United News of Bangladesh

Almost one lakh taxpayers have submitted their income tax returns online within the first 10 days of the launch of the e-return system for the current tax year (2025-26), the National Board of Revenue (NBR) said on Thursday. Following the inauguration of the e-return submission process by Finance Adviser Dr Salehuddin Ahmed on August 4, a total of 96,945 taxpayers filed their returns online till August 13. According to the NBR, only 20,523 taxpayers submitted e-returns during the first 10 days of last year’s filing season, which began on September 9, 2024. This year’s daily average submission rate is nearly five times higher than that of last year. On August 3, the NBR issued a special order making online filing mandatory for all individual taxpayers across the country, except for senior citizens aged 65 years or above, physically incapable persons or those with special needs, Bangladeshi taxpayers residing abroad and legal representatives of deceased taxpayers. Later, on August 11, the order was amended to exempt foreign nationals working in Bangladesh from the mandatory e-return requirement. Taxpayers facing registration-related issues may submit paper returns by October 31, subject to approval from the concerned Additional or Joint Commissioner of Taxes, upon application with valid justification. The NBR said taxpayers can pay their taxes from home via bank transfers, debit or credit cards and mobile financial services such as bKash, Rocket, or Nagad, and can instantly print their e-return acknowledgement slip and income tax certificate. ‘Zero tax returns’ illegal, may invite imprisonment: NBR To assist taxpayers, a dedicated call centre has been set up at 09643 71 71 71 for immediate solutions to e-return queries. Written complaints or queries can also be submitted through the eTax Service option on the NBR portal (www.etaxnbr.gov.bd). The NBR urged all eligible taxpayers to file their returns on time through its portal, ensuring accurate disclosure of income, expenditure, assets and liabilities.

President Donald Trump signed his new package of tax breaks and spending cuts into law on Friday during a Fourth of July picnic at the White House, marking a major legislative victory he hopes will define his second-term legacy. The multitrillion-dollar legislation, which extends Trump’s 2017 tax cuts and imposes significant reductions to social programs, was signed in front of Republican lawmakers, Cabinet members, and supporters on the White House driveway. House Speaker Mike Johnson presented Trump with the gavel used during the bill’s final passage, which Trump banged down after signing the measure. The president had set the national holiday as his deadline for Congress to deliver the bill, which passed with near-unanimous Republican support. Fighter jets and stealth bombers flew overhead as part of the Independence Day celebrations. “America's winning, winning, winning like never before,” Trump told the crowd, referring to last month's bombing campaign against Iran's nuclear program. “Promises made, promises kept, and we've kept them.” The South Lawn was decorated in red, white, and blue, with music from the US Marine Band and pop hits from Chaka Khan and Huey Lewis adding Trump’s signature style to the festivities. Trump spoke for 22 minutes before signing the bill, highlighting what he described as a string of recent victories, including the Iran campaign and favorable US Supreme Court rulings. Later, Trump and First Lady Melania appeared on the Truman Balcony to watch fireworks, waving to the crowd as chants of “USA, USA” echoed across the lawn. They danced to “Y.M.C.A.” before departing for New Jersey. The legislation fulfills several of Trump’s key campaign pledges, including eliminating taxes on tips and Social Security income. Trump called it his “highest-profile win yet” and said, “Our country is going to be a rocket ship, economically.” However, the bill has drawn sharp criticism from Democrats, labor leaders, and advocacy groups, who argue it benefits the wealthy at the expense of working families. AFL-CIO President Liz Shuler said in a statement, “Today, Donald Trump signed into law the worst job-killing bill in American history. It will rip health care from 17 million workers to pay for massive tax giveaways to the wealthy and big corporations, amounting to the country’s largest money grab from the working class to the ultra-rich.” Trump demands Fed's Chair Powell 'resign immediately' The legislation slashes Medicaid and food stamps by $1.2 trillion and significantly increases immigration enforcement. The Congressional Budget Office projects that nearly 12 million more people will lose health insurance under the new law and estimates it will add $3.3 trillion to the federal deficit over the next decade. The bill passed the House on Thursday with only two Republican defections and no Democratic support. In the Senate, it cleared by a single vote, with North Carolina Senator Thom Tillis announcing he would not seek re-election after opposing the bill. Vice President Vance cast the tie-breaking vote. The package reverses major policies from the Obama and Biden