The government has set a target to reduce inflation to 7.5 percent in the 2026–27 fiscal year. To stabilize prices, the proposed budget includes measures to lower source taxes on essential and agricultural products. About 60 items are expected to benefit from significant tax reductions, with the new proposal setting a uniform source tax rate of 0.5 percent, down from the current rates of 1, 2, and 5 percent.

According to the National Board of Revenue, the tax relief will apply to key commodities such as rice, wheat, potatoes, onions, garlic, ