United News of Bangladesh

Dhaka Stock Exchange (DSE) Chairman Mominul Islam on Thursday welcomed the capital market-friendly measures in the proposed FY2026-27 budget, expressing gratitude to Finance Minister Amir Khosru Mahmud Chowdhury for prioritising the sector's development and investor confidence restoration. In a statement, the DSE chairman said the budget reflects the government's sincere commitment to modernising the capital market through policy support and institutional reform, adding that stakeholders' expectations and proposals have been given due consideration in the budget. Noting that the appointment of a special assistant for capital market affairs, a first in the country, has generated fresh optimism among market participants, Islam said the finance minister's repeated emphasis on the sector in public statements has further reinforced positive expectations. The DSE chairman specifically welcomed the initiative to simplify the Non-Resident Investor's Taka Account (NITA) operation process, saying it would play a significant role in attracting both domestic and foreign investment and deepening the market. He also highlighted DSE's ongoing initiative to transition from the existing T+2 settlement system to T+1, and eventually T+0, saying the shift would make trade settlement faster, safer and more efficient while helping build an internationally benchmarked market infrastructure. Mominul expressed confidence that the government's reform-oriented stance would help place the country's evolving capital market on a more dynamic, deep and investor-friendly footing in the long run. DSE reaffirmed its commitment to building a modern, transparent and sustainable capital market for future generations through innovation, good governance and enhanced institutional capacity.

The Foreign Investors' Chamber of Commerce and Industry (FICCI) has welcomed the government's strategic Three-R (Recovery, Restoration and Reconstruction) framework underpinning the proposed Finance Bill 2026 and the budget for FY2026-27, while raising concerns over provisions that could weigh on Bangladesh's regional competitiveness. In a statement on Thursday, FICCI described the Finance Bill as a positive, progressive and business-friendly initiative, citing the government's commitment to bringing greater clarity, simplification, predictability and digitalisation to the tax, VAT and customs regime. Among the measures it commended, FICCI highlighted the reclassification of Tax Deducted at Source (TDS) as advance tax rather than minimum tax, a move it said aligns with international standards and will significantly ease working capital pressure on businesses. The chamber also welcomed the proposed automated, faceless refund mechanism; the removal of a provision that disallowed legitimate business expenses for non-deduction of tax at source; higher ceilings on perquisites and promotional expenditure; accrual-based interest expense allowances; and a reduction in disputed tax liability at the appeal stage. On the VAT front, FICCI praised the option of quarterly return filing in place of monthly submissions, saying it would substantially reduce compliance burdens and administrative costs. Lower withholding tax rates on raw material imports, foreign loan interest and machinery leasing were also welcomed, alongside the launch of the 'BanglaBiz' platform and simplified procedures for repatriating capital and profits. However, the chamber flagged several concerns. It cautioned that without a long-term roadmap for reducing corporate tax rates, Bangladesh risks falling behind regional competitors in attracting foreign direct investment. It also warned that the abrupt mandatory rollout of e-VAT for large and multinational taxpayers, without adequate transition time or ground-level preparation, could create serious operational difficulties. FICCI expressed concern over the proposed increase in the top personal income tax rate to 35 percent, saying it would raise the cost of engaging skilled foreign professionals. It also pointed to a lack of clear guidelines on allowable deductions amid global inflation, which could inflate compliance costs for multinationals. The chamber strongly urged withdrawal of the proposed 0.2 percent Advance Income Tax (AIT) collection at the retail level, describing its implementation as impractical and operationally burdensome. It further called for extending cashless transaction incentives to private limited companies and restoring investment tax rebates for individual taxpayers to encourage domestic savings. FICCI stressed that all fiscal measures should be applied prospectively, warning that retrospective implementation creates market uncertainty and discourages long-term investment. On the fiscal framework, FICCI noted that the proposed budget of Tk 9.38 lakh crore, equivalent to 13.7 percent of GDP, represents a substantial increase over the previous year. Major allocations for human development include Tk 1,36,606 crore for education and Tk 69,409 crore for health. However, the chamber described the total revenue target of Tk 6.95 lakh crore as overly ambitious, requiring revenue growth of between 23 and 42 percent over last year's target, a level it considered unrealistic under current economic conditions. Financing a Tk 2.43 lakh crore budget deficit will require mobilisation from both domestic and external sources. The chamber said the ultimate success of Finance Bill 2026 would depend on effective implementation, policy consistency, stronger institutional capacity and continuous improvement in the ease of doing business.

