United News of Bangladesh

Prime Minister Tarique Rahman on Monday proposed raising the income tax-free threshold for individual taxpayers over the next five fiscal years and urged the Finance Minister to withdraw several controversial provisions in the proposed national budget in response to public concerns. Taking part in the general discussion on the proposed budget for FY2026-27 in Parliament, Tarique said the tax-free income ceiling should be increased to provide greater relief to individual taxpayers. He proposed setting the tax-free threshold at Tk 400,000 for FY2026-27 and FY2027-28, Tk 450,000 for FY2028-29 and FY2029-30, and Tk 500,000 for FY2030-31. The budget had proposed thresholds of Tk 375,000, Tk 400,000 and Tk 450,000 respectively for those periods. The prime minister urged the finance and planning minister to incorporate the revised limits into the budget. Referring to the proposed provision relating to the disclosure of investments, Tarique said it has generated widespread public concern and misunderstanding. He explained that the proposal had originally been intended to spare taxpayers from complications arising because many land transactions are registered at mouza values rather than actual market prices. "Unfortunately, some people have interpreted it as an opportunity to legalise undisclosed money," he said. He requested the Finance Minister to withdraw the provision respecting public opinion. He also called for the withdrawal of two other proposed measures that have created confusion among the public – making the submission of Taxpayer Identification Number (TIN) certificates mandatory for opening most bank accounts and for the registration of partition deeds and property mutations. The Prime Minister proposed reducing the income tax rate for private universities from the existing 10 percent to 5 percent. At the same time, he urged private universities to invest more in research and development, establish language laboratories to equip students with multilingual skills, and expand tuition-free education opportunities for poor but meritorious students. He also sought an expansion of tax exemptions for indigenous communities in the three hill districts as well as plain land, proposing that salary income, along with income from business, agriculture and other economic activities, be exempt from tax. To boost shrimp farming and exports, Tarique proposed withdrawing customs duties, regulatory duties, supplementary duties and VAT on imported shrimp feed, probiotics, vitamins, minerals and other essential inputs, as well as on necessary machinery. He called for duty concessions on imported raw materials used by local industries and requested the complete withdrawal of the 10 percent supplementary duty on imported honey used by pharmaceutical and other manufacturing industries. The Prime Minister also proposed reducing the proposed 10 percent import duty on PVC and PET resin, widely used as industrial raw materials, to 5 percent. He urged the withdrawal of proposed regulatory duties on imported cold-rolled sheets used in fire door manufacturing, coated chromium oxide used in flat steel products, and refined copper wire used by electrical cable manufacturers. He further proposed abolishing the proposed 15 percent VAT and advance tax on imported fire bricks. Tarique requested that the customs duty on unprocessed cashew nuts, imported as raw materials for the cashew nut processing industry, be reduced from 15 percent to 5 percent. He also proposed extending duty concessions on imported raw materials for locally manufactured LED lamps and prefabricated buildings until June 30, 2030. Highlighting support for entrepreneurship, the Prime Minister said the government had allocated Tk 500 crore for a startup funding initiative in the proposed budget—the first such allocation in the country's history. He expressed confidence that the fund would help young entrepreneurs build successful startups and create significant employment opportunities for the country's youth. To encourage formal payment channels for digital advertising, Tarique proposed reducing the existing 15 percent VAT on advertisements placed on social media platforms, OTT platforms, search engines, online marketplaces and other digital media to 5 percent. He argued that the lower VAT rate would discourage businesses from making informal overseas payments and increase government revenue through greater compliance. The Prime Minister also requested a review of VAT rates on gold, platinum, diamond and silver jewellery, the complete exemption of the 15 percent VAT applicable to revenue-sharing arrangements with the Bangladesh Telecommunication Regulatory Commission (BTRC), and full VAT exemption at the supplier level for all fish supplies. To promote domestic automobile manufacturing, he proposed reducing VAT on the local production of double-cabin pickup trucks and microbuses from 15 percent to 5 percent. He also urged the government to relax coefficient filing requirements under the VAT system in selected sectors to simplify compliance for businesses.  

