United News of Bangladesh

A range of everyday products – from mid-range passenger cars and cigarettes to washing machines and imported paper – are likely to become more expensive as Finance Minister Amir Khosru Mahmud Chowdhury on Thursday proposed higher taxes, duties and regulatory charges on various imports and consumer goods in the national budget for fiscal year 2026-27. In a bid to curb the use of fossil fuel-powered vehicles and promote electric alternatives, the minister in his budget speech proposed raising the overall tax burden on imported internal combustion (IC) engine cars with 1200 to 1600cc capacity from the existing 132.36 percent to 155.88 percent, a significant jump that industry insiders say will push up showroom prices for popular mid-range models. Household washing machines will also face a new 20 percent supplementary duty under the proposal, a measure aimed at protecting domestic manufacturers. Similarly, a fresh 20 percent regulatory duty on imported gypsum boards and sheets is expected to raise construction and interior fitment costs. Smokers will face a steeper bill as well. The proposed budget sets new minimum retail prices for cigarettes across all tiers, Tk 62 per 10 sticks at the lowest tier, Tk 92 at the medium tier, Tk 160 at the high tier and Tk 210 at the premium tier. Printing and packaging costs could climb after the minister proposed raising import duties on greaseproof and glassine paper from 10 percent to 25 percent, along with a new 5 percent regulatory duty on both products. Import duties on PVC and PET resin, key raw materials for plastic manufacturing, are also proposed doubling from 5 percent to 10 percent, a move likely to ripple into a range of consumer goods. The import duty on bicycle freewheel components is proposed rising from 15 percent to 25 percent, with an additional 5 percent regulatory duty. Importers of copper tubes will face a duty increase from 15 percent to 25 percent, with copper wire imports attracting a new 10 percent regulatory duty, changes that could affect electrical installation costs. Transformers up to 1 KVA capacity will see import duties jump from 10 percent to 25 percent, plus a new 5 percent regulatory duty. Cold-rolled steel coils and sheets, widely used in manufacturing, will face an additional 10 percent regulatory duty to shield domestic producers, while maize starch imports would carry a higher duty of 25 percent, up from the current 15 percent. The finance minister framed many of the increases as protective measures for nascent domestic industries, while the fossil fuel vehicle surcharge was explicitly tied to an environmental rationale. The proposed budget sets total expenditure at Tk 9,38,000 crore, equivalent to 13.7 percent of GDP and Tk 1,48,000 crore higher than the previous fiscal's budget.  

Despite repeated calls from the business community to lower corporate taxes, the government has kept corporate tax rates unchanged in the proposed budget for fiscal year 2026-27, Finance Minister Amir Khosru Mahmud Chowdhury announced on Thursday while presenting the budget in parliament. "In the interest of policy continuity and to assure investors of a stable tax regime over the medium term, I propose keeping the existing corporate tax rates unchanged for the next tax year," the minister said. However, he indicated that the government remains committed to gradually reducing rates in the future by expanding the tax net and improving collection efficiency. The minister also outlined a set of taxpayer-friendly reforms accompanying the budget, including simplifying corporate tax compliance, enabling online income tax return filing and payment, reducing regulatory burden on businesses, expanding allowable business expenditures, and scrapping provisions that disallow costs when withholding tax is not deducted. He added that the process of selecting tax cases for audit and withholding tax verification would be made fully transparent and automated. Sector-wise Rates at a Glance Under existing rates, now carried forward, general companies defined under the income tax law face a flat rate of 27.5 percent. Listed companies that transfer more than 10 percent of paid-up capital through IPO are taxed at 22.5 percent, reducible to 20 percent upon meeting additional conditions. Publicly traded banks, insurance companies, and non-bank financial institutions face a 37.5 percent rate, while their non-listed counterparts pay 40 percent. Merchant banks are taxed at 27.5 percent. Tobacco product manufacturers, including cigarettes, bidis, zarda and gul, face the steepest burden at 45 percent plus a 2.5 percent surcharge. Publicly traded mobile phone operators with at least 10 percent IPO shareholding are taxed at 40 percent, while non-listed operators face a 45 percent rate. Co-operative societies are taxed at 20 percent. Private universities, medical, dental and engineering colleges, and IT-focused private institutions enjoy a concessional rate of 10 percent.  

