United News of Bangladesh

In a move aimed at providing relief to the public and boosting bank deposits, the government has proposed raising the excise duty exemption limit on bank deposits to Tk 3.0 lakh in the budget of fiscal year 2025-26. Currently, an excise duty of BDT 150 is levied if a bank account balance exceeds Tk1.0 lakh at any point during a year. Under the proposed budget, account holders will only be subject to excise duty if their deposit balance surpasses Tk3.0 lakh. This change was announced by Finance Advisor  Salehuddin Ahmed during his budget speech on Monday. "To provide some relief to the public, VAT and excise duty exemptions have been granted in certain areas, excise duty exemption has been provided on bank balances up to Tk3.0 lakh instead of Tk1.0 lakh," said Salehuddin. Currently, the excise duty structure is as follows: For balances ranging from Tk1.0 lakh to Tk5.0 lakh, an excise duty of Tk150 is applied. For balances from Tk 5.0 lakh to Tk 10 lakh, the excise duty is Tk 500. These duties are levied if the bank account balance touches these respective tiers at least once annually. Sector-related individuals believe that this increased exemption threshold will encourage small depositors to utilize formal banking channels, thereby contributing to the overall growth of bank deposits.  

Food security is a major concern in this densely populated country, so the government increased budget allocation for agricultural imputes and subsidies to encourage production for 2025-26 fiscal year. The national budget for the fiscal year beginning July 1 was unveiled by Finance Adviser Salehuddin Ahmed in a televised speech on Monday. To increase agricultural production, activities are underway to develop climate-resilient crop varieties and improved farming technology, supply of agricultural inputs at affordable prices, expansion of irrigation areas, development of marketing system, agricultural mechanization, etc. Subsidies are being provided where necessary. Exports of agricultural products are also encouraged after meeting the domestic demand. In the current fiscal year, agricultural inputs and cash incentives have been provided under the 'Agricultural Rehabilitation Assistance’ programme. Small and marginal farmers affected by floods have also been provided assistance from this program. To ensure adequate supply of emergency agricultural inputs like fertilizers, our government has expedited the payment of subsidies for both imported and domestically produced fertilizers covering the trade gap and the payment of arrears in fertilizer subsidies. Subsidies for fertilizers and agricultural inputs will be continued in the next fiscal year. No alternative to safe food to ensure nutrition for children: Speakers The interim government has taken initiatives to rationalise the use of chemical fertilisers and pesticides to protect biodiversity, maintain soil quality and keep the environment free from pollution. To increase the use of organic fertiliser, farmer groups and NGOs are also being involved in production, marketing and extension of organic fertilizers. The use of environment friendly technologies is being promoted to prevent the wastage of water during irrigation, better use of surface water and sustainable use of ground water. To strengthen the overall agricultural production system, including prevention of post-harvest wastage different initiatives have been taken, such as - strengthening cold storage and cold chain infrastructures with packaging, developing agricultural transportation system, creating a comprehensive database of stakeholders in the agriculture supply chain, establishing specialized agro-processing zones, developing port infrastructure for export of agricultural products, etc. In addition, 59 issues hindering agricultural exports have been identified, and steps have been taken to resolve them. To ensure food security as well as safe food, various initiatives like purchase of paddy directly from farmers in all upazilas through ‘Krishoker App (Farmers’ App)’, raise awareness, provide training to ensure safe food and instant sample testing through mobile laboratories are underway. Safe food crucial for hypertension control: Experts In addition, an action plan has been taken to increase the capacity of food warehouses to 37 lakh metric tons and increase the institutional capacity of tonnage and food grain management in the next fiscal year.

The government will allocate Tk 41,908 crore for the Ministry of Health and Family Welfare in the upcoming fiscal year 2025-26, marking a modest increase aimed at strengthening the country’s healthcare system. Finance Advisor Salehuddin Ahmed presented the proposed budget for the 2025-26 fiscal year in a speech broadcast by state-run BTV on Monday. In the budget of FY2024-25, the allocation was Tk 41,407 crore. In the budget speech the Finance Adviser said building a healthy, strong and productive population by providing affordable and quality health, nutrition and family welfare services to people is a prerequisite for national development. He said to bring all the citizens under universal health coverage by 2030, special emphasis has been given on expanding the scope of services, infrastructure development and recruitment of skilled human resources. To fill the vacancies in the health sector, the recruitment of doctors, nurses, technicians, pharmacists and health assistants has been accelerated, and an integrated plan has been taken to create necessary posts. Initiatives have been taken to recruit, said the adviser. The Finance Adviser said to harness the benefits of demographic dividend and build a prosperous Bangladesh through the development and planned management of the population, the ‘Bangladesh Population Policy 2025’ is being formulated by updating the existing population policy. Besides, the formulation of the ‘Bangladesh National Family Planning Strategy Paper 2025-2030’ is in the final stage to achieve zero maternal deaths that are preventable and zero gender-based violence by 2030, he added.

