United News of Bangladesh

As the prices of and taxes on all tiers of cigarettes in the proposed 2025-26 FY budget have been kept unchanged, it will deprive the government of additional revenue worth at least BDT 20,000 crore and encourage the youth to 'light up', according to anti-tobacco activists. They have long been suggesting that the government must raise the prices of all tiers of cigarettes and particularly, must merge the low and medium tiers of cigarettes, constituting 80 percent of current cigarette market in Bangladesh, into a new tier with the minimum retail price (MRP) of TK 90 for 10 sticks. The proposed budget has kept the prices of bidi unchanged for the 6th consecutive time. The supplementary duty on bidi has also remained the same for the 10th consecutive time, which is also another frustrating aspect. The prices of and taxes on smokeless tobacco products, i.e., jarda and gul, has also been unchanged. Budget FY 24-25: Tobacco prices to go up This is quite concerning to groups like PROGGA (Knowledge for Progress), who are staunch anti-tobacco activists, as more than 50 percent of all tobacco users consume smokeless tobacco products, with the poor and the women being the majority of them. Once the inflation and increase in per capita income are taken into account, these deadly products will become cheaper and more affordable. This will encourage the poor, particularly the women, more into using smokeless tobacco products, thus increasing health risks involved. The advance tax on net sale price of cigarette manufacturers has been raised to 5 percent from existing 3 percent in the proposed budget. The supplementary duty on cigarette paper imported by commercial importers has also been raised to 300 percent from existing 150 percent. While these steps are undoubtedly positive, these fall short of being sufficient to safeguard public health. In his reaction to the proposed budget, ABM Zubair, Executive Director, PROGGA, said, "Tobacco claims 442 lives each day in Bangladesh. The proposals put forth by anti-tobacco activists, if realized, would reduce tobacco use and tobacco-related deaths and raise revenue earnings of the government." The prevalence of tobacco use among adults (15 y/o and above) stands at 35.3 percent. If the finalized budget reflects the proposals of anti-tobacco activists, it would help the government earn additional revenue and prevent the premature death of 1.7 million people, including 900,000 youth. Dhaka, Jun 2 (UNB) - As the prices of and taxes on all tiers of cigarettes in the proposed 2025-26 FY budget have been kept unchanged, it will deprive the government of additional revenue worth at least BDT 20,000 crore and encourage the youth to 'light up', according to anti-tobacco activists. They have long been suggesting that the government must raise the prices of all tiers of cigarettes and particularly, must merge the low and medium tiers of cigarettes, constituting 80 percent of current cigarette market in Bangladesh, into a new tier with the minimum retail price (MRP) of TK 90 for 10 sticks. The proposed budget has kept the prices of bidi unchanged for the 6th consecutive time. The supplementary duty on bidi has also remained the same for the 10th consecutive time, which is also another frustrating aspect. The prices of and taxes on smokeless tobacco products, i.e., jarda and gul, has also been unchanged. Budget FY 24-25: Tobacco prices to go up This is quite concerning to groups like PROGGA (Knowledge for Progress), who are staunch anti-tobacco activists, as more than 50 percent of all tobacco users consume smokeless tobacco products, with the poor and the women being the majority of them. Once the inflation and increase in per capita income are taken into account, these deadly products will become cheaper and more affordable. This will encourage the poor, particularly the women, more into using smokeless tobacco products, thus increasing health risks involved. The advance tax on net sale price of cigarette manufacturers has been raised to 5 percent from existing 3 percent in the proposed budget. The supplementary duty on cigarette paper imported by commercial importers has also been raised to 300 percent from existing 150 percent. While these steps are undoubtedly positive, these fall short of being sufficient to safeguard public health. In his reaction to the proposed budget, ABM Zubair, Executive Director, PROGGA, said, "Tobacco claims 442 lives each day in Bangladesh. The proposals put forth by anti-tobacco activists, if realized, would reduce tobacco use and tobacco-related deaths and raise revenue earnings of the government." The prevalence of tobacco use among adults (15 y/o and above) stands at 35.3 percent. If the finalized budget reflects the proposals of anti-tobacco activists, it would help the government earn additional revenue and prevent the premature death of 1.7 million people, including 900,000 youth.

The interim government has decided to significantly increase its reliance on domestic sources, particularly bank loans, to finance the budget deficit for the upcoming FY2025- 26. The proposed national budget slashes borrowing targets from foreign sources and savings certificates, instead aiming to collect Tk1.04 lakh crore from the banking sector, marking an almost 5 percent increase from the revised target of Tk99 thousand crore in FY2024-25. The budget for FY2025-26 was presented on Monday by Finance Advisor Salehuddin Ahmed in a pre-recorded televised address on Monday. The fiscal year begins on July 1. According to the budget presentation, the total budget deficit for the upcoming fiscal year is projected to be Tk 2.21 lakh crore. Of this, 47 percent is planned to be covered through bank borrowing, an increase from 44 percent in the last fiscal year. In the first ten months of the current fiscal year (up to May 12), the government's net bank borrowing stood at Tk56116 crore, which is 56.68 percent of the revised target. Officials antedate that the net borrowing will remain within the set limit by the end of the current fiscal year. No major bank loan or money printing for budget: Finance Adviser Conversely, the target for foreign borrowing has been reduced. As per the proposed budget, the government plans to borrow Tk96 thousand crore from external sources in FY2025-26, which is approximately 8.2 percent lower than the revised target of Tk 1.04 lakh crore for the current fiscal year. Similarly, the government has trimmed its borrowing plans from national savings certificates. The target for the new fiscal year from this sector is set at Tk 12500 crore, a 10.7 percent reduction compared to the current year's revised target.