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday announced that a new pay scale for government employees will be implemented in phases starting from July 1, citing the rising cost of living and inflationary pressures. He made the announcement while presenting the proposed national budget for the 2026-27 fiscal year in Parliament. The minister said government employees have been receiving salaries and allowances under the same pay structure for nearly eleven years. “During this period, the cost of living has increased significantly due to inflationary pressures. In recognition of this reality, the government is announcing the phased implementation of a new pay structure for public employees beginning on 1 July 2026.: He said merit, integrity, competence, experience, and professional qualifications will serve as the principal criteria for all appointments, transfers, and promotions across the public service in the government’s pursuit of building a “Meritocratic Bangladesh.” Khosru expressed firm belief that the ongoing reforms will extend far beyond the simplification of administrative procedures. “They will contribute to improving the overall business environment, attracting greater domestic and foreign investment, creating new momentum for enterprises of all sizes, strengthening the foundations of production and exports, and expanding employment opportunities across the economy.” An amount of Tk 89,380 crore has been earmarked for salaries and allowances of government officials and employees in the next fiscal year. The allocation is Tk 4,641 crore, or 5.47 percent, higher than the revised allocation of Tk 84,739 crore in the outgoing fiscal year. According to budget documents, the original allocation for government salaries and allowances in FY26 was Tk 84,114 crore, which was later revised upward to Tk 84,739 crore. The proposed allocation also marks a significant increase from the actual expenditure of Tk 69,423 crore recorded in FY25, indicating a rise of nearly Tk 20,000 crore in annual spending on government pay and benefits over two years. Of the total allocation, Tk 13,874 crore has been earmarked for officers’ salaries, up from Tk 12,927 crore in the revised budget for FY26, reflecting an increase of Tk 947 crore. For salaries of employees, Tk 30,671 crore has been allocated, compared to Tk 29,170 crore in the revised budget, registering an increase of Tk 1,501 crore. The largest share of the allocation will go to allowances, which have been proposed at Tk 44,835 crore, up from Tk 42,642 crore in the revised budget. The increase in this category alone amounts to Tk 2,193 crore. According to the experts, annual increases in salary and allowance allocations have become necessary due to rising living costs, inflation and the continued recruitment of personnel in public service. An analysis of the proposed budget shows that the government's total recurrent expenditure has been estimated at Tk 5.51 crore for FY27, with around 16.2 percent of the amount set aside for salaries and allowances of government employees.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday unveiled sweeping tax, VAT and duty relief measures in the Tk 9,38,000 crore national budget for fiscal year 2026-27, targeting everything from daily staples and life-saving medicines to electric vehicles and semiconductors, in what the government described as a pro-people, investment-driven overhaul of the country's fiscal architecture. Presenting the budget in the Jatiya Sangsad, the minister said the reliefs were aimed at reducing the burden on ordinary citizens still reeling from years of high inflation, while simultaneously creating an environment conducive to private investment and employment generation. In the most sweeping consumer-facing measure, the government proposed reducing withholding (source) tax on 60 essential commodities, including rice, wheat, potatoes, onions, garlic, ginger, salt, sugar, edible oil, pulses, poultry, fish and dairy, from existing rates of 5%, 2% or 1% down to a flat 0.5%. The minister said unrelenting price hikes of basic goods in recent years had caused severe hardship and that the new government's electoral pledge demanded decisive action. He also proposed full withdrawal of the 5% regulatory duty on all types of spices and on date imports, which are widely consumed across the country. Healthcare For kidney patients, the budget proposes a complete waiver of the existing 15% VAT and 5% advance income tax on dialysis