administrations, including the rollback of Medicaid expansion and the elimination of tax credits for renewable energy initiatives. Democratic National Committee Chair Ken Martin described the bill as “devastating,” saying it “sealed the fate of the Republican Party, cementing them as the party for billionaires and special interests — not working families.” He predicted the GOP would lose its congressional majority, calling the bill “a full betrayal of the American people.” Trump, however, defended the legislation, saying Democrats oppose it because of their “hatred” for him or the country. “Their standard line is to say Republican legislation is dangerous or everybody's going to die,” Trump said. “We can't let them get away with it. It's actually just the opposite, everybody's going to live.” Trump warned supporters to dismiss Democratic criticism, saying, “If you see anything negative put out by Democrats, it's all a con job.” The bill is expected to be a major issue in next year’s midterm elections, with Democrats planning rallies, voter drives, and other campaigns to highlight the cuts to social programs. Although Trump claimed the package is “very popular,” recent polling suggests mixed public opinion. A Washington Post/Ipsos poll found support for elements like eliminating taxes on tips and increasing the child tax credit, but majorities opposed cutting food assistance and spending $45 billion on migrant detention centers.  Additionally, around 60% of respondents called the projected $3 trillion increase to the national debt “unacceptable.”

Development Organisation of the Rural Poor- DORP, alongside journalists, social leaders, and policymakers, have called for an increase in tobacco product prices and taxes, as well as reforms to the tobacco tax policy, in the upcoming national budget for FY 2025–26.  Anti-tobacco coalition demands effective tax structure to reduce demand This demand was raised during a national seminar titled “Increasing the Price and Tax on Tobacco Products and Reforming the Tobacco Tax Policy in the National Budget for FY 2025–26”, held at the CIRDAP Auditorium. The speakers called for the increase to safeguarding public health and advance the goal of a tobacco-free Bangladesh. The seminar, presided over by DORP’s Founder and CEO AHM Noman, highlighted the urgent need to reform the existing tobacco tax structure. Special guests included Md. Akhtaruzzaman (Joint Secretary), Director General of the National Tobacco Control Cell; Hossain Ali Khondaker, former Additional Secretary at the Health Services Division; and Munshi Alauddin Al Azad (Retired Joint Secretary), Member of the BDR Investigation Commission.  The event also acknowledged the World Health Organization’s decision to honour the National Board of Revenue (NBR) with the 2025 World No Tobacco Day (WNTD) Award. On behalf of the NBR, Md. Tarek Hasan, First Secretary (Tax Policy), was in attendance and received congratulations from the seminar participants. A major focus of the seminar was the demand to merge the low and medium tiers of cigarettes and set the minimum retail price for a 10-stick cigarette pack at BDT 90. Speakers argued that the current pricing gap between the low and medium tiers is so narrow that consumers frequently shift from one to the other, undermining the impact of price hikes.  Mohammad Zobair Hasan, deputy executive director of DORP, presented the keynote paper detailing budget proposals.  NBR spilt into 2 divisions to overhaul tax system: Govt  These included setting the minimum retail price of a 10-stick cigarette pack at TK 90 for the merged low and medium tiers, retaining TK 140 for the high tier, and setting TK190 for the premium tier. He also proposed maintaining a 67% supplementary duty, 15% VAT, and a 1% health development surcharge on the retail price of cigarettes. Other tobacco products were also addressed. The proposed prices include TK 25 for 25-stick non-filtered bidis and BDT 20 for 20-stick filtered bidis, both subject to a 45% supplementary duty. For smokeless tobacco, the suggested retail price is  TK55 for 10 grams of jarda and BDT 30 for 10 grams of gul, with a 60% supplementary duty. A 15% VAT and 1% health surcharge are to remain applicable across all tobacco products. In his remarks, Md. Akhtaruzzaman highlighted the inefficiency of the existing four-tier pricing system for cigarettes. He explained that the minimal price difference between the low and medium tiers enables consumers to shift between them, diluting the intended impact of price-based control measures.  Adding to this, Munshi Alauddin Al Azad projected that the proposed reforms could reduce the national smoking rate from 15.1% to 13.03%. Approximately 2.4 million adult smokers might be encouraged to quit, and 1.7 million youths could be discouraged from initiating smoking. In the long term, this could prevent 864,758 adult deaths and 869,000 youth deaths due to tobacco-related illnesses. Furthermore, the proposed tax reforms could generate an additional TK 200 billion in revenue—a 43% increase over the previous year. Social leaders and university students were also present, lending support to the cause.

