Finance Minister Amir Khosru Mahmud Chowdhury began presenting the proposed national budget for the 2026–27 fiscal year in the Jatiya Sangsad at approximately 3pm Thursday.
This marks the first budget of the BNP government during its current tenure, introducing various proposals for duty and tax exemptions alongside increases in tariffs for specific sectors.
While the adjustments offer the potential for reduced prices on several goods, other items are expected to become more expensive as tax changes take effect immediately upon their announcement in the budget speech.
Overall, the number of products benefiting from duty reductions outweighs those facing increases.
Tobacco and fossil-fuel vehicles to become more costly
The finance minister has proposed a revision of the minimum retail prices for cigarettes, setting them at Tk 62 for 10 sticks at the low tier, Tk 92 for the medium tier, Tk 160 for the high tier, and Tk 210 for the premium tier, which will lead to a price hike.
To protect public health, a 350 per cent supplementary duty has been proposed for nicotine granules and pouches.
To discourage the use of environmentally harmful fossil fuels, the tax burden on imported internal combustion engine vehicles (1,200cc to 1,600cc) is set to rise from 132.36 per cent to approximately 156 per cent.
Higher tariffs on imported foods and household goods
Imported cashew nuts will see a price increase as duties for unprocessed and processed varieties rise to 25 per cent, though a 15 per cent rate remains for domestic processors.
To safeguard the local fishing industry, a 20 per cent supplementary duty has been imposed on imported Pangas fish fillets. Prices for composite LPG cylinders are also expected to rise following the introduction of VAT at the import stage.
Additionally, the minimum valuation for imported natural honey has been raised by $2 to $7 per unit, while the valuation for betel nuts has increased by $0.25 per unit.
Higher tax pressures are also anticipated for imported sugar confectionery, coffee, ready-to-eat foods, lip liners, and lip gels.
Construction materials, imported luxury items
The price of construction rods is likely to increase due to higher VAT on various raw materials. Furthermore, increases in duties and assessment values are expected to raise the cost of imported tiles, sanitaryware, basins, foam, microwave ovens, bicycles and their parts, and toys.
Relief for essential commodities, spices
In a move to fulfil electoral promises and provide relief from previous price hikes, the Finance Minister proposed reducing the source tax on 60 essential items – including rice, wheat, potatoes, poultry, fish, onions, garlic, edible oil, and sugar – from rates of 5, 2, or 1 per cent down to 0.5 per cent.
Import duties on preparation materials for baby food (as industrial raw materials) will drop from 15 per cent to 10 per cent.
Additionally, the 5 per cent regulatory duty on spices such as cumin, cinnamon, cardamom, cloves, and black pepper has been completely withdrawn, as has the regulatory duty on imported dates.
Tax cuts for technology, healthcare, and gold
The budget proposes a total withdrawal of all import duties, regulatory duties, supplementary duties, and VAT on laptops, desktop computers, servers, printers, and monitors.
In the healthcare sector, the removal of 15 per cent VAT and 5 per cent advance income tax on dialysis filters is expected to reduce the cost of each kidney dialysis session by approximately Tk800.
Tax concessions have also been provided for pharmaceutical raw materials, including specific exemptions for nine new ingredients used in cancer medication.
Meanwhile, the source tax on gold supply has been slashed from 5 per cent to 0.5 per cent, and VAT on gold has been restructured to a fixed Tk2,500 per bhori.
Incentives for Green Energy, entertainment
Significant incentives have been introduced for Electric Vehicles (EVs), with the tax burden reduced from 93 per cent to 64 per cent for vehicles valued up to $25,000, and to 80 per cent for those up to $50,000.
New plug-in hybrid electric vehicles and EV charging station equipment will also benefit from tax breaks and reduced registration fees.
In the arts and media sector, regulatory duties on musical instruments like guitars and pianos have been withdrawn, while duties on cinematographic cameras and projectors have been cut from 15 per cent to 5 per cent.
Other items likely to see price reductions include imported meat, animal feed, POS machines, solar power equipment, and certain cosmetics like lipsticks and face washes.