The Institute of Chartered Accountants of Bangladesh (ICAB) on Thursday broadly welcomed the national budget for fiscal year 2026-27 as a business-friendly framework, while raising concerns about the heavy reliance on bank borrowing to finance the development budget. ICAB President NKA Mobin, in a statement, congratulated the government for presenting what he described as a strategic and forward-looking budget. Budget 2026-27: Govt unveils Tk 10,533 cr plan to boost water resources sector He also acknowledged Finance and Planning Minister Amir Khosru Mahmud Chowdhury for tabling the Tk 9,38,000 crore budget, equivalent to 13.7 percent of GDP, amid significant domestic and global economic headwinds including the Iran-Israel conflict, energy crisis, high inflation, and sluggish business investment. While welcoming the Tk 3,16,075 crore development budget, of which Tk 3,00,000 crore falls under the Annual Development Programme (ADP), ICAB cautioned that an estimated 35 percent of the development outlay, or Tk 1,12,000 crore (46 percent of the total deficit financing of Tk 2,43,000 crore), is expected to be met through bank borrowing. The institute warned this could constrain credit availability for the private sector and dampen private investment. ICAB also flagged that a 0.2 percent tax on retail trade and a 0.5 percent tax on certain agricultural products could add to inflationary pressures. Revenue Measures On broadening the tax net, ICAB said the Document Verification System (DVS), a joint initiative with the National Board of Revenue (NBR), would significantly support revenue mobilisation. The institute also commended NBR for involving ICAB in digitising corporate tax returns. Among income tax changes, ICAB welcomed the five-year lock-in of tax rates as a facilitator of long-term investment planning. It also praised the abolition of the “minimum tax” provision to lower effective tax rates for entities, new provisions for advance income tax adjustment and carry-forward, and universal self-assessment return filing to speed up tax processing. ICAB additionally welcomed startup tax incentives, including exemptions from sections 55 and 56 and a zero percent turnover tax during growth years, along with mandatory withholding identification numbers (WIN) for source-tax entities, and a reduction in tribunal appeal deposit from 10 percent to 3 percent of disputed amounts. However, the institute urged reconsideration of: a 10 percent surcharge on listed companies distributing less than 30 percent of post-tax profit as dividend, arguing it could limit capital retention by asset-heavy companies; mandatory advance tax collection of 0.2 percent on direct sales to retailers; and sector-based minimum turnover taxes that could burden low-margin businesses. VAT and Customs On the VAT front, ICAB welcomed the exclusion of “labour” from the definition of inputs, removing disputes over input tax credits for manpower services, VAT exemptions for content creators and freelancers, reduction of VAT appeal deposits from 10 percent to 1 percent, and a cap on penal interest to 24 months for pre-July 2022 disputes. On customs, the institute praised the introduction of the “Importer on Record” definition for clearer legal accountability, new free trade zone (FTZ) provisions with operational flexibility, reduction of appeal security from 10 percent to 1 percent, and a general order mechanism to determine assessable value based on internationally recognised reference prices. ICAB did flag concern over a 2 percent pre-deposit requirement for High Court customs appeals, calling it a potentially disproportionate barrier in large-value disputes. “The budget is broadly business-friendly and should help Bangladesh transition from a developing to a developed economy,” Mobin said, expressing hope that ICAB's recommendations, including those aimed at revenue growth and reducing legal ambiguity would contribute positively to employment generation and economic progress.