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Sunday announced that tax officials will be given specific targets to increase tax collection from individuals and entities that evade taxes, fail to file returns, or claim exemptions improperly. “Eligible non-taxpayers will be brought under surveillance,” he said while addressing a seminar titled ‘Fiscal Issues for National Budget 2025-26 to Foster Economic and Business Growth’ as the chief guest at a hotel in the capital. Khan pointed out that the amount of tax revenue lost through exemptions is nearly equivalent to what is collected annually. “From the very beginning, a large volume of exemptions has been granted, but given the government’s growing internal and external debt burden, this is no longer sustainable,” he said. The NBR chief announced that commissionerates will receive instructions and tax collection targets for both the current and next fiscal years. “This will help measure how much revenue is being collected from non-filers and those who benefit from exemptions.” According to Khan, about 92% of NBR’s revenue is generated automatically—mostly through Tax Deducted at Source (TDS)—while tax officials directly collect just 8%. “This new system will allow us to gauge the efficiency of our tax officials,” he added. The NBR chief also revealed that under the upcoming tax exemption policy, the authority to grant exemptions will rest with Parliament, ensuring greater transparency and accountability. On business facilitation, he said the next budget would include measures to simplify procedures related to income tax, customs, and VAT. “We’re prioritising the reduction of compliance costs without compromising revenue,” he emphasised, noting that these simplifications will be reflected in the new Finance Ordinance for FY26. The Institute of Chartered Accountants of Bangladesh (ICAB), the Foreign Investors’ Chamber of Commerce & Industry (FICCI) and the Japan-Bangladesh Chamber of Commerce & Industry (JBCCI) jointly organised the seminar. ICAB council member and former President Mohammed Humayun Kabir chaired the session, which featured keynote presentations from Dr M Masrur Reaz, Chairman of Policy Exchange Bangladesh and Snehasish Barua, Partner at Snehasish Mahmud & Co., Chartered Accountants. A panel discussion followed, with insights from industry leaders including Mohammad Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh; Manabu Sugawara, Country Head of Marubeni Corporation; Yuji Ando, Joint Secretary General of JBCCI; Dr. Abdul Mannan Shikder, former NBR Member; and Md. Afzal Hossain, former Government Secretary. UGC may appoint administrators to private universities if graft allegations proven Khan said the government will rationalise the tax structure, although it may not fully meet the expectations of the business community. “However, this reflects our responsiveness to your concerns.” He noted that most stakeholders in pre-budget discussions had called for a reduction in tax rates—demands he described as reasonable, yet difficult to accommodate given the need to balance revenue growth with trade facilitation. Even though Bangladesh having one of the lowest nominal corporate tax rates in the region at 22.5%, the actual tax burden remains high due to arbitrary assessments. To address this, the NBR plans to implement monitoring tools to evaluate assessment quality and reward tax officials for adherence to rules. The NBR has also begun issuing notices to non-filers, with each tax office being assigned recovery targets. A long-term tax policy framework is also under consideration to minimize abrupt changes in policy. As part of its digital initiatives, the NBR has launched a new online export-import tax portal. Besides, manual audit selection has been paused, and the board will begin conducting random electronic audits on 0.5% of returns—a figure expected to grow as digital systems evolve. ICAB President Maria Howlader called for predictable tax policies, structural reforms, and accelerated digitalization to create a more business-friendly environment. She stressed the importance of coordinating fiscal and monetary policy to address persistent inflation, which currently hovers between 9% and 10%. “Unchecked fiscal deficits and excessive borrowing can worsen inflationary pressures and threaten overall economic stability,” she warned, urging policymakers to emphasise trade facilitation, automation, and institutional coordination. FICCI President Zaved Akhtar underscored the need for an integrated tax system, separating policy formulation from revenue administration to promote fairness and predictability. He advocated for a unified VAT rate, proper raw material classification, and gradual removal of non-tariff barriers to enhance competitiveness ahead of Bangladesh’s LDC graduation. JBCCI President Tareq Rafi Bhuiyan welcomed the upcoming budget’s focus on improving the ease of doing business, citing its potential to attract investment and strengthen Bangladesh-Japan economic ties. Dr M Masrur Reaz noted the economic challenges facing Bangladesh, including near double-digit inflation and a six-year low in foreign direct investment. He called for bold fiscal and monetary action to navigate these uncertainties. Echoing these concerns, Snehasish Barua emphasized the need for strong fiscal policies in the upcoming budget. The seminar was attended by key stakeholders like ICAB CEO Shubhashish Bose, FICCI Board members, FICCI Executive Director TIM Nurul Kabir, JBCCI Executive Director Tahera Ahsan, and representatives from various embassies, FICCI and JBCCI member companies and other organisations.