The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks. The decision was taken at a Cabinet meeting held Sunday at 6:45 pm in the Cabinet Room of the National Parliament, according to a statement from the Cabinet Division. The meeting was chaired by Prime Minister Tarique Rahman.  Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15 percent for electric buses with a minimum of 17 seats, for use in sectors other than student transportation. At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions. The facility will remain in effect till June 30, 2026 - i.e. the end of the current fiscal. It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environment-friendly transportation for students. The initiative was proposed by the Internal Resources Division, the statement said. A similar notification will also be issued for the import of trucks with a capacity of five tons or more, the statement added.

The Energy and Mineral Resources Division has urged the National Board of Revenue (NBR) to revise the existing VAT and tax structure on liquefied petroleum gas (LPG) imports and local production, aiming to stabilise supply and ease consumer pressure amid an ongoing market crunch. In its letter, sent in reference to recent decisions of the Advisory Council and a petition submitted by the LPG Operators Association of Bangladesh (LOAB), the Energy Division noted that around 98 per cent of the country’s LPG demand is met through imports by private sector operators, while the fuel is widely used for household cooking as well as in industrial activities. The letter pointed out that LPG prices typically rise during the winter season due to constrained global supply and increased domestic demand. Traders behind LPG price manipulation: Energy Adviser The situation has worsened as lower pipeline natural gas supply has pushed households and industries towards LPG, triggering a supply crunch that is disrupting daily life and drawing wide media attention. Referring to a memorandum issued by the Internal Resources Division on December 23, 2025, the Energy Division cited discussions held at the Advisory Council meeting on December 18, 2025. At that meeting, the council considered a proposal to withdraw the existing 15 per cent VAT exemption at the import stage and impose a 10 per cent VAT, while extending relief at other stages of the supply chain. The proposal also includes retaining the 7.5 per cent VAT at the local production stage, alongside exemptions from VAT at the business or trading stage and exemption from advance income tax. According to the Advisory Council, such a restructuring could help rationalise the overall tax burden on LPG and contribute to price stability. LPG crisis artificial, stern action to be taken: Ministry The council, however, stressed that any revision must be supported by a detailed analysis of its impact on consumers. The meeting minutes recorded that it is essential to assess the extent to which LPG purchase costs at the consumer level would fall if the proposed measures are implemented. To ensure this, the Advisory Council directed the Energy and Mineral Resources Division, the Ministry of Commerce and the Internal Resources Division to carry out a coordinated review and resubmit the proposal to the council with a clear assessment of consumer price implications. The Energy Division also informed the NBR that the issue had been discussed in a meeting with leaders of the LPG Operators Association of Bangladesh (LOAB). While the division expressed agreement with the Advisory Council’s broader approach, LOAB representatives reiterated their demand for zero per cent VAT at the import stage, opposing the proposed 10 per cent rate. Despite this difference, official records indicate that LOAB had broadly aligned with the Advisory Council’s deliberations, though disagreements remain over the specific VAT rate at the import level. The Energy Division said that policy support through a rationalised VAT and tax structure is crucial to maintaining normal LPG supply, particularly at a time when pipeline gas availability remains limited. LPG prices for Jan up but BERC admits lack of control over retailers It urged the NBR to take necessary steps in line with the Advisory Council’s guidance, taking into account the prevailing market situation and the need to protect consumers from further price shocks. LP Gas Traders Cooperative Society announced an indefinite countrywide strike from Thursday in the marketing and supply of the fuel, demanding higher distribution and retail charges.

India's government on Saturday offered relief to taxpayers and vowed to spend billions to double farmers' incomes and upgrade infrastructure, health care and industry to boost the country's lowest economic growth in a decade.