PM seeks wider tax relief

Prime Minister Tarique Rahman on Monday described the proposed national budget for FY2026-27 as a “life-friendly budget”, saying it is designed to ease the cost of living, support economic recovery and serve as a roadmap for rebuilding the country after years of economic mismanagement.

Joining the general discussion on the budget in Parliament, the Prime Minister also proposed a series of tax concessions and urged Finance Minister Amir Khosru Mahmud Chowdhury to withdraw several controversial provisions in response to public concerns.
“I would like to name this budget a ‘Jibon Bandhob Budget’ (life-friendly budget).

Using our highest wisdom, conscience and knowledge, we have tried to present a budget through which people of all classes and professions can find at least some relief and comfort,” Tarique Rahman said.

Calling the budget one of the state’s most important policy instruments, he urged lawmakers to view it as a blueprint for rebuilding the nation through inclusive growth, equitable development and improved public welfare.

The Prime Minister acknowledged the country’s economic challenges, saying his government inherited a fragile economy marked by corruption, capital flight, declining investment, high inflation and pressure on foreign exchange reserves.

“Whatever budget we present, it is not possible to solve every problem overnight. The realities are difficult. Even then, considering all aspects, we have tried to formulate a budget that would provide at least some relief,” he said.

Highlighting measures to ease inflationary pressures, Tarique Rahman said taxes and duties on 61 essential commodities had been withdrawn.

He noted that, unlike previous years, the country did not witness abnormal price hikes following the budget announcement.

The Prime Minister also outlined the government’s ongoing efforts to recover assets allegedly laundered abroad.

Bangladesh has already sent 23 Mutual Legal Assistance Requests to 13 countries, while agreements have been finalised under international legal frameworks.

Several affected banks have also signed more than 60 non-disclosure agreements with international asset recovery organisations.

Seeking changes to the proposed budget, Tarique Rahman proposed raising the tax-free income threshold to Tk400,000 for FY27 and FY28, Tk450,000 for FY29 and FY30, and Tk500,000 for FY31, above the levels proposed in the budget.

He also called for the withdrawal of the proposed provision on investment disclosure, saying it had created public confusion.

“Unfortunately, some people have interpreted it as an opportunity to legalise undisclosed money,” he said, requesting the finance minister to withdraw the proposal.

The Prime Minister further urged the withdrawal of proposed requirements for mandatory Taxpayer Identification Number (TIN) certificates for opening most bank accounts and for registering partition deeds and property mutations.

To encourage investment and industrial growth, he proposed reducing income tax on private universities from 10 per cent to 5 per cent, lowering import duty on PVC and PET resin from 10 per cent to 5 per cent, and providing duty and VAT exemptions on key inputs for the shrimp industry.

He also proposed reducing customs duty on imported raw cashew nuts from 15 per cent to 5 per cent, exempting VAT on revenue-sharing arrangements with the Bangladesh Telecommunication Regulatory Commission (BTRC), and cutting VAT on locally manufactured double-cabin pickup trucks and microbuses from 15 per cent to 5 per cent.

The Prime Minister reiterated the government’s commitment to strengthening agriculture, saying around 13 lakh farmers had already benefited from the waiver of agricultural loans of up to Tk10,000, including interest.

He added that 43 lakh farmers would receive financial support and at least 10 additional services through a new Farmers’ Card programme in FY27.

Emphasising long-term development, Tarique Rahman pledged to implement the Teesta Barrage Master Plan and accelerate investments in river dredging, irrigation and water management.

He said the government plans to excavate and re-excavate 20,000 kilometres of canals over the next five years, with around 900 kilometres already completed during the past three months.

Finance Minister Amir Khosru Mahmud Chowdhury unveiled the proposed Tk9.38 lakh crore budget on 11 June, aiming to contain inflation, lower the cost of living, stimulate investment, strengthen social protection and maintain fiscal discipline.