Cost of flats to go up

Home and commercial space buyers are expected to face higher costs as the government seeks to hike value-added tax on the services provided by construction firms. The VAT rate will be 10 percent in FY26, up from 7.5 percent during this outgoing fiscal year. Besides, an increase in specific VAT on rods is expected to fuel construction costs.

Online shopping gets costlier

From the next fiscal year, shoppers who want to buy from online platforms may face higher prices. Because the National Board of Revenue seeks to increase VAT on the commissions from product sales through e-platforms to 15 percent from 5 percent this fiscal year.

OTT services face 10% SD

The interim government has imposed a 10 percent supplementary duty (SD) on over-the-top (OTT) platform services for the fiscal year 2025-26 — a move that is expected to increase costs at the users' end. The move comes as the popularity of OTT platforms is growing, driven by increased smartphone penetration, availability of internet, and rising demand for localised content.

Prices of plastic tableware to rise

Prices of most plastic items used in households are likely to go up next fiscal year. Because the government has doubled the rate of value-added tax on plastic tableware, kitchenware, household items, hygiene products and toiletries to 15 percent from 7.5 percent.

Source tax on essentials halved

In an effort to ease the burden on marginal farmers and suppliers, the interim government has proposed reducing the source tax on income from the supply of essential commodities -- including paddy, rice, wheat, potato, jute, and tea leaf -- to 0.5 percent from the next fiscal year. Previously, the source tax on these items was 1 percent.

Duty-free bank deposit threshold goes up

The duty-free threshold for bank deposits was hiked to Tk 3 lakh, offering relief to small savers. Currently, deposits more than Tk 1 lakh are subject to a Tk 150 duty on amounts up to Tk 5 lakh.

Tk 100cr startup fund launching

A Tk 100 crore startup fund was proposed in the national budget to support emerging entrepreneurs. The fund will focus on tapping into the potential of the information technology sector and encouraging fresh talent to venture into the field.

Source tax on broadband may be halved

The source tax on broadband services has been recommended to be reduced to 5 percent from the existing 10 percent in the proposed national budget.