Finance Adviser Dr Salehuddin Ahmed in his budget speech proposed no change in tax-free income thresholds for the upcoming fiscal year, but suggested changes in caps for the assessment years 2026-2027 and 2027-2028. “In line with international best practices and considering factors such as the promotion of trade and commerce, enhancement of investor confidence, and policy certainty, prospective tax rates and surcharges for the FY 2025-26 assessment year were determined through the Finance Act, 2024. In continuation of this, the Finance Ordinance, 2025 has set the tax rates and surcharges for the assessment years 2026-2027 and 2027-2028,” he said. As a result, he said, taxpayers will be able to have a clear understanding in advance of the applicable tax rates for the three assessment years 2025-2026, 2026-2027, and 2027-2028, he added The Finance Adviser on Monday unveiled the national budget for the 2025–26 fiscal year through the state-owned Bangladesh Television (BTV) and Bangladesh Betar. Private television channels and radio stations are relaying the speech simultaneously by taking the feed from BTV. “At present, the tax-free income threshold for individual taxpayers is Tk 350,000. To reduce the tax burden on low-income groups, ensure social protection and fairness, and keep pace with inflation, the tax-free income threshold for individual taxpayers has been increased to TK 375,000 for the assessment years 2026-2027 and 2027-2028,” he said in his speech. Online income tax returns submission gets huge response: NBR For gazetted ‘July Warriors’, injured in the July Mass Uprising 2024, the tax-free income limit has been set at TK 525,000, he added. The tax-free income threshold for the women; and senior citizen aged 65 years or above has been increased to Tk 425,000 for the assessment years 2026-2027 and 2027-2028 from the existing Tk 400,000, while that for physically challenged persons and third gender taxpayers has been set at Tk 500,000 from Tk 475,000. The income tax-free threshold would be increased for parents or legal guardians of each physically challenged child/adopted child by Tk 50,000. If both the parents of a physically challenged child are taxpayers, either of the parents will be entitled to avail the facility. The tax-free threshold for gazetted war wounded freedom fighters has been enhanced to Tk 525,000 for the assessment years 2026-2027 and 2027-2028 from the existing Tk 500,000. So, the tax rate will be zero for upto Tk 350,000 income for the assessment year of 2025-26; while the rate will be 5 percent for the next Tk 100,000 income; 10 percent for next Tk 400,000; 15 percent for next Tk 500,000; 20 percent for next Tk 500,000; 25 percent for next Tk 20,00,000; and 30 percent on balance. For the assessment years of 2026-27 and 2027-28, the tax rate will be zero for upto Tk 375,000 income; while the rate will be 10 percent for the next Tk 300,000 income; 15 percent for next Tk 400,000; 20 percent for next Tk 500,000; 25 percent for next Tk 20,00,000; and 30 percent on balance. The Finance Adviser said currently the minimum tax payable by individual and Hindu undivided family taxpayers’ ranges from TK 3,000 to TK 5,000 depending on location. For the assessment years 2026-2027 and 2027-2028, if total income exceeds the tax-free limit, a flat minimum tax of Tk 5000 will apply regardless of location, he said. NBR extends income tax return submission deadline To foster a culture of tax compliance, expand the tax net and encourage new taxpayers, the minimum tax for new taxpayers has been set at TK 1,000, he added in budget speech.