A group of 12 U.S. states has filed a lawsuit challenging President Donald Trump's aggressive tariff policy, arguing that the administration overstepped its legal authority and bypassed Congress. Led by Arizona Attorney General Kris Mayes, the lawsuit criticizes the tariffs as both harmful to the economy and unconstitutional. "President Trump's insane tariff scheme is not only economically reckless — it is illegal," Mayes said in a statement. The states involved include Democratic-led Arizona, Minnesota, New York, Oregon, and others. California, though not part of this coalition, launched its own legal challenge just a week earlier. Since returning to office, Trump has disrupted global trade markets by announcing sweeping new tariffs as part of his so-called "Liberation Day" policy shift. The U.S. has slapped an additional 145% import tax on Chinese goods, prompting China to retaliate with a 125% tariff on American exports. Trump insists he's negotiating a "fair deal" with Beijing, but tensions remain high. Trump's Social Media ‘Buy’ tip pays off as markets rally following tariff delay In addition to the China-focused tariffs, the White House has implemented a 10% levy on imports from other trading partners, with threats of even more aggressive measures looming. At the heart of the legal challenge is the 1977 law Trump invoked to justify the tariffs, which the states argue does not grant the president the authority to impose sweeping trade restrictions unilaterally. The suit asserts that Trump's actions sidestep Congress and destabilize the economy. "The President cannot declare an emergency on a whim and levy massive tariffs at will," the lawsuit contends. "This undermines the constitutional balance of power and injects uncertainty into the global market." Global shares jump following historic gains on Wall St after Trump paused most of his tariffs Trump maintains that his protectionist approach is aimed at revitalizing U.S. manufacturing, but critics argue the costs fall on American consumers and businesses. "Tariffs are taxes, plain and simple — and Arizona families will be the ones footing the bill," Mayes said. Meanwhile, political fallout continues. According to The New York Times, Trump’s approval rating has dropped to 44%, just three months into his second term. Democratic leaders have pounced on the numbers, blaming the administration’s economic policies for rising costs and market instability. California Governor Gavin Newsom last week blasted the tariff strategy, calling it “the worst own-goal in the history of this country.”    

Bangladesh National Savings Scheme 2025 offers the highest profit rate for 5-year Sanchayapatra compared to all its previous versions. Both the rate of return at maturity and on encashment have seen notable increases. Additionally, the investment limit has been significantly raised. On January 21, the National Savings Department published a notice confirming the continuation of tax at source on its official website. Consequently, savings certificate holders now better understand their entitled amount at maturity or upon early encashment. Let’s explore the new profit structure of the 5-Year Bangladesh Savings Certificate (Sanchayapatra) in detail. 5-year Bangladesh Savings Certificates’ Updated Return on Investment The profit payable upon encashment and maturity at different investment limits under this 5-year scheme is detailed in the table below: Table: Profit Rates for Various Investment Limits in the 5-Year Bangladesh Savings Scheme Investment Period (Year) Investments Up to BDT 7,50,000 Investments BDT 7,50,001 and Above TDS on Investment up to BDT 5,00,000 (%) Profit Rate (%) TDS on Investment from BDT 5,00,001 to 7,50,000 (%) Profit Rate (%) TDS (%) Profit Rate (%) 1st 5 10.13 10 10.13 10 10.11 2nd 10.64 10.64 10.62 3rd 11.19 11.19 11.17 4th 11.78 11.78 11.75 5th 12.40 12.40  12.37 For investors who buy Bangladesh Sanchayapatra up to BDT 7.5 lakh (7,50,000 or below) ceiling, the maximum profit will be given at an annual rate of 12.4 percent (12.4%). For investments exceeding BDT 7.5 lakh (7,50,001 and above), the maximum profit rate decreases slightly to 12.37 percent. Read more: 3-Monthly Profit-Bearing Sanchayapatra in Bangladesh: Revised Profit Rates in 2025 The source tax on profits varies based on the investment threshold. For investments up to BDT 5 lakh (5,00,000 or below), a 5% tax applies. However, for amounts surpassing BDT 5 lakh (5,00,001 or above), the applicable tax rate is 10%. If cashed out before the expiry date, the principal amount will be returned along with profit calculated at the relevant rate for each elapsed period as mentioned in the table. In the case of early encashments, for investors with up to BDT 5 lakh (5,00,000 or below), the