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The proposed national budget for fiscal year 2026–27 in Bangladesh includes significant tax and duty increases on several products. The plan raises the price limits for all cigarette categories and proposes a 300 percent supplementary duty on cigarette filter raw materials and 350 percent on nicotine. Locally produced alcohol would face a value-added tax of 500 taka per liter, while domestically produced liquor would also carry a 500 taka supplementary duty per liter. Import duties on cashew nuts are set to rise from 5 percent to 25 percent, which could raise market prices.

The proposal also increases taxes on luxury petrol, octane, and diesel vehicles, particularly those with 1200–1600 cc engines, and doubles the advance income tax on them. In contrast, the budget suggests lowering overall duties and taxes on imported electric vehicles, reducing the current 93 percent rate to 64 percent for EVs priced up to 25,000 dollars and 80 percent for those between 25,000 and 50,000 dollars. Advance tax on EV registration and fitness renewal may also be reduced.

Additional measures include higher VAT on certain steel products, a 20 percent supplementary duty on imported pangas fish fillets, annual advance income tax on helicopters, and an increase in gambling income tax from 20 to 25 percent.

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