The government is considering removing the 7.5 per cent advance tax (AT) on kidney dialysis equipment in the 2026-27 national budget, aiming to reduce treatment costs for millions of kidney patients in Bangladesh.
Officials at the National Board of Revenue (NBR) believe that lowering the tax burden could help reduce the cost of dialysis services, making them more accessible to a growing number of kidney patients across the country.
An estimated 40 million people in Bangladesh suffer from some form of kidney disease. While not all of them require dialysis, thousands of patients develop kidney failure each year and become dependent on regular dialysis to survive. The high cost of treatment is pushing many families into financial hardship.
According to customs data, Bangladesh spent approximately Tk251.86 crore on medical equipment for cardiac and kidney treatment between December 2025 and April 2026. Of this, imports of heart stents, angiographic catheter wires, guide catheters, and balloons under HS Code 90189030 accounted for Tk228.80 crore. In comparison, kidney dialysis machines and baby incubators under HS Code 90189020 accounted for over Tk23.05 crore.
Analysis shows that heart stents and related products are taxed at only 2 per cent, enjoying exemptions from customs duties, supplementary duties, and VAT, with only a 2 per cent advance income tax (AIT) applied. In contrast, kidney dialysis machines currently face a total tax burden of 22.5 per cent, including 15 per cent VAT and 7.5 per cent advance tax.
President of the Bangladesh Renal Association Prof Dr Nazrul Islam said that dialysis has become a life-saving necessity, not a luxury. He said high taxes on dialysis equipment continue to escalate treatment costs. “We have been demanding tax cuts on dialysis-related equipment from successive governments for the past decade. If the current government provides tax exemptions, patients will directly benefit,” he stated.
Nazrul Islam added that despite the increasing number of kidney patients, dialysis services are becoming unaffordable for many, forcing patients to discontinue treatment midway. He further explained that a dialysis machine costs at least Tk12 lakh, while additional consumables, such as blood purification filters and blood tubing sets, are also required. “These items should also receive tax exemptions,” he added.
Currently, a single dialysis session at a private hospital or dialysis centre costs between Tk2,500 and Tk5,000, excluding government facilities. With patients requiring at least eight sessions per month, the treatment becomes financially overwhelming for many households.
Health economist Dr Ahsan Habib argued that tax policies on life-saving medical equipment should be more humane. “It is unreasonable that heart stents are taxed at only 2 per cent, while dialysis equipment is taxed at 22.5 per cent,” he said.
Ahsan Habib added that reducing taxes would lower import costs and operational expenses for private hospitals and dialysis centres, ultimately benefiting patients. However, he stressed that government monitoring is necessary to ensure that these savings are passed on to patients.
He also noted that treatment costs for kidney patients could be significantly reduced if the government cuts VAT in addition to removing the advance tax.
Studies indicate that the number of kidney patients in Bangladesh has nearly doubled over the past decade, with 30,000 to 40,000 new cases of kidney failure annually. However, due to the limited capacity of the country’s healthcare system, only 15-20 per cent of newly diagnosed kidney failure patients can receive dialysis, transplants, or other essential treatments. As a result, nearly 80 per cent of these patients die prematurely due to a lack of care or treatment.
If the proposed tax cuts are implemented, they could provide much-needed relief to kidney patients and improve access to life-saving dialysis treatment for a larger portion of the population.
