Finance Minister Amir Khasru Mahmud Chowdhury has proposed major VAT exemptions in Bangladesh’s upcoming fiscal year budget, focusing on business, investment, and employment growth. The proposal includes a complete withdrawal of the 15 percent VAT on services provided by content creators and freelancers, removal of the 300 taka tax on mobile SIM cards, and an extension of VAT exemptions for certain industries.

The budget also suggests full VAT exemption for local supply, service imports, and rental spaces used by startup companies until June 30, 2035. In the health sector, a 10 percent VAT exemption is proposed for heart rings and intraocular lenses, along with a 7.5 percent advance tax waiver on dialysis equipment. For agriculture, all fertilizers and imported pesticides would be exempted from VAT and advance tax.

Additionally, VAT exemption for local production of mobile phones, computers, and electric vehicles would continue until 2030. New VAT rates are proposed for imported frozen fish, trees, and jewelry services, while higher taxes are planned for tobacco products to discourage consumption.