filters, which the government said would reduce the cost of each dialysis session by approximately Tk 800. Similarly, the 7.5% advance tax on blood tubing sets used in haemodialysis has been fully withdrawn. For cardiac and ophthalmic patients, the 10% VAT applied at the supplier level on imported heart rings or stents and intraocular lenses has been removed, a measure expected to reduce the price of each stent by around Tk 20,000 and each intraocular lens by approximately Tk 5,000. All taxes: customs duty, regulatory duty, supplementary duty and advance tax were proposed to be fully waived on 21 categories of special assistive devices for persons with disabilities, including mobility aids. The minister said the measure would improve quality of life and reduce financial burden on families. Import duty on mortuary chambers was proposed to be reduced sharply from 25% to 1%. Electric Vehicles In what the minister framed as a landmark push for environment-friendly transport, the budget proposed dramatically reducing the total tax incidence on imported electric vehicles (EVs). The aggregate tax burden on EVs currently at 93% is proposed to be cut to 64% for vehicles valued up to $25,000 and to 80% for those valued up to $50,000. All duties and taxes on imported EV chargers and charging stations were proposed to be fully withdrawn. For locally manufactured EVs, including four-wheelers, three-wheelers, electric buses and trucks, raw material and component imports would attract only a 3% customs duty, with all other levies waived through FY2030-31. Advance income tax on EV registration was also slashed dramatically, from a flat Tk 2 lakh to a tiered structure based on power capacity: Tk 25,000 for up to 200 KW, Tk 50,000 for up to 300 KW, Tk 75,000 for up to 400 KW, and Tk 1 lakh beyond that. Electric buses and trucks used for transporting students in educational institutions were proposed to be fully exempt from all duties and taxes until June 30, 2030. To incentivise solar power, a zero-tax rate was proposed for the solar electricity sector until 2035, with a 5% tax rebate for consumers paying solar power bills. Pharmaceuticals The budget proposed full withdrawal of import duties on 51 new raw materials used in manufacturing Active Pharmaceutical Ingredients (APIs), with the list expanded significantly to deepen Bangladesh's pharmaceutical self-sufficiency. A further 17 new basic raw materials for the pharmaceutical industry were added to the concessionary duty list at zero percent, to sustain the country's growing export performance in global medicine markets. Nine additional inputs used in manufacturing cancer drugs were included in the existing concessionary scheme under zero customs and VAT, aimed at making anti-cancer medicines more affordable domestically. The government also proposed continued tax support for the pharmaceutical sector as Bangladesh graduates from Least Developed Country (LDC) status, acknowledging competitive pressure in international markets. Technology In a major push to digitise the economy and make computing accessible, the budget proposed complete removal of all customs duty, regulatory duty, supplementary duty and VAT on laptops, desktop computers, servers, computer printers and computer monitors. SSD drives would have all levies waived except a 5% customs duty. Advance income tax on computer monitors, portable automatic data processing machines, flash memory and computer printers was proposed to be reduced from 5% to 2%. The government said these measures were intended to expand IT-sector employment and fulfil its commitment of raising the ICT sector's share of GDP to 10% within the next five years. The Tk 300 per SIM card tax, in force for years, was proposed to be fully scrapped, with the government estimating a Tk 1,200 crore revenue impact but noting that the existing roughly 50% effective tax rate on the telecom sector was far above global norms and was constraining digital inclusion. Mobile network service withholding tax was also cut from 12% to 10%. To attract investment into the high-value semiconductor design, testing and packaging sector, the budget proposed that all imports used in this industry be subjected to no more than 1% customs duty, with regulatory duty, supplementary duty, VAT and advance tax fully waived through June 30, 2031. Small and Medium Enterprises For small and medium enterprises, the budget proposed a complete turnover tax exemption on turnovers up to Tk 50 lakh, with the ceiling