The interim government has proposed a 5 percent advance tax on the turnover of cigarette producers, which was 3 percent previously.
Says Ashikur Rahman, principal economist of the PRI
In his televised address to the nation, the adviser also proposed changes to duties on different products, which will result in increase and decrease in their prices
Previously, these requirements were mandatory for as many as 43 services.
The proposed national budget for fiscal year 2025-26 does not offer a conducive environment for investment and lacks the direction needed to drive industrial growth, said Anwar-Ul-Alam Chowdhury, president of the Bangladesh Chamber of Industries (BCI).
According to budget documents, the total deficit for FY 2025–26 is projected at Tk 221,000 crore.
Since January 2025, the government has also been distributing essential commodities such as lentils and soybean oil among 57 lakh families using “smart family cards” through the Trading Corporation of Bangladesh.
Of this amount, Tk 2,727 crore has been allocated as revenue budget, while Tk 229 crore was allocated as development budget
The funds will go towards allowances, medical care, grants, and rehabilitation.
However, the rates in the corresponding slabs will be higher.
The VAT rate will be 10 percent in FY26, up from 7.5 percent during this outgoing fiscal year.
Previously, the source tax on these items was 1 percent.
However, commercial importers will face 2.5 percent to 7.5 percent.
Meanwhile, the corporate tax rate for merchant banks has been proposed to be reduced to 27.5 per cent from the existing 37.5 per cent.
Imports of fertiliser, seed, and cotton will also get zero-duty benefit next year.
The move targets referral hospitals and all healthcare facilities with more than 50 beds.
From fiscal year 2025-26, the maximum tax rate will be 6 percent, while the minimum rate will be set at 1 percent.
The benefit will be available from the fiscal year 2025-26.
A proposal has been placed to add 79 new items to the duty-free list.
