United News of Bangladesh

Finance Adviser Dr Salehuddin Ahmed on Tuesday said it is not feasible to suddenly shift from the traditional macroeconomic framework and formulate a revolutionary budget overnight. “Many people thought we would propose a dramatic revolutionary budget, we would bring heavy revenue…this is not possible, but it is also not true that we are just following the footprints of the previous government,” he said. The Adviser made the statement while speaking at a post-budget press conference held at Osmani Memorial Auditorium in the capital. He said the interim government aims to make the budget realistic, implementable and pragmatic, despite facing challenges such as inflation, energy concerns, issues in the banking sector and revenue shortfalls. Talking about the move to get rid of the narrative of growth during the previous Awami League regime, he questioned who the beneficiaries of this growth were. “It was not transferred to everyone properly, it is fine to have growth, but we want to improve the livelihood of the common people, make it easy, increase their purchasing power, ensure peace and discipline in the country, and improve the atmosphere for the business. We have decorated the budget like that,” he said. Salehuddin mentioned that it was possible for the government to overcome all challenges. “The path is Bumpy and tough in the future,” he added. Change in budgtory proposal in whitening black money may be considered: Finance Adviser  About addressing all public demands, the Adviser said the government respects those but it would not be possible to meet all of them. “Overall the budget is a pro-people and pro-business one,” he claimed. The Finance Adviser also called upon the people of the country and the media personnel to come up with a collaborative approach and make positive criticism to implement the budget and thus take the country ahead. “Historically, the performance of Bangladesh is good. Our pace was a bit sloth before we assumed responsibility, but we’re trying to move forward…our goal is to make the livelihood of the common people, putting due attention to safety nets. Every country of the world alongside the development partners poses a very positive impression about Bangladesh,” he added. Citing the immense potentials of the country, he urged all to seize such potentials keeping pace with time. Mentioning that reforms are going on in different sectors, he said this government would carry out reform initiatives as much as it can and thus leave a footprint before the successive government to pursue those. Planning Adviser Dr Wahiduddin Mahmud, Home and Agriculture Adviser Lt Gen. Jahangir Alam Chowdhury, Power, Energy, Mineral Resources, Road Transport and Bridges and Railways Adviser Muhammad Fouzul Kabir Khan, Commerce Adviser Sk Bashir Uddin, Cabinet Secretary Sheikh Abdur Rashid, Bangladesh Bank Governor Dr Ahsan H Mansur, Finance Secretary Md Khairuzzaman Mozumder and NBR Chairman Md Abdur Rahman Khan, among others, spoke at the press conference. Earlier, on Monday, Dr Salehuddin Ahmed unveiled a Tk 7,90,000 crore national budget for the FY26 through a pre-recorded televised speech since the Jatiya Sangsad is not in place.

Finance Adviser Salehuddin Ahmed will present the national budget for the fiscal year 2025-2026 at 3:00 pm on Monday, an hour earlier than the previous 4 pm schedule.  The change in schedule was confirmed in an official statement issued by the Ministry of Finance. National budget on Monday, Interim govt shies away from major changes: Sources According to the notice, the national budget speech will be broadcast live on Bangladesh Television (BTV). All private television channels and radio stations have been requested to relay the broadcast simultaneously using the BTV feed.  

The interim government led by Professor Muhammad Yunus will present the national budget for the fiscal year 2025-26 on Monday. However, sources indicate that any significant changes are unlikely, with core tax policies remaining largely the same despite concerns about high inflation and declining real incomes. The tax-free income threshold for individual taxpayers  likely to remain at Tk 350,000 per year. There will be no increase in this limit, despite calls from economists and policy experts who argue that rising inflation necessitates a higher threshold to relieve financial pressure on low- and middle-income earners. Business taxes are likely to see upward adjustments. Non-listed companies in the stock market may face a 2.5% increase in the corporate tax rate, taking it to 27.5%. Companies with an annual turnover above Tk 30 million currently pay a minimum tax of 0.6% of total sales, regardless of profit or loss. This rate may be raised to 1%, as per the sources confirmed. Prof Yunus to hold next round of talks with political parties Monday Merchant banks might benefit from a reduced corporate tax rate—down from 37.5% to 27.5%. For listed companies, the existing 20% tax rate will remain unchanged. Some targeted tax concessions may be introduced. These include: Minimum tax relief: To encourage new taxpayers, the minimum tax—currently between Tk 3,000 and Tk 5,000 depending on location—may be reduced to as low as Tk 1,000. Land transactions: Taxes on land purchases may be lowered, with rates potentially reduced to 6%, 4%, and 3%, down from 8%, 6%, and 4% respectively based on location. Income tax return requirements: The number of services requiring proof of return submission may be reduced from 45, with some sectors like savings certificates no longer requiring returns, though credit card applications will still need them. Family donations: Tax exemptions for monetary gifts may now extend to include siblings, along with spouses, parents, and children. Private sector employees may receive higher tax-exempt allowances. Currently, up to Tk 450,000 can be exempted due to various benefits; this may be increased to Tk 500,000. Employers might be allowed to declare up to Tk 20 lakh in perks and financial benefits (perquisites) to employees without facing additional compliance burdens, doubling the current ceiling of Tk 10 lakh. Incomes from the National Pension Authority and its universal pension schemes are expected to be tax-exempt. The government may maintain the current policy allowing black money to be legalized through real estate investments, albeit at higher tax rates based on location. Buyers could be required to declare the source of funds. There may also be an announcement regarding taxing and penalizing laundered money and assets, particularly those involving individuals who renounced their Bangladeshi citizenship but continue to earn income from the country. Excise duty thresholds are expected to be revised. The current exemption for bank accounts holding less than Tk 100,000 may be increased to Tk 300,000. New layers for duty imposition are under consideration. Consumers may see higher prices on items like refrigerators, air conditioners, and mobile phones due to increases in VAT. Conversely, prices may drop for buses, microbuses, sugar, imported butter, soft drinks, specialty paper, and cricket bats due to adjustments in import duties. However, products such as steel rods, face washes, lipsticks, and chocolates may become more expensive as a result of duty hikes.