raised to Tk 70 lakh for women and persons with disabilities. All content creation income, from freelancing, digital content, and creative work, was proposed to be made fully VAT-exempt. Startup companies would also receive full 15% VAT exemption on their local services, imported services and premises rent until June 30, 2035. Turnover tax was proposed to be set at zero for startups, innovative ventures and technology-based businesses. Agriculture VAT at the trader level on all types of fertilisers used in agriculture was proposed to be fully waived. The 7.5% advance tax on pesticide imports at the import stage was also withdrawn entirely. Customs duty on zinc ash, the primary raw material for zinc sulphate fertiliser production was proposed to be reduced to zero, to enable local self-sufficiency in micronutrient fertiliser manufacturing. For poultry, dairy and fisheries feed manufacturers, three additional raw materials were added to the zero-rate concessionary list. Equipment and machinery for the poultry sector would also enjoy zero import duty on components. Import duty on infant food preparation materials was cut from 15% to 10%, with the government saying the move would make baby food more affordable for ordinary families. The concessionary duty regime for the shipbuilding and dredger industry was extended to June 30, 2030, to keep Bangladesh competitive in global maritime markets. Concessionary duty facilities on lithium-ion battery manufacturing, sodium-ion battery production and battery pack assembly were extended through FY2029-30. EV battery components and mounting brackets were included in the concessionary scheme until June 2028. To support the country's creative industries, the budget proposed removing the 5% regulatory duty on musical instruments including guitars, pianos and violins. Import duty on cinematographic cameras was cut from 15% to 5%, with all levies removed on camera and projector components to enable the production of internationally competitive films and content. Tobacco: Higher Prices The budget raised the minimum retail prices of cigarettes across all four tiers, to Tk 62, Tk 92, Tk 160 and Tk 210 per packet of 10 sticks respectively, with corresponding supplementary duty adjustments. New products including Nicotine Pouches (minimum retail price Tk 500 per 10 grams, 40% supplementary duty) and Heated Tobacco (Tk 210 per 10 sticks, 67% supplementary duty) were brought under a new tax regime. A Track and Trace system was proposed to monitor production and supply and curb illicit trade. Income Tax Relief The tax-free income threshold for individual taxpayers was raised from the existing Tk 3,50,000 to Tk 3,75,000 for FY2026-27 and FY2027-28, with a further step to Tk 4,00,000 in FY2028-29, and Tk 4,50,000 in FY2030-31. For women and senior citizens above 65, the ceiling would be higher still, reaching Tk 5,00,000 by FY2030-31. The minister also announced that a new progressive five-year income tax rate roadmap was being published to allow taxpayers to plan their finances with greater predictability. The minister said the cumulative effect of these reliefs would reduce production costs, lower consumer prices, attract fresh investment, and create new avenues of employment, particularly for young Bangladeshis. "Our tax policy is not merely a tool of revenue collection," Khosru said. "It is also an instrument of food security, energy security and environmental protection and above all, an expression of this government's commitment to a democratic, humane and inclusive economy."

Three more children have died with measles-like symptoms in  24 hours until 8:00am on Thursday, raising Bangladesh’s combined tally of confirmed and suspected measles-related deaths to 642. According to the Directorate General of Health Services (DGHS), the latest three deaths have been classified as suspected measles fatalities. With the latest update, the number of suspected measles deaths has risen to 550, while the number of laboratory-confirmed measles deaths remained unchanged at 92. A total of 1,110  new suspected measles cases were reported during the 24-hour period, taking the cumulative number of suspected cases nationwide to 83,139. Meanwhile, 132 new confirmed measles cases were recorded, bringing the total number of laboratory-confirmed infections to 10,059. Since March 15, a total of 68,056 patients with suspected measles have been hospitalised across the country, of whom 64,293 have recovered, according to DGHS data.    

