United News of Bangladesh

The government has allocated for the Defence Ministry of Tk 40,698 crore in the proposed budget for fiscal year 2025-26, about 3.1% lower than the last one.. Finance Adviser Salehuddin Ahmed on Monday proposed the allocation while delivering his budget speech. Of the proposed amount, Tk 38,728 crore has been allocated for the three defence services, Tk 1923 crore for other services and Tk 47 crore has been allocated for the Armed Forces Division, he said. Proposed budget ‘exceptional’, says Finance Adviser An amount of Tk 42,014 crore was proposed for the defence services, other services and Armed Forces Division under the Defence Ministry in the national budget for FY 2024-25.

Finance Adviser Salehuddin Ahmed in the budget speech on Monday proposed complete withdrawal import duties on 110 products and lessening of import duties on 65 products ahead of trade talks with the US. “As part of preparations for trade dialogue with the United States, it has been proposed to completely withdraw import duties on 110 products and reduce import duties on 65 products,” said the Finance Adviser in his pre-recorded televised budget speech. Earlier, on April 30, Salehuddin said Bangladesh would engage in negotiations with the United States over retaliatory tariffs, emphasising that efforts would be made to avoid any actions that could escalate tensions. “There are 90 days to resolve the issue through discussions. If necessary, we will seek an extension,” he stated while addressing the 45th meeting of the budget consultative committee, organised by the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at a city hotel. Interim govt to rely more on bank loans to meet budget deficit According to NBR sources, around 2,500 products are imported annually from the United States. In 2024, Bangladesh imported products worth $2.62 billion from the United States, covering 2,515 items under the HS Code, according to NBR data.  

The government has proposed a cut in land registration costs in the 2025–26 fiscal year budget aiming to ease the financial burden on property buyers. Depending on the area, registration fees have been reduced by up to 2 percent For example, registering land worth Tk 1 lakh will now cost up to Tk 2,000 less. Finance Adviser Dr. Salehuddin Ahmed made the announcement while presenting the national budget on Monday. As part of broader land reform measures, registration fees and taxes will now be calculated per decimal instead of per katha. Moreover, the capital gains tax on land transfers has been reduced. Based on location, the tax will now be 6 percent, 4 percent, and 3 percent — down from the previous rates of 8 percent 6 percent and 4 percent. Interim govt to rely more on bank loans to meet budget deficit The government has proposed a Tk 790, 000 crore budget, a fall by Tk 7, 000 crore compared to the 2024-25 fiscal's budget, marking the first time in Bangladesh's history that the size of the budget has decreased. GDP growth is projected at 5.6 percent, with a budget deficit of Tk 2, 66, 000 crore. Inflation is expected at 6.5 percent and the ADP allocation stands at Tk 2,30,000 crore.

Finance Adviser Dr Salehuddin Ahmed on Monday proposed to continue the opportunity to legalize undisclosed income — commonly referred to as black money — through investment in the real estate sector, including purchasing apartments or flats and constructing buildings. Although the facility remains in place, the tax rates have been significantly increased compared to previous years, as announced in the FY2025–26 budget. According to the proposal, the tax rates for whitening black money through real estate investments vary by location and property size. Key highlights include: Tk 2,000 per square foot for buildings/apartments with a plinth area over 2,000 sq ft in Gulshan, Banani, Baridhara, Motijheel, and Dilkusha areas of Dhaka.Tk 1,800 per square foot for similar properties in Dhanmondi, DOHS, Mohakhali, Lalmatia, Uttara, Bashundhara, Cantonment, Siddheswari, Karwan Bazar, Banasree, Bijoynagar, Wari, Segunbagicha, Nikunja (Dhaka) and Panchlaish, Khulshi, Agrabad, Nasirabad (Chattogram). Govt scraps black money whitening facilityTk 1,500 and Tk 600 per square foot for buildings below 2,000 sq ft in these areas, respectively.For other city corporation areas: Tk 700 per sq ft (over 1,500 sq ft)Tk 600 per sq ft (up to 1,500 sq ft)For district municipalities: Tk 300 per sq ft (over 1,500 sq ft)Tk 250 per sq ft (up to 1,500 sq ft)For other areas of the country: Tk 150 per sq ft (over 1,500 sq ft)Tk 100 per sq ft (up to 1,500 sq ft)Besides, for new building construction, taxes ranging from Tk 50 to Tk 900 per square foot have been proposed, depending on location. But, two conditions have been outlined, which are Black money cannot be legalized if it originates from any criminal activities under existing laws and it must arise from a legitimate source of income, albeit undisclosed. Interim govt decides to stop provision of whitening black money The interim government had previously abolished the black money whitening provision introduced by the Awami League government. That earlier facility allowed legalisation of black money through investment in land, flats, plots, and cash with lower tax rates, which drew sharp criticism for being unfair to compliant taxpayers. Despite recurrent offers by successive governments over the years, the response to black money whitening schemes has remained limited, with critics arguing that such measures undermine ethical taxpayers and encourage illicit financial practices.