The proposed national budget for FY2026-27 is business and investment-friendly but its real test lies in achieving ambitious revenue targets and translating announced reforms into action, the Dhaka Chamber of Commerce & Industry (DCCI) said on Thursday. "The actual success will depend on achieving the ambitious revenue targets and ensuring the effective implementation of the announced reforms," DCCI President Taskeen Ahmed said at the chamber's initial reaction programme on the proposed budget, held at the DCCI Auditorium. The Tk 9,38,000 crore budget, 19.04% larger than the previous fiscal year, targets 30.34% revenue growth, which Taskeen described as "highly challenging under the current economic circumstances." He also cautioned that heavy reliance on borrowing to finance the deficit could strain the banking sector and crowd out private-sector credit. The proposed Annual Development Programme (ADP), set at BDT 3,00,000 crore, a 30% jump over last year, drew measured praise, though the DCCI flagged that the current fiscal year's ADP implementation rate of just 36.19% exposed deep execution weaknesses. Emphasis should be placed not only on larger allocations but also on ensuring effective implementation, the chamber said. On taxation, DCCI welcomed several measures, including the treatment of withholding tax as advance tax, a longstanding business demand, the reduction of withholding tax on industrial raw materials to 4%, a 0.5% withholding tax on 60 essential commodities, and a five-year advance tax structure for healthcare, renewable energy and electric vehicle sectors. However, the chamber expressed disappointment that the tax-free income threshold remained unchanged despite persistent inflation and took issue with the top personal income tax rate being set at 35%. DCCI called on the government to raise the tax-free threshold to Tk 5,00,000. For smaller businesses, the chamber praised the exemption of turnover tax for SME entrepreneurs with annual turnover up to BDT 50 lakh, extendable to Tk 70 lakh for women entrepreneurs and persons with disabilities, along with the introduction of e-loans of up to Tk 50,000 under Bangladesh Bank's Tk 60,000 crore stimulus package. On energy, DCCI welcomed EV-related incentives, including VAT exemption until 2030 and zero-duty import facilities for EV charging equipment, but said measures for gas exploration and well drilling fell short of the country's growing demand. It urged the government to develop a long-term energy pricing framework through stakeholder consultation, warning that short-term subsidies without a clear pricing structure could encourage inefficiency over investment. Other measures drawing DCCI's appreciation included mandatory single-window service implementation, seven-day work permit issuance, 10-day investor visas, and the halving of withholding tax on foreign loan interest payments from 20% to 10%. DCCI Senior Vice President Razeev H. Chowdhury, Vice President Md. Salem Sulaiman and other board members were present at the event.

The government has proposed raising the tax-free income ceiling for individual taxpayers to Tk 3.75 lakh in the national budget for fiscal year 2026-27, up from the existing threshold of Tk 3.5 lakh. Finance Minister Amir Khosru Mahmud Chowdhury made the proposal while unveiling the budget in Parliament on Thursday, affirming that the revised limit will remain in effect for the next two consecutive fiscal years, extending through FY2027-28. The adjustment builds upon the previous decision by the former interim government's finance adviser Dr Salehuddin Ahmed, who had initially increased the ceiling. The newly elected government has decided to maintain and advance this trajectory, a move analysts believe will provide much-needed breathing room for low-income and middle-class families hit hard by inflation. Special Categorised Exemptions Expanded: Following past conventions, the proposed budget offers higher tax-free thresholds for several specific categories of taxpayers. The threshold for women and senior citizens (65+) has been fixed at Tk 4.25 lakh, third gender and physically challenged taxpayers at Tk 5 lakh, gazetted freedom fighters and injured July uprising warriors Tk 5.25 lakh, and parents/legal guardians of persons with disabilities an additional Tk 50,000 exemption per child or dependent over their applicable personal threshold. Currently, Bangladesh has approximately 1.28 crore Taxpayer Identification Number (TIN) holders, out of whom only 40 lakh to 42 lakh individuals file income tax returns annually. New Tax Slabs: 5% Rate Abolished In a significant structural overhaul, the government has eliminated the lowest 5 percent tax bracket entirely, a move that may increase the tax burden on mid-to-high-income earners. Under the new layout, once the initial Tk 3.75 lakh tax-free buffer is crossed, the remaining income will be taxed under the following reconfigured slabs: Next Tk 3 Lakh: 10 percent Next Tk 4 Lakh: 15 percent Next Tk 5 Lakh: 20 percent Next Tk 20 Lakh: 25 percent Remaining Income: 30 percent Starting from the upcoming fiscal year, taxpayers will be allowed to submit their income tax returns throughout the entire year, moving away from rigid deadlines. However, the system introduces a tiered reward-and-penalty mechanism based on timing: Submission Period | Fiscal Benefit / Penalty: First Quarter (July-September)- Rebate: 5 percent of payable tax or Tk 25,000 (whichever is less). Second Quarter (October-December)-Standard: Regular tax applies; no incentives or penalties. Third Quarter (January-March) Penalty: Additional 2 percent of payable tax or Tk 3,000 (whichever is higher). Fourth Quarter (April-June) Penalty: Additional 5 percent of payable tax or Tk 5,000 (whichever is higher). | Erosion of Real Income and Persistent Inflation: The tax-exempt ceiling was last raised from Tk 3 lakh to Tk 3.5 lakh in the 2023 budget. Over the subsequent three years, the threshold remained stagnant despite persistent economic headwinds. Bangladesh has experienced a gruelling average inflation rate of around 10 percent annually over this period. According to the latest data from the Bangladesh Bureau of Statistics (BBS), inflation in May hit 9.42 percent, marking a 16-month high. Economists point out that this prolonged inflationary pressure has severely diminished the real purchasing power of citizens, leaving those sitting just above the tax-free line struggling to balance escalating living costs with their statutory tax obligations.