annual interest rate will be 10.13 percent at the end of the first year. At the end of the second year, this return will be 10.64 percent. By the third year, the interest rate will be 11.19 percent; after the fourth year, it will reach 11.78 percent. For investments above BDT 5 lakh and up to 7.5 lakhs (BDT 5,00,001 - 7,50,000), the encashment results in a profit of 10.13 percent in the first year. At the end of the second, third, and fourth years, the profit rate will be charged at 10.64 percent, 11.19 percent, and 11.78 percent respectively. In all cases, a 10 percent source tax will be imposed on the profit. Read more: Paribar Sanchayapatra 2025: Revised profit rates of Family Savings Certificate in Bangladesh For investments exceeding BDT 7.5 lakh (7,50,001 and above), the 10 percent source tax on profit remains unchanged. In cases of early encashment, the annual profit will be calculated at a rate of 10.11 percent for the first year. This rate increases to 10.62 percent in the second year. For the third and fourth years, the profit rate rises further to 11.17 percent and 11.75 percent, respectively. Eligibility Criteria for the New Profit Rate The revised profit rate applies exclusively to investments in 5-year Bangladesh Savings Certificates made on or after January 1, 2025. Who Can Apply for This Savings Scheme - All Bangladeshi citizens irrespective of profession- Provident funds will be acknowledged or administered by the following rules:    o Sub-rule (2) under the rule of 49 of the Income-tax Acts 1984 (Part-II)    o Provident Funds Act, 1925 (19th Act of 1925)- Income from the following sources (certified by the concerned Deputy Commissioner of Taxes) according to the 34th section of Part A of Schedule 6 of the Income-tax Ordinance-1984:    o Seed production and Marketing of locally produced seeds    o Fruit and leafy vegetable cultivation    o Production of pelleted poultry feeds    o Poultry farms    o Cattle farms and Dairy and dairy farms    o Fishery farms    o Frog production farms    o Silkworm rearing farms    o Mushroom production    o Horticulture farm projects- Educational institutions for individuals with autism, or any other organization providing services to autistic individuals (must be certified by the relevant district social services office). A key requirement for profit distribution is that all income generated from the institution's investments must be exclusively used for the benefit of autistic individuals.- Orphanages, foster homes, or registered shelters established for the care of orphaned and destitute children.  - Dedicated and registered shelters for the elderly. Read more: Sanchayapatra interest rate revised: New profit rates of Bangladesh National Savings Certificate in 2025 Highest Ceiling - For Individuals: A limit of BDT 30 lakh for a single account and BDT 60 lakh for a joint account. - For Institutions: 50% of the total provident fund balance, with not more than BDT 50 crore. - For Firms: A maximum cap of BDT 2 crore. - For Institutions supporting Autism, Registered Shelters for Orphans, Destitute Children.  - Elderly: A maximum limit of BDT 5 crore. Additional Benefits - Investors have the option to appoint a nominee. - Upon the investor's death, the nominated individual can either encash the scheme or wait until maturity. Read more: Sanchayapatra at Maturity: Encashment or Renewal of Bangladesh’s National Savings Certificate Summing Up Investments of up to BDT 7,50,000 in 5-Year Bangladesh Sanchayapatra will yield a maximum profit rate of 12.4 percent at maturity. For investments going beyond BDT 7,50,000, the net profit rate is capped at 12.37 percent. In 5-year Bangladesh Savings Certificates, two distinct categories exist for investments within the BDT 7.5 lakh limit, based on the source tax applied to the profit. A 5% tax is levied on investments up to BDT 5 lakh, while a 10% tax is applied to amounts exceeding BDT 5 lakh. Moreover, early redemption provides higher returns this year compared to previous periods. Read more: How to Buy Sanchayapatra in Bangladesh: A Beginner's Guide