In a significant move to accelerate the growth of the cottage, micro, small and medium enterprises (CMSME) sector, the government has launched an ambitious three-year development plan aiming to foster entrepreneurship, enhance skills, and strengthen market access, with a special focus on women entrepreneurs. As part of the initiative, 15,000 new entrepreneurs are set to be created by 2028. In addition, 25,000 existing and aspiring entrepreneurs will receive skill development and technical training to enhance their competitiveness and business capacity. Finance Adviser Dr Salehuddin Ahmed said this during his televised budget speech for the next 2025-26 fiscal. To improve visibility and market access for locally produced SME goods, the government plans to set up SME product display and sales centers in all divisional cities. Furthermore, the Adviser said, regional SME product fairs will be organized in various districts to promote regional products and foster linkages between producers and consumers. A central database of CMSME entrepreneurs will also be established to improve policy formulation, access to finance, and service delivery. In a major financial boost, Tk 1,000 crore will be disbursed in loans to 10,000 entrepreneurs from marginal segments of the CMSME sector, including a significant share allocated to women entrepreneurs. A key component of the plan is the digital empowerment of women in business. Through targeted digital platforms, 3,000 women entrepreneurs will be connected directly with corporate buyers, enabling better market reach and sustainable business growth. Meanwhile, the Adviser said that Cottage, small and medium enterprises (CSMEs) now contribute approximately 11.89% to Bangladesh’s GDP, according to estimates for the fiscal year 2023–24, reflecting the sector’s growing significance in driving economic growth and employment. To unlock the full potential of this vital sector, the government has undertaken a wide range of initiatives aimed at enhancing entrepreneurial skills and improving the overall business environment. A key focus of these efforts is to expand access to finance for marginal and underserved entrepreneurs. Under the credit wholesale programme, low-interest loans are being disbursed, with at least 23% of these loans allocated to women entrepreneurs. To further strengthen support for SMEs, the government is actively updating cluster mapping and demand assessment strategies to ensure better-targeted assistance. Skill development programs are being conducted through incubation centers, where entrepreneurs receive training in business management and operational excellence. In addition, SME product fairs are being organized across the country to help entrepreneurs showcase their products, expand market reach, and build networks with buyers and investors. To promote gender-inclusive finance, all lending institutions have been instructed to ensure that at least 15% of their SME loan portfolio is allocated to women entrepreneurs. Moreover, the government is offering a 1% incentive to both women entrepreneurs and financial institutions for timely loan repayment, encouraging a culture of credit discipline and responsible financing.