The interim government has decided to set up ten economic zones in the next ten years aiming to generate employment.   Of the ten, the following five will be implemented within the next five years: National Special Economic Zone, Srihatta Economic Zone, Jamalpur Economic Zone, Moheshkhali Economic Zone3 (Dhalghata) and Bangladesh Special Economic Zone. The Chinese Industrial Economic Zone, Sabrang Tourism Park, Chandpur Economic Zone-1, Kushtia Economic Zone and Kurigram Economic Zone are expected to become operational in the next ten years. Finance Adviser Dr Salehuddin Ahmed made the announcement while delivering his televised budget speech for the next 2025-26 fiscal. He said that management and operation of Private Export Processing Zones (EPZ) has been entrusted to Bangladesh Economic Zones Authority (BEZA) and the long-running land related complications in Korean EPZ have been resolved. “A pipeline of investors is being formed to increase foreign investment. By this, the investment commitment will be converted into real investment through systematic tracking,” he said. He said that Bangladesh Investment Development Authority (BIDA) has already published the FDI Heatmap. Besides, he said, we are paying special attention to encourage the implementation of investment projects through public-private partnership in the potential sectors of the country. “For this purpose, I propose to allocate Tk 5,040 crore as public-private partnership fund in the next fiscal year. Appropriate initiatives are being taken to make public investment more effective, sustainable and fruitful.” In the meantime, the Adviser said a number of projects that are less important or taken under political consideration have been dropped. Govt working with ILO for decent condition of labours in EPZs: Lutfey Siddiqi To evaluate important infrastructure investment projects in the 'Transport and Connectivity' and 'Environment, Climate and Water Resources' sectors, financial and economic analysis is being done to determine the cost of the project and determine the potential benefits, he said. In addition, he said, the projects are being evaluated during the project preparation stage to determine their environmental impact and resilience against climate change. In addition, the Multi-Year Public Investment Program (MYPIP) has been formulated in coordination with the Medium-Term Budget Framework (MTBF) to increase efficiency and effectiveness of public investment and achieve the goals and objectives of the adopted national plans and SDGs, he added.

Finance Adviser Dr Salheuddin Ahmed on Monday proposed creation a new fund of Tk 100 crore for the young entrepreneurs. “This is the first time such a fund is going to be created,”.said the adviser while delivering his budget speech on Monday. Besides, a project has been undertaken to create employment opportunities by providing training and credit facilities to 9 lakh youths by December 2028, he said. He said 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, freelancing training activities have been started for 28,800 educated and job-seeking youths in 48 districts of the country. Govt moves to cut prices of cancer, other medicines He also proposed to allocate Tk 100 crore for the celebration of ‘Tarunyer Utshob (Youth Festival)' in the next fiscal year. He 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,” said the adviser.

The prices of tobacco products – cigarette and other smokeless products—have gone slightly up in the proposed national budget for 2025-2026 fiscal year due to new customs duties on tobacco seeds and higher supplementary duties on certain raw materials used in tobacco product manufacturing. The proposal was placed by Finance Adviser Salehuddin Ahmed during the budget presentation on Monday. “Tobacco products like cigarettes and smokeless tobacco such as jorda and gul pose serious risks to public health. Although high duties are already in place on their imports, the current 0% customs duty on tobacco seed imports is inconsistent with public health goals,” said the adviser. Delay in Tobacco Control law amendment escalates fatalities, economic losses: experts He proposed creating a new HS Code for tobacco seeds to replace the existing classification, allowing a 25% customs duty to be imposed in order to discourage tobacco cultivation. Besides, the government-formed investigation committee has submitted a report on tax evasion related to tobacco products. The report recommends discouraging commercial imports of raw materials used in cigarette production. Based on the report, it has been proposed that the existing tax and duty rates on raw materials used in cigarette production be tripled for manufacturers. As per the recommendations, a 100% supplementary duty will be imposed on the import of paper used in cigarette production by manufacturing companies. For commercial importers, the supplementary duty on such paper could go as high as 350%. Currently, no supplementary duty is applied on the import of acetate tow and acetate filter rods used in cigarette manufacturing by producers. However, the government is reviewing the possibility of changes in this area as well.    

