Advisory Council approves Tk 7.90 lakh crore budget for FY2025–26
NN Online:
The interim government’s Advisory Council has given final approval to the national budget of Tk 7.90 lakh crore for the fiscal year 2025–26 (FY26), originally presented on June 2 in a pre-recorded speech. The budget will take effect from July 1.
The approval was granted during a council meeting chaired by Chief Adviser Professor Dr Muhammad Yunus. This marks the 54th national budget and the first under the Dr Yunus-led interim administration.
In the final version, the government increased the allocation for the social safety net programme by Tk 10,000 crore, raising it to Tk 91,297 crore from the earlier proposed Tk 81,297 crore. However, the total size of the budget remains unchanged.
At a press briefing held at the Finance Ministry conference room, Finance Adviser Dr Salehuddin Ahmed said the Advisory Council approved the budget with several adjustments, including the removal of the provision that allowed legalization of undisclosed money through investment in flats and buildings.
He noted that the FY26 budget targets a GDP growth rate of 5.5 percent and aims to keep inflation within 6.5 percent. Of the total budget, Tk 5,60,000 crore has been allocated for non-development expenditure, while Tk 2,30,000 crore has been earmarked for the Annual Development Programme (ADP).
The budget deficit has been set at Tk 2,26,000 crore, a reduction from Tk 2,56,000 crore in the current fiscal year, representing 3.62 percent of the GDP.
Finance Division Secretary Dr Md Khairuzzaman stated that the special benefits announced for government employees have been increased—minimum Tk 1,500 for current employees and Tk 750 for pensioners.
National Board of Revenue (NBR) Chairman Abdur Rahman Khan elaborated on key tax measures:
The provision allowing investment in real estate by paying special tax has been abolished.
Publicly traded companies with at least 10 percent of paid-up capital floated via IPO or Direct Listing will face a 22.5 percent tax rate. If all income is transacted via bank transfer, the rate will be 20 percent.
All other publicly traded companies will be taxed at 27.5 percent, which drops to 25 percent if income is entirely bank-transferred.
He also announced the reduction of the tax rate for private universities and specialized private colleges (medical, dental, engineering, IT) from 15 percent to 10 percent.
Additional tax and duty adjustments include:
Tax deduction at source on property transfers reduced to 5%, 3%, and 2% from 8%, 6%, and 4%.
Advance tax on refined petroleum product imports lowered from 7.5% to 2%.
VAT exemption granted for:
Cotton produced from recycled jute.
Rent of beauty parlors run by women entrepreneurs.
Import of ballpoint pens.
Advance tax exemption offered for importing heart rings and eye lenses.
Customs and import-related reforms include:
Shift to invoice-based customs valuation for all petroleum imports.
Import duty on crude petroleum reduced from 5% to 3%; for others, reduced from 10% to 6%.
Duty on solar inverters slashed from 10% to 1% to promote renewable energy equipment.
Ten additional medical items have been included under the concessional import facilities for hospitals.
Import duty on Technically Specified Natural Rubber (used in tire manufacturing) reduced from 10% to 5% to support local production.
Officials said the updated budget reflects the government’s commitment to social equity, transparency, and sustainable development amid the current political transition.