Finance Adviser Dr Salehuddin Ahmed said on Monday said the interim government is taking steps to build a skilled youth workforce and promote self-employment by tapping into their vast energy and potential. “We are working to develop a pool of skilled youth and create self-employment opportunities by utilising their immense energy and potential,” he said while presenting the proposed national budget for the fiscal year 2025-26. He said the ‘Tarunyer Utshob (Youth Festival) 2025’ has been celebrated with huge enthusiasm around the theme 'Let's change the country, change the world'. “To create self-employment, the ceiling of youth loans given to trained youths across the country has been increased to a maximum of Tk 2,00,000.” 10 new economic zones to come up in 10 years: Finance Adviser The adviser said the loan ceiling for successful young entrepreneurs has been increased to Tk 5,00,000. “Besides, I propose to create a new fund of Tk 100 crore for the young entrepreneurs. This is the first time such a fund is going to be created.” Besides, Salehuddin said a project has been undertaken to create employment opportunities by providing training and credit facilities to 9 lakh youths by December 2028. “Self-employment generating projects have also been undertaken for the family members of the injured and martyrs of the July Mass Uprising.” From January 2025, he said freelancing training activities have been started for 28,800 educated and job-seeking youths in 48 districts of the country. “To involve the youth more deeply in the process of development of the country, I propose to allocate Tk 100 crore for the celebration of ‘Tarunyer Utshob (Youth Festival)' in the next fiscal year.” To make the young people of the country ready to meet the demand of the domestic and global market, the adviser said steps have been taken to provide world-class technical training certificates by developing a technical training curriculum. “Besides, activities are underway to establish linkages between industries, training institutes and academia to ensure job placement through demand assessment, curriculum development based on that demand and providing education/training according to the curriculum,” he said. Finance adviser introduces new tariff, SD structure with eye on US trade deal To continue the growing trend of developing skilled human resources, Salehuddin said a special program is being implemented to connect export-oriented and small and medium industries with global high value chains and increase their competitiveness. “Through this program about 2,20,000 people will be trained in different professions.”

In a reshuffle in judiciary, the government has transferred a total of 252 lower court judges. The Law Ministry issued a notification in this regard on Monday. Among them, 30 are District and Sessions Judges, 38 are Additional District and Sessions Judges and 22 are Joint District and Sessions Judges and 162 are Senior Assistant Judges. Besides, the government has promoted 12 Senior Assistant Judges to Joint District and Sessions Judge.  

Finance Adviser Dr Salehuddin Ahmed on Monday unveiled the proposed national budget for 2025-26 fiscal year, changing VAT and duties on different products, which would lead to fluctuations in the prices of some goods and services. Since the taxes and duties proposed in the budget become effective immediately, the prices of particular goods and services go up if the taxes are increased. The Finance Adviser unveiled the national budget for the 2025–26 fiscal year through the state-owned Bangladesh Television (BTV) and Bangladesh Betar. Prices Up The products and services which would be costlier include – all types of tableware, kitchenware, household goods, hygienic and toiletries including any similar products made of plastic, cotton yarn, yarn made of man-made fibre and other fibres, blades, screws, joints (connectors), nuts, bolts, electric line hardware and pole fittings including nails and bait, mobile phones, elevators, washing machines, microwave ovens and electric ovens, and electric ovens, blenders, juicers, mixers, grinders, electric kettles, irons, rice cookers, multicookers and pressure cookers and construction company services. Mobile and internet costs to fall in new budget Price Down The goods which would be cheaper include sanitary napkins, diapers, packaged liquid milk and ballpoint pens; ice cream, computer monitors, liquefied natural gas (LNG), all types of handicrafts/utensils including plates, bowls made of leaves, flowers or bark, handmade clay utensils and textile grade pet chips.

The government has proposed a special tax rate in the national budget for FY2025-26 to encourage listing of profitable and reputed companies -- both local and foreign -- in the country’s stock market. In his budget speech on Monday, Financial Adviser Dr Salehuddin Ahmed said the gap between the corporate tax rates of listed and non-listed companies will be widened to attract well-performing firms to the capital market. While the difference in tax rates currently stands at 5 percent, the new budget proposes to increase it to 7.5 percent. IBFB urges government to reduce corporate tax rate To further boost investment and trading in the capital market, the government has also proposed reducing the tax collected at source from brokerage houses on the total value of securities transactions-- from 0.05 percent to 0.03 percent. The budget also proposes an increase in the tax deducted at source on interest income from securities. This rate, which is currently 5 percent, will be raised to 10 percent in the next fiscal year. The government hopes these measures will encourage quality listings and increased participation in the stock market while also ensuring fair revenue collection.