Finance Adviser Dr Salehuddin Ahmed on Monday said the interim government is now focusing more on strengthening the foundation of economy instead of accelerating the pace of growth. “This strong foundation will serve as the steppingstone to build a resilient and sustainable future of Bangladesh,” he said in his televised budget speech. In just a few months, he claimed that the government has almost completed the task of stabilising the country by overcoming difficult challenges. Budget prioritises people over infrastructure: Finance Adviser “We still have a long way to go to reach the doorstep of complete success,” he said. He also said that Inflation has shown a declining trend in the recent months, but it is still not fully controlled. Prof Yunus opens dialogue with political parties The Finance Adviser mentioned that additional tariffs imposed by the US administration last April are also likely to have adverse impacts on country’s economy. “Moreover, he said, although the market-based exchange rate that has been introduced recently does not seem to pose any risk for the time being, we must watch it closely to avoid any shock. “ “Tackling all these risks and ensuring an equitable and sustainable foundation for the country's economy is now our top priority.” The Adviser said that the core objective of the interim government will be to ensure quality of life for all and a system based on non-discrimination at all levels in that future Bangladesh. He sought wholehearted cooperation from the people to achieve this goal. “Inshallah, with the sincere efforts of all of us, Bangladesh will be a beacon of inspiration for all who aspire for freedom,” he said.  

Detectives of Dhaka Metropolitan Police (DMP)  have arrested Chandpur District Awami League (AL) unit  President and former mayor of Chandpur Municipality, Nasir Uddin Ahmed, along with six other leaders of various affiliated bodies of the Bangladesh Awami League ruling party in overnight raids across the capital. According to the Detective Branch (DB) of Dhaka Metropolitan Police (DMP), the arrests were made in separate operations carried out between Sunday night and early Monday. The arrestees were identified as Women Affairs Secretary of Golachipa Upazila AL Wana Mirza Nitu,  Central Executive Member and Vice-President of Bangladesh Awami Swechchhasebak League Md Abdus Salam, 57,  President of Chandpur District AL and two-time former mayor of Chandpur Municipality  Nasir Uddin Ahmed, 70,  Former Relief and Social Welfare Secretary of Daudkandi Upazila AL Md Nasir Ahmed, 60,  Former Publicity Secretary of Ward-24 Lalbagh Thana AL (South Dhaka) Md Nurul Haque, 62,  and Secretary of Geneva Camp Bazar Unit AL  Mohammadpur Md Saeed alias Machhua Saeed, 54, said Deputy Commissioner (Media) of DMP Talebur Rahman. DB sources said Nitu was arrested around 1:30am on early Monday from Pirerbagh area in Mirpur by a team from the DB’s Motijheel Division. Meanwhile, Salam was picked up from the Uttara area around 12:30am by a team of DB’s Cyber and Special Crime Division.   Nasir Uddin  was detained around 8:15am Monday from the Shantinagar area by a team from the DB’s Gulshan Division. On Sunday night, Nurul  was arrested around 9:00pm from Lalbagh, Md Nasir at around 10:30pm from Pallabi, and Md Saeed alias Machhua Saeed around 11:45pm from Wari by a zonal team from the DB-Lalbagh Division. All of the arrestees are accused in specific cases filed with different police stations in the capital. They were allegedly involved in subversive activities aimed at destabilizing the country, including participating in sudden street processions to instill panic among the public.    

Vehicular movement on Dhaka-Aricha highway remained suspended for two hours on Monday as the workers of a garment factory blocked the highway at Hemayetpur in Savar on the outskirts of the capital demanding payment of salary and Eid bonus. The workers of Bashundhara garment workers of Nazimnagar area in Tetuljhara union took to the street around 9 am, halting vehicular movement, said Jewel Mia, officer-in-charge of Savar Police Station. A long tailback was created on both sides of the highway, causing immense sufferings to the commuters. On information, police rushed to the spot and lobbed tear gas shells to disperse them. They also charged batons to disperse the workers. Later, the vehicular movement came to normal around 11 am. Besides, the workers of Chain Apparel Garment factory blocked the road at Jirabo in the Bishmile area in the morning demanding payment of their dues, disrupting vehicular movement for three hours. Later, the workers withdrew the protest after getting assurance from the authorities concerned of getting their due wages.  

Finance Adviser Salehuddin Ahmed on Monday said the government has decided not to raise electricity prices for the time being to give people relief considering the prevailing high inflation. “It is very important to ensure adequate supply of energy and at the same time keep it as affordable as possible to improve the quality of life of citizens and keep the economy running. In principle, we have decided not to increase the price of electricity for the time being in the context of the prevailing high inflation,” he said while presenting the national budget for the fiscal year 2025–26. At present, Salehuddin said, the amount of subsidies given in the power sector is about 1 percent of GDP, which is very high. To reduce this gradually, he said, a plan has been taken to reduce the overall cost of power generation by 10 percent. Bangladesh unlikely to get electricity from Rooppur nuke plant before 2026 The adviser said if this plan can be implemented, it is estimated that the cost of electricity subsidy of more than Tk 11,000 crore will be saved. “We are reviewing the power purchase agreements and have taken the initiative to conduct energy audits to reduce the cost of power generation,” he said. Salehuddin said a plan has been made to supply 648 million cubic feet of gas from domestic sources within this year and to extract an additional 1500 million cubic feet gas from local wells by 2028. Bangladesh to receive 40MW electricity from Nepal for 5 months “Keeping these targets in mind, emphasis has been laid on increasing the capacity of the local gas exploration company BAPEX and necessary funds have been allocated for this,” he said.

