Staff Reporter:
Prime Minister Tarique Rahman yesterday pledged to restore discipline in the country’s economy ex-pressing his government’s commitment to recover the money laundered abroad as quickly as possible.
The Prime Minister proposed several people-friendly amendments to the proposed national budget in-cluding reducing the tax burden on ordinary citizens, withdrawing the controversial provision of whiten-ing black money and promoting domestic industries and private higher education.
The Prime Minister presented the proposals to Finance and Planning Minister Amir Khasru while partic-ipating in the budget debate in the House yesterday.
Tarique Rahman said in the proposed budget, the tax-free income threshold for individual taxpayers has been proposed at Taka 375,000.
He requested the finance minister to increase the limit to Taka 400,000 for the 2026–27 and 2027–28 tax years, Taka 450,000 for the 2028–29 and 2029–30 tax years, and Taka 500,000 for the 2030–31 tax year.
Referring to the provision regarding voluntary disclosure of investments, he said, “We have observed public concern over this provision through newspapers, social media, MPs, and civil society representa-tives. Many people in our country do not register land at its actual market value.
On the issue of legalizing undisclosed income, the Prime Minister said, “Unfortunately, many people perceive this provision as another opportunity to legalize black money.
With full respect to public opinion, he requested the Finance and Planning Minister to withdraw this proposed provision.
Turning to private universities, he said private universities currently pay tax at the reduced rate of 10 percent. He proposed lowering this rate further to 5 percent.
However, there is one condition, he said explaining that universities benefiting from the reduced tax rate should invest in research and development, establish and operate language laboratories to help students become proficient in multiple languages, and provide tuition-free education to talented students from underprivileged backgrounds.
At this point, lawmakers from both the ruling and opposition parties applauded the Prime Minister’s proposal by thumping their desks.
The Prime Minister also proposed expanding tax exemptions for indigenous communities living in the three Chattogram Hill Tracts districts.
He said the proposed budget proposed for exempting income earned from economic activities in the Hill Tracts, excluding salaries and financial assets. He requested the finance minister to extend tax exemption on their salary income as well.
This benefit should apply equally to indigenous communities living in both the hill districts and the plains, he explained.
To promote shrimp farming and exports, the Prime Minister proposed eliminating all import duties, reg-ulatory duties, supplementary duties, and VAT on key production inputs such as aqua feed, feed addi-tives, probiotics, vitamins, and minerals.
He also urged the finance minister to remove taxes and duties on machinery used in the shrimp farming sector.
To support local industries, he requested concessional treatment for the import of raw materials used by manufacturing industries.
The Prime Minister further proposed removing the existing 10 percent supplementary duty on imported honey, which is used as a raw material in pharmaceutical and other local manufacturing industries.
He also requested for reducing the proposed 10 percent import duty on PVC and petro-resin to 5 percent as it’s widely used as industrial raw materials.
In addition, he urged the complete withdrawal of the proposed 10 percent regulatory duty on imported cold-rolled sheets, flat-rolled products, and potassium chlorate used as industrial raw materials.
The Prime Minister also requested the withdrawal of the proposed 15 percent VAT and 7.5 percent ad-vance tax on certain industrial imports.
For manufacturers of electrical cables, he proposed abolishing the existing 10 percent regulatory duty on imported copper.
He further requested reducing the proposed 15 percent customs duty on unprocessed cashew nuts to 5 percent.
The Prime Minister proposed extending existing concessional import facilities for raw materials used by local LED lamp manufacturers until June 30, 2030.
He also recommended extending similar tax concessions until June 30, 2030 for manufacturers of pre-fabricated buildings.
Highlighting support for freelancers and start-up entrepreneurs, the Prime Minister said the government has made an unprecedented allocation in this year’s budget.
“For the first time in Bangladesh the government has allocated Taka 500 crore for a Startup Fund,” he said.
He expressed his firm belief that this fund will provide our young entrepreneurs with tremendous oppor-tunities. Successful startups will not only benefit individual entrepreneurs but also create significant em-ployment opportunities for the country’s youth, he added.
Referring to digital advertising, the Prime Minister noted that many Bangladeshi businesses advertise through social media platforms, OTT platforms, search engines, online marketplaces, and other digital media.
“Because a 15 percent VAT currently applies, many businesses avoid formal payment channels and in-stead make payments through informal means. As a result, neither the businesses nor the government is benefit, and the state is losing the revenue.”
He therefore requested the finance minister to reduce the VAT on such advertising services from 15 per-cent to 5 percent, expressing confidence that businesses would then be encouraged to make payments through official channels.
The Prime Minister also proposed several additional VAT reforms aimed at creating a more business-friendly tax system.
He called for a review of VAT rates on gold, platinum, diamonds, and silver jewellery, including the fixed tax amounts imposed per bhori or per gram.
He further proposed granting a full VAT exemption on the 15 percent VAT applicable to revenue-sharing arrangements with the Bangladesh Telecommunication Regulatory Commission (BTRC).
He also requested a complete exemption of the 10 percent supplier-level VAT on all types of field equipment.
To promote domestic automobile manufacturing, he proposed reducing the 15 percent VAT on locally produced double-cabin pickup trucks and microbuses to 5 percent.
He noted that double-cabin pickups are widely used not only in business but also by political parties dur-ing rallies, meetings, and election campaigns.
The Prime Minister also urged the finance minister to consider easing documentation requirements by relaxing mandatory coefficient submission rules in certain cases to simplify VAT compliance.
In response to a proposal of the Opposition Leader for withdrawing all duties on bicycles, the Prime Minister requested the finance minister to examine it carefully and consider it to the extent possible.