Finance Minister Amir Khosru Mahmud Chowdhury is now unveiling the national budget – with an outlay of Tk 9.38 lakh crore – for the fiscal year 2026-27 in Parliament. He began presenting the annual financial statement at 3:05pm on Thursday after obtaining permission from Speaker Hafiz Uddin Ahmad. Diplomats and distinguished citizens are attending the budget session. Invited guests are listening to the finance minister’s budget speech from the VVIP and other visitors’ galleries. Cabinet approves proposed national budget for FY27 Cabinet Secretary Nasimul Ghani, Chief of Army Staff General Waker-Uz-Zaman, Chief of Naval Staff Admiral M Nazmul Hassan, Chief of Air Staff Air Chief Marshal Hasan Mahmood Khan, Attorney General Ruhul Quddus Kazal, Principal Secretary to the Prime Minister ABM Abdus Sattar, and Additional Press Secretary to the Prime Minister Atikur Rahman Rumon sat in the front row of the gallery to the Speaker’s right. Economist Dr Debapriya Bhattacharya, Dhaka South City Corporation Administrator Abdus Salam, Dhaka North City Corporation Administrator Safiqul Islam Khan, along with other senior government officials, were also present. Foreign diplomats, including British High Commissioner in Dhaka Sarah Cooke and European Union Ambassador Michael Miller, along with ambassadors and high commissioners from various countries, sat in the gallery to the Speaker’s left. Prime Minister’s advisers Ismail Zabihullah, Mahdi Amin, Zahed Ur Rahman, Rehan Asif Asad and SM Ziauddin Hyder were also in the VVIP gallery. Finance Minister enters House with budget briefcase Earlier, President Mohammed Shahabuddin authenticated the budget around 2:30pm, said his Press Secretary Sarwar Alam. Before that, the Cabinet approved the proposed national budget at a special meeting held at the Cabinet Room of the Jatiya Sangsad Bhaban with Prime Minister Tarique Rahman in the chair. The finance minister, and other ministers and state ministers attended the meeting that began at about 10:00am and ended around 1:00pm. This year’s budget is expected to focus on controlling inflation, generating employment, encouraging investment, strengthening economic stability and supporting lower-income and disadvantaged groups, according to the finance minister and government officials. The government has set an overall revenue mobilisation target of Tk 6.95 lakh crore to finance the expenditure programme. Of the total revenue target, the National Board of Revenue (NBR) is expected to collect Tk 6.04 lakh crore. Another Tk 25,000 crore is projected to come from non-NBR tax sources, while non-tax revenue receipts are estimated at Tk 66,000 crore. A significant portion of the budget will be spent on debt servicing. The government has allocated Tk 1.27 lakh crore for interest payments, including Tk 1.05 lakh crore for domestic debt and Tk 22,500 crore for foreign loans. The proposed budget projects an overall deficit of Tk 2.43 lakh crore. To finance the deficit, the government plans to borrow Tk 1.09 lakh crore from external sources and Tk 1.12 lakh crore from the banking system. The remaining Tk 15,000 crore is expected to be mobilised through national savings certificates. With this, the BNP government is going to present a national budget in Parliament after for 20 years following its return to power with a majority in the 13th parliamentary election. The last budget presented by a BNP government was for FY 2006-07, when then Finance Minister M Saifur Rahman placed the budget in Parliament during the administration of former Prime Minister Khaleda Zia. Bangladesh’s budget journey began in 1972 when Finance Minister Tajuddin Ahmad presented the country's first national budget worth Tk 786 crore. Since then, successive governments have used the annual budget as the principal instrument for implementing economic and development policies. The FY27 budget comes in a changed political environment following the July 2024 uprising and the subsequent political transition that paved the way for the 13th parliamentary election and the formation of an elected government. Last year, the budget was presented outside Parliament by Finance Adviser Salehuddin Ahmed of the interim government, led by Prof Muhammad Yunus, and broadcast through state-run Bangladesh Television (BTV). The proposed new budget is expected to be passed by Parliament on June 30 and will take effect from July 1, the first day of the new fiscal year.  