Finance Adviser Salehuddin Ahmed on Monday proposed an allocation of Tk 95,644 crore for the education sector in the national budget of Bangladesh for the fiscal year 2025-2026, up from Tk 7,482 crore from the current fiscal. Finance Adviser announced the budget allocation while unveiling the national budget for the 2025–26 fiscal years. The pre-recorded budget speech was aired on Bangladesh Television (BTV) and Bangladesh Betar. The Finance Adviser said this year the government has placed special emphasis on building a science-driven, technology-based and employment-oriented education system in the proposed budget for the fiscal year 2025-26, recognising it as essential for establishing a strong economic foundation. Science, technology and technical education have been prioritised to create a conducive learning environment that meets the demands of a modern workforce, he said. Primary and Mass Education Given the significance of primary and mass education, Finance Adviser has proposed an allocation of Tk 35,403 crore for the sector in FY2025-26. Budget FY 24-25: Primary and Mass Education sector to get higher allocation As the foundation of a child’s cognitive development is shaped in primary education, the government has initiated a series of short-, medium- and long-term reforms, he said. These reforms are being undertaken based on recommendations from a consultation committee formed to enhance the quality of primary education and ensure a supportive learning environment. In the current fiscal year, the government has already constructed 5,946 classrooms, 17,164 wash blocks, and installed 4,450 tubewells in primary schools across the country. Besides, 21,278 classrooms, 18,476 wash blocks and 6,984 tubewells are currently under construction. As part of its commitment to accessible and quality education, a total of 91.95 crore textbooks have been distributed among students from pre-primary to class five in the current academic year. All primary-level students are now receiving stipends through Electronic Fund Transfer (EFT), ensuring transparency and timely disbursement. Meanwhile, the ‘Government Primary School Feeding Program’ will be expanded to 150 upazilas at a cost of Tk 5,452 crore. The initiative aims to boost student enrolment, improve nutrition, and enhance classroom attendance. An allocation of Tk 2,164 crore has been proposed for the program in the next fiscal year. Secondary and Higher Education The government has proposed a total allocation of Tk 47,563 crore for the development of Secondary and Higher Education, up from Tk 44,109 crore from the current fiscal year. In an effort to improve the quality of education, existing textbooks at the secondary and higher secondary levels have been revised and updated. To align higher education with international standards, curricula at all private universities have been modernized based on the globally accepted Outcome-Based Education (OBE) model. Currently, 62 projects are underway under the Secondary and Higher Education Division, with an allocation of Tk 1,957 crore dedicated to enhancing educational infrastructure and related initiatives. Higher education sector passing tough time: UGC Chairman The government has also provided stipends to 51 lakh underprivileged but meritorious students at the secondary level, 8 lakh at the higher secondary level, and 1.65 lakh at the undergraduate level during the current fiscal year. Additionally, Tk 1,626 crore has been proposed for the distribution of updated textbooks among secondary and higher secondary students. Technical and Madrasa Education Recognising the growing importance of technical and vocational education for job creation both at home and abroad, the government has proposed Tk 12,678 crore for the Technical and Madrasa Education in FY2025-26, up from Tk 11,783 crore in the current fiscal year.

OMS and food-friendly programmes are being continued in the new fiscal year to alleviate poverty and ensure food security for low-income people. Currently, OMS activities are being conducted through 1,901 centers nationwide. Under this initiative, 1.22 crore families are receiving rice at a subsidized rate of Tk 30 per kg monthly. Budget prioritises people over infrastructure: Finance Adviser Besides, wheat is being distributed among the listed tea garden workers at the rate of Tk 19 per kg. Furthermore, under the Vulnerable Women Benefit Programme, 10,40,000 destitute women are being provided with 30 kg of rice per month. Food subsidies will continue in the next fiscal year to ensure food security for the low-income people, said Finance Adviser Salehuddin Ahmed in presenting the national budget for 2025-26 fiscal year through live television broadcast.