A high-level advisory panel has suggested formation of a commission for the National Board of Revenue to tighten tax administration and boost revenue collection based on sound policies. The proposed Revenue Commission will work to formulate revenue policies in light of the government's overall development policy strategy, proposals and suggestions from stakeholders, and specific policies formulated based on international best practices, as per the interim proposal that was submitted recently. NBR Chairman urges businesses to stop seeking tax exemptions It will have a permanent advisory council comprising appropriate representatives of the Ministry of Industry, Ministry of Commerce, Finance Department, Bangladesh Bank, Tariff Commission, eminent economists, persons with experience in tax and fiscal matters, representatives of business organisations, and representatives of think tanks and civil society. The proposals have been made in a preliminary report by a five-member advisory committee the interim government formed in October last year to initiate positive reforms in the NBR. The advisory committee comprises NBR's ex-chairmen Muhammad Abdul Mazid and Dr Nasiruddin Ahmed and three former members -M Delowar Hossain, Farid Uddin and Aminur Rahman. The advisory committee has been tasked to make suggestions on fiscal policy reforms, revenue administration reforms, assess the institutional capacity of the National Board of Revenue and provide recommendations for modernisation, advise on formulation of institutional frameworks and policies for integrity and good governance, advise on citizen communication and stakeholder engagement activities and any other policy advice related to revenue reforms.  The interim report said that skilled and dedicated officers with sufficient knowledge and experience in tax revenue policy and tax revenue management from among the officers in the Income Tax, Customs and VAT cadres will be appointed by the government as Secretary/Senior Secretary of the Revenue Commission on the basis of specific policies. Committee on NBR reform submits report advising wholesale changes in tax collection system Skilled and dedicated officers with knowledge and experience in formulating and implementing the revenue policy of the National Board of Revenue i.e. the Revenue Service will be appointed to this office for a fixed term on the basis of specific policies as per the needs of the organisational structure of the Revenue Commission. This council will provide regular advice to the Revenue Commission on the determination of customs and tax policies on a minimum quarterly basis in the light of the policies formulated in consultation with stakeholders and international best practices. NBR explains heavy tax cut in import of air purifiers The Customs and VAT Appellate Tribunal and the Income Tax Appellate Tribunal will be vested in the reconstituted Revenue Commission. It would be reasonable for the location of the reconstituted Revenue Commission to be outside the Secretariat and outside the Revenue Building to facilitate the travel and communication of stakeholders (including the Appellate Court) in accessing tax policy services.

The National Board of Revenue (NBR) has issued several notifications by re-fixing the rates of VAT, Supplementary Duty and Excise Duty on some goods and services, which were increased on January 9, aiming to strengthen the country's economic base. The government had issued the "Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025" and "The Excises and Salt Act (Amendment) Ordinance, 2025" on January 9, 2025. Later, considering the requests of various professional organizations, civil society and stakeholders, in the larger public interest, the National Board of Revenue has issued 4 new notifications on Wednesday reducing the existing VAT rate, VAT deduction rate at source and Supplementary Duty rate on some goods and services. Medicines: In order to make medical services more accessible to all sections of the population, the increased VAT rate on the pharmaceutical industry at the business level has been completely withdrawn and the previous rate of 2.4% has been maintained. Read more: VAT on hotels, restaurants to be revised to previous level: NBR With the withdrawal of the additional VAT imposed on medicines, the continuous development of the pharmaceutical industry will continue and the price of medicines will not increase at the general consumer level. Mobile Phone and ISP Services: In order to continue the ongoing digitization activities of the country and to create a modern IT-savvy young generation and increase online-based activities, the increased supplementary duty on services provided through the use of mobile phone SIM/RIM cards and the newly imposed supplementary duty on ISP services have been completely withdrawn. With the complete withdrawal of the increased/newly imposed supplementary duty on mobile phone and ISP services, the cost of consumers in these two sectors will not increase. Restaurants: In order to facilitate the large population of the country to consume food in restaurants at affordable prices, the additional VAT imposed on all restaurants except three-star, four-star and five-star hotels has been completely withdrawn. Read more: VAT reduction on medicines recommended: Health Adviser As a result of the complete withdrawal of the additional VAT, the general public will be able to consume food in these