An elderly man who was left stranded at no man’s land along the Bangladesh-India border in Jamalpur’s Bakshiganj upazila has been identified as a Bangladeshi citizen and rescued, police and Border Guard Bangladesh (BGB) said on Thursday. The man has been identified as Sosti Chandra Bormon, 68, son of Babu Chandra Bormon of Chandlai village under Godagari upazila in Rajshahi district. The elderly man was rescued early Thursday by BGB personnel after he remained stranded for around 24 hours in the no-man’s land near international pillar No. 1082 in Ramrampur area under Kamalpur border outpost, said  Officer-in-Charge of Bakshiganj Police Station Md Mokbul Hossain. He said the man’s national identity card has been verified, he added. He was later taken into custody at Bakshiganj Police Station.  Earlier on Wednesday morning, BSF attempted to push him into Bangladesh through the Ramrampur border area, triggering a tense situation involving local residents, BGB and India’s Border Security Force (BSF). His photograph had gone viral on social media and in the media, prompting family members to contact BGB and confirm his identity. The OC said his relatives from Rajshahi are already on their way to receive him, and the necessary legal procedures would be followed before handing him over to his family.  

Finance and Planning Minister Amir Khosru Mahmud Chowdhury entered the Parliament chamber carrying a black briefcase on Thursday afternoon ahead of placing the national budget for the 2026-27 fiscal year. The briefcase contained the budget documents and the Finance Bill of the BNP-led government. A few minutes before 3:00pm, the Finance Minister entered the House alongside Prime Minister Tarique Rahman. As they walked into the chamber, photojournalists captured the moment with a flurry of camera clicks. Lawmakers from both the treasury and opposition benches welcomed the Finance Minister by thumping their desks. Dressed in a navy-blue suit and blue tie, Amir Khosru appeared relaxed and smiling as he took his seat in the front row of the treasury bench. His seat is next to that of LGRD and Cooperatives Minister Mirza Fakhrul Islam Alamgir and close to the Prime Minister’s seat. Earlier in the day, the Cabinet approved the proposed national budget at a special meeting held at the Jatiya Sangsad Bhaban. The meeting was chaired by Prime Minister Tarique Rahman in the Cabinet Room of the Jatiya Sangsad. This is the first budget of the Tarique Rahman government, which assumed office on February 17 after the BNP secured an absolute majority in the 13th parliamentary election. The proposed budget, with an outlay of Tk 9.38 lakh crore, is also the first national budget to be presented by a BNP-led government in nearly two decades. The last budget presented by a BNP government was for FY2006-07, when late Finance Minister M Saifur Rahman placed the budget in Parliament during the administration of former Prime Minister Khaleda Zia. The FY2026-27 budget comes in a changed political environment following the July 2024 uprising and the subsequent political transition that paved the way for the 13th parliamentary election and the formation of an elected government. According to government sources, the proposed budget is expected to focus on curbing inflation, creating jobs, encouraging investment, strengthening economic stability and supporting lower-income and disadvantaged groups.

Two construction workers died from electrocution while working at Sadar Hospital in Bandarban district on Thursday. The deceased were identified as Md Sakib, 20, and Quamrul Hasan, 35, from Char Fasson upazila in Bhola district. Abdul Mannan Ansari, assistant director of the Bandarban Fire Service and Civil Defence, said the two construction workers died on the spot after coming into contact with a live electric wire while working on the hospital's service building. On information, a firefighting unit rushed to the spot and recovered the bodies.  

Bangladesh Meteorological Department (BMD) has forecast light to moderate rain or thundershowers, accompanied by temporary gusty winds and lightning flashes  in many places over the country in 24 hours commencing 9 am on Thursday. “Light to moderate rain or thunder showers accompanied by temporary gusty wind and lightning flashes is likely to occur at many places over Rangpur, Rajshahi, Mymensingh, Dhaka, Chattogram and Sylhet divisions and at a few places over Khulna and Barishal divisions with moderately heavy to heavy falls at places over the country,” said a regular bulletin of Met office. Day temperature may remain nearly unchanged and night temperature may rise slightly over the country.