Staff Reporter:
Five revenue-related ordinances issued during the interim government period are set to become law, the Cabinet Secretary Nasimul Ghani said Wednesday.
The cabinet has given both policy and final approval to the draft bills.
The cabinet meeting was held at the Secretariat under the chaired by the Prime Minister Tarique Rahman. Speaking at a briefing at the Press Information Departmen’s conference room after the meeting, the Cabinet Secretary confirmed the approval of the drafts.
The approved drafts include the Value Added Tax (VAT) and Supplementary Duty (Amendment) Act 2026; the Finance Act (FY 2025-26) 2026; the Certain Laws Relating to Finance (Amendment) (FY 2025-26) Ordinance 2026; the Excise and Salt (Amendment) (FY 2025-26) Ordinance 2026; and the Certain Laws Relating to Finance (Second Amendment) (FY 2025-26) Ordinance 2026.
The drafts were presented by the Internal Resources Division and received legislative and parliamentary vetting.
Regarding the Value Added Tax (VAT) and Supplementary Duty (Amendment) Act, 2026, Ghani said the ordinance was issued during the caretaker government period to expand VAT coverage, gradually normalize reduced rates to ideal levels, achieve targeted revenue, and improve the tax-to-GDP ratio. The ordinance had been in effect since January 9 last year for revenue collection. The cabinet approved its transformation into law following vetting by the legislative and parliamentary affairs divisions.
On the Finance Act (FY 2025-26) 2026, the Cabinet Secretary said the ordinance, issued on June 2 last year, amended the VAT and Supplementary Duty Act 2012, Income Tax Act 2023, and Customs Act 2023 to expand coverage, correct rates, and boost revenue targets. It formed part of the annual financial statement for FY 2025-26, as per Articles 86 and 87 of the Constitution.
Similarly, the Certain Laws Relating to Finance (Amendment) (FY 2025-26) Ordinance 2026 replaces the ordinance issued on June 26 last year to amend the Finance Ordinance, 2025. The ordinance had been used for revenue collection since issuance.
Regarding the Excise and Salt (Amendment) Act 2026, Ghani said the ordinance, issued on January 9 last year, amended the Excise and Salt Act, 1944 to achieve revenue targets and improve the tax-to-GDP ratio. Revenue has been collected under this ordinance since its issuance.
The Certain Laws Relating to Finance (Second Amendment) (FY 2025-26) Ordinance 2026 replaces the ordinance issued on October 6 last year to amend the Finance Ordinance, 2025. It also forms part of the FY 2025-26 annual financial statement and has been in effect for revenue collection since October 6, 2025, according to the Cabinet Secretary.