In a major financial intervention, the government has earmarked Tk 40,000 crore in the proposed national budget for FY 2026-27 to bail out and stabilize the struggling banking sector. The massive financial package comes as a desperate measure to salvage several weak and distressed commercial banks and Non-Bank financial Institutions (NBFIs) currently grappling with severe liquidity crunches, rising non-performing loans (NPLs), and eroded capital adequacy. According to Ministry of Finance sources, the allocation will be utilized to inject fresh capital, stabilize liquidity frameworks, and restore public confidence in the financial system. Economists and sector experts view this as one of the largest state-backed banking rescue operations in the country’s history. The decision arrives at a critical juncture for Bangladesh’s economy. Recent central bank evaluations have flagged multiple commercial banks—particularly state-owned entities and several state-connected private sector Islami banks—as heavily "vulnerable." According to financial reports, gross non-performing loans (NPLs) across the banking sector have spiked significantly over the past couple of years, bringing the system-wide Capital Adequacy Ratio down to precariously low levels. This capital erosion has effectively crippled the lending capacity of weaker banks, forcing the government to step in with taxpayer-funded fiscal support. While the exact operational modalities are still being finalized, the broad framework outlines a phased recapitalization plan. The funds are expected to be routed through Bangladesh Bank to provide targeted capital injections and emergency liquidity lines to commercial institutions categorized under the "weak bank" list. "The fundamental goal is to protect the interests of ordinary depositors and prevent a systemic collapse of the financial sector," said in the budget speech. "However, this cash injection will be tied to strict conditionalities, including institutional restructuring and aggressive loan recovery targets,” according to the budget document.

The government has decided to allow shopping malls, markets and retail shops across the country to remain open until 9pm from June 12, easing restrictions imposed earlier as part of power-saving measures.  The Power Division issued a notification on Thursday saying that the revised operating hours would be from 11am to 9pm.  Earlier, under a government decision that took effect on June 1, shopping malls, markets and shops were required to close by 7pm instead of 10pm to help manage electricity consumption.  According to the latest directive, the new schedule will also apply to fairs, trade fairs and cultural events currently being held or scheduled across the country.  However, restaurants, hospitals, pharmacies and other essential services will remain outside the purview of the restriction.  The Power Division also instructed the relevant authorities to ensure that all billboards switch off their lights by 9pm.  In addition, organisers of fairs, trade fairs and cultural programmes have been directed to conclude their activities by 9pm.  The government had introduced earlier restrictions amid efforts to ensure efficient electricity use and maintain a stable power supply during periods of high demand. The latest decision comes as authorities adjust the measures in light of the prevailing power situation. 

Prices of gold in Bangladesh have been reduced for the fourth consecutive time, with the Bangladesh Jeweller’s Association (BAJUS) cutting the rate of 22-carat gold by Tk 4,432 per bhori (11.664 grams) to Tk 218,350. In a notice issued on Thursday morning, the trade body said the new prices took effect from 10:00am. It attributed the latest adjustment to a decline in the price of pure gold in the local market, prompting it to revise gold rates after considering the overall market situation. Under the new pricing structure, 21-carat gold will cost Tk 208,436 per bhori, while the price of 18-carat gold has been set at Tk 178,692 per bhori. The price of gold produced under the traditional method has been fixed at Tk 145,508 per bhori. The latest reduction comes just a day after BAJUS lowered gold prices by Tk 6,591 per bhori on Wednesday, setting the price of 22-carat gold at Tk 222,782 per bhori. Gold prices have declined in eight of the last 10 adjustments made by BAJUS. During the latest streak of four consecutive cuts, the price of 22-carat gold has fallen by a cumulative Tk 19,771 per bhori. So far in 2026, BAJUS has revised gold prices 73 times. Of those adjustments, prices were increased on 37 occasions and reduced 36 times. Alongside gold, it also announced a fresh reduction in silver prices. The price of 22-carat silver has been cut by Tk 58 per bhori to Tk 4,841. The rate for 21-carat silver has been set at Tk 4,607 per bhori, while 18-carat silver will sell at Tk 3,966 per bhori. Silver produced under the traditional method will cost Tk 2,974 per bhori. Silver prices have been adjusted 44 times so far this year, with 22 increases and 22 decreases recorded during the period.