The interim government has introduced a new tier in the import duty structure for the upcoming 2025–26 fiscal year. Finance Adviser Dr. Salehuddin Ahmed, in his televised budget speech on Monday, announced that the existing six-tier customs duty structure will be reorganized by adding a new tier with a 3% duty rate. Additionally, a new 40% supplementary duty rate has been proposed, expanding the current twelve-tier supplementary duty structure. To protect consumers, the adviser confirmed that zero-tariff rates will remain unchanged for essential items such as major food products, fertilizers, seeds, life-saving medicines, cotton, and raw materials used in certain industries. Govt now focused on laying strong foundation of economy: Finance Adviser As part of a broader strategy to gradually reduce trade barriers and prepare for upcoming trade dialogue with the United States, the government has proposed several duty adjustments: Import duties on 110 products will be fully withdrawn. Import duties on 65 products will be reduced. Supplementary duties on 9 products will be entirely removed. Supplementary duties on 442 products will be reduced. “These changes are aimed at easing the tax burden on citizens and reducing the anti-export bias,” Dr. Ahmed said.

The proposed national budget for the fiscal year 2025–26 includes a reduction in source taxes on mobile operator services and internet usage, paving the way for lower consumer expenses in these sectors. While presenting the new budget on Monday, Finance Adviser Salehuddin Ahmed announced a reduction in source tax on internet services from 10 percent to 5 percent. Besides, the turnover tax for mobile operators has been cut from 2 percent to 1.5 percent. These proposals have been introduced under the Finance Ordinance 2025, aimed at addressing inconsistencies in the tax structure and broadening the tax net. Bangladesh Submarine Cables reduces internet prices by 10% Despite the expected drop in mobile and internet costs, expenses related to Over-the-Top (OTT) platforms are set to increase. The proposed budget includes a definition for OTT services and imposes a 10 percent supplementary duty on such platforms. As a result, viewers will have to pay more to watch dramas, films and series on OTT services. Salehuddin emphasised that the budget size has been kept smaller to align with economic realities and reduce the deficit. The adviser also noted that there are efforts in the budget to provide some relief to lower-income groups amidst ongoing political unrest. As there is no parliament, the President is expected to sign the budget ordinance on June 30, with the new budget coming into effect from 1 July. Several elements of the budget, particularly those related to taxation and customs, will take effect from the day of its presentation on June 2.

Finance Adviser Salehuddin Ahmed on Monday proposed an allocation of Tk 100 crore to address the growing risks of climate change in the national budget for the fiscal year (FY) , keeping the allocation unchanged from last year. The adviser announced the budget allocation while unveiling the national budget for the 2025-2026. “I propose to allocate Tk 100 crore in the next fiscal year to take necessary actions considering the depth and seriousness of climate change risks,” he said. The pre-recorded budget speech was aired on Bangladesh Television (BTV) and Bangladesh Betar. According to the budget proposal, the allocation is aimed at implementing critical initiatives to mitigate the negative impacts of climate change. Climate change is shrinking glaciers faster than ever, with 7 trillion tons lost since 2000 These initiatives include enhancing women's capacity to adapt to climate-related challenges, assessing the state of coastal ecosystems, and strengthening the role of media in promoting climate resilience. Moreover, the Climate Change Trust Fund will continue to support efforts to prevent air, water, and soil pollution, improve waste management, promote environmental development, and enhance the healthcare sector’s ability to respond to climate-related issues.

The government has proposed a Tk 125 crore fund for women entrepreneurs in the national budget for the 2025-26 fiscal year, aiming to boost women’s participation in the economy. While placing the new budget on Monday, Finance Adviser Dr Salehuddin Ahmed said the fund would help improve the business environment for women and strengthen their economic empowerment. “To further support women entrepreneurs, I propose an allocation of Tk 125 crore,” he said during his budget speech. Highlighting initiatives for women’s safety and skill development, the adviser said the National Women Training and Development Academy is running skill-based programmes for women, especially through training centres at the upazila level. Speakers stress empowering women entrepreneurs for equitable society He said 20,000 women have already been trained under various government initiatives to enhance their skills, contributing to women's empowerment and poverty reduction. In a notable policy direction, Dr Salehuddin acknowledged the contribution of homemakers and said steps will be taken to evaluate and include their work in GDP in the future. “In addition to working women, I express my gratitude to homemakers. Necessary measures will be taken to quantify their contribution financially and include it in the GDP calculation,” he added. The adviser also said efforts are ongoing to bring back into the mainstream the children injured in the July Uprising.  The government has already provided financial assistance to 84 families who lost their children in the incident, he added.

Treatment of cancer and other complex diseases will be more affordable in the country as the government proposed expanding duty and tax exemptions on the import of raw materials used in the production of all types of medicines including cancer drugs. Financial Adviser Dr. Salehuddin Ahmed revealed the information while unveiling the budget  for 2025-26 FY in a televised speech on Monday. This move is expected to lower the consumer-level prices of life-saving medicines. National budget: Excise duty exemption on bank deposits raised to Tk3.0 lakh “To strengthen the domestic pharmaceutical industry and ensure life-saving drugs are available at affordable prices for the people, I propose expanding the facility of duty and tax exemptions on the import of raw materials and active pharmaceutical ingredients (APIs),” said the adviser. He said to improve healthcare services in the country, the budget proposes reducing import duties and taxes on medical equipment and devices used in referral hospitals and hospitals with more than 50 beds. This initiative is expected to pave the way for reaching advanced healthcare services to divisional and district levels across Bangladesh, he added.