restaurants at the previous price. Motor vehicle garages and workshops: In the public interest, the increased VAT rate has been completely withdrawn in the case of motor vehicle garage and workshop services. As a result of the complete withdrawal of the additional VAT, the price of the related service will not increase. Others: In the same consideration, the additional VAT imposed on the marketing of other clothes except for own-brand ready-made clothes has been completely withdrawn. In addition, the VAT rate on services has been reduced from 15 percent to 10 percent in the case of non-AC hotels, dessert shops, and marketing of own-brand ready-made clothes. Read more: Commerce Adviser defends govt’s move to increase VAT A press release from NBR said that that in the larger interest of the people of the country, in the last few months, the National Board of Revenue has provided massive tax exemptions on import duty, regulatory duty, VAT, advance income tax and advance tax on edible oil, sugar, potatoes, eggs, onions, rice, dates and pesticides. In order to ensure easy availability of books for students at all levels of Bangladesh, to establish a modern and information technology-based education system and to improve the quality of the education system, VAT exemption has been provided for e-book services at the local supply and import level. VAT exemption has been provided on the fast, safe and environment-friendly metro rail service for its important role in reducing traffic congestion. In addition, the National Board of Revenue has completely withdrawn the excise duty on Hajj tickets in order to reduce the expenses of Hajj passengers.

The tax imposed on marriage registration has been cancelled, Law Adviser Dr Asif Nazrul has said. "Tax was imposed on marriage registration. The ministry has cancelled this illogical tax," he said at a press conference on current affairs at the Secretariat on Tuesday. Document authentication process goes online Responding to a question from when the decision would take effect, the adviser said, "I have signed document in this regard  today. You can get married without tax." “The marriage registration form used to mention ‘married’ or ‘virgin’. This is a disrespectful word for a girl. We have replaced that word with unmarried,” he added. The adviser said they have done many such small things. “I have plans to do many more things."

The corporate income tax rate for manufacturers of refrigerators, air conditioners (AC), motorcycles and compressors has been doubled. Starting from the 2025-2026 fiscal year, the National Board of Revenue (NBR) will be able to impose an income tax of up to 20% on the producers of these products, said a notification issued in this regard on Tuesday. The NBR said that the revised tax rate will remain in effect until 2032 for these electronic appliances and motorcycle manufacturers. According to the notification, the new tax rate will be applicable from the 2025-2026 fiscal year and producers in these sectors will have to pay the increased tax on the income earned in the current fiscal year. The government is focusing on reducing reliance on both domestic and foreign debt, while also boosting revenue collection and capacity. As part of this effort, the decision to raise taxes on manufacturers of electronic goods and motorcycles has been made. After disgraceful 2024 ‘goat scandal’ NBR steps up efforts to curb graft In January 2023, the International Monetary Fund (IMF) approved a $4.7 billion loan for Bangladesh, subject to certain conditions. One of the key requirements was the implementation of significant reforms in the country’s tax system. The IMF had recommended a major overhaul to enhance revenue collection. As part of the ongoing fiscal year 2024-2025, the IMF had urged Bangladesh to raise an additional Tk 12,000 crore in revenue. It also advised the government to implement a coordinated strategy to reduce subsidies and settle arrears in the electricity and fertiliser sectors. Bangladesh currently has the lowest tax-to-GDP ratio globally, which, combined with extensive tax exemptions, has left the government grappling with financial deficits. For the 2024-2025 fiscal year, the government has provided Tk 163,000 crore in tax exemptions. The NBR began offering tax incentives to manufacturers of refrigerators, air conditioners, and motorcycles in July 2009. NBR to launch door-to-door campaign to boost VAT collection Initially, a 5% corporate income tax rate was applied for a 12-year period. Over time, these tax incentives were expanded. But, in the fiscal year 2020-2021, the tax on these products was increased to 10%. As part of the "Made in Bangladesh" initiative, the government has been providing such incentives to promote locally produced goods.