of “Citto Media,” who produces nature-related content on social media. Following the meeting, the creator said the government had assured steps to withdraw the source tax on freelance and content-creation income.

Meanwhile, Dutch-Bangla Bank has formally suspended the deduction of withholding tax on freelance earnings. It also said it has started the process of refunding taxes previously deducted from freelancers’ accounts.

Bangladesh currently has around 500,000 freelancers working in digital services and content creation, making it one of the largest freelance talent pools in the region.

METRO RAIL VAT EXEMPTION LIKELY TO CONTINUE

The government is likely to extend the existing value-added tax (VAT) exemption on fares of the Dhaka metro rail for another year, as the service continues to gain strong popularity since its launch.

The finance minister is expected to include the proposal in the upcoming budget. The current exemption is set to expire in June this year.

Dhaka metro rail began commercial operations in late December 2022 and quickly became popular among commuters, especially office workers and students seeking relief from crowded and congested bus travel.

Since its launch, the government has maintained tax exemptions on metro rail fares. Around 3.5 lakh passengers now use the service daily.