The 20th edition of Bangladesh Denim Expo began at the International Convention City Bashundhara (ICCB) in the capital on Wednesday with the theme “Frontline to Future.” The two-day expo brings together global industry stakeholders to chart the course of Bangladesh’s denim and apparel sector amid rapidly evolving economic and trade dynamics, according to a press release. 18th Bangladesh Denim Expo kicks off The inauguration ceremony was attended by distinguished guests, including Luthmela Farid, director of Pacific Jeans; Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange and former director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA); Javier Santonja Olcina, regional head (Bangladesh and Pakistan) of Inditex; Mahmud Hasan Khan, President of BGMEA; Michael Miller, Ambassador and Head of the Delegation of the European Union to Bangladesh; and Mostafiz Uddin, founder & CEO of Bangladesh Denim Expo. In his speech, Ambassador Michael Miller underscored the European Union’s perspective on Bangladesh’s evolving economic journey. “The way the European Union looks at Bangladesh is that we see it entering a new phase of its economic journey. The challenge now is to create decent jobs, skill the workforce, attract high-quality investments to move up value chains, help diversify the economy, ensure a clean energy transition, and prepare effectively for graduation from least developed country status,” he said. “We hope to see a bold, sustainability-driven vision in the budget – one that aligns with the European Union’s expectations for the creation of a level playing field for our operators and that takes decisive steps to improve the business environment,” Miller added. He also announced a significant diplomatic development, noting that he had transmitted an invitation from the European Commission President to Prime Minister Tarique Rahman to attend the next Global Gateway Summit in Brussels. Miller further noted that the EU is currently assessing Bangladesh’s request for a free trade agreement, building on the recently initiated Partnership and Cooperation Agreement, reaffirming the EU’s commitment to a reinforced economic partnership with Bangladesh. BGMEA President Mahmud Hasan highlighted Bangladesh’s remarkable position in global denim trade while sounding a clear note of caution regarding the country’s impending Least Developed Country (LDC) graduation. “Bangladesh is today the largest exporter of denim to both the EU and the United States — ahead of China. We must acknowledge that Bangladesh Denim Expo has played a meaningful role in this journey. It is not the only factor, but it is an important one,” he said. “We are approaching LDC graduation. This is being discussed in every boardroom and every policy meeting in Dhaka. Our position at BGMEA is clear: the preferences we currently enjoy will change after graduation. If we are not prepared, the industry will feel it. RMG is currently the biggest beneficiary of preferential access. In the post-LDC era, without the right trade arrangements in place, the apparel industry risks becoming the biggest loser,” Mahmud Hasan said. Two panel discussions, titled “Negotiating the Future: Trade Agreements and Bangladesh Apparel in the Post-LDC Era” and “Stitching the Future: Just Transition in Bangladesh’s Apparel Industry,” were held on the first day of the expo. Besides, a dedicated Trend Zone has been set up at the expo to showcase the latest denim innovations and emerging trends shaping the future of the global denim industry. The exposition will end on Thursday.

In a major move to restore discipline and protect depositors’ interests, Bangladesh Bank (BB) on Wednesday appointed its Executive Director Md Ashraful Alam as an observer to Islami Bank Bangladesh PLC. The appointment was made with immediate effect, according to a press release issued by the central bank. Depositors’ forum issues 24-hour ultimatum over Islami Bank board chief removal It stated that the strategic intervention aims to closely monitor the overall operations of the country’s largest Shariah-based private commercial bank, safeguard its corporate interests, protect the rights of its massive depositor base, and ensure broader public interest. As part of his official mandate, Ashraful Alam will actively participate in the meetings of Islami Bank's Board of Directors and other relevant top-tier administrative proceedings. He will also be responsible for providing critical operational data, assessments, and regular updates directly to the central bank. The regulatory intervention comes amid escalating protests and deep-rooted instability surrounding the bank’s corporate governance. Bangladesh Bank emphasised its core commitment to ensuring stability, good governance, transparency, and accountability across the country’s financial sector. It expressed optimism that the deployment of a senior regulatory observer will be pivotal in restoring public trust, enhancing transparency, and reinforcing discipline within the daily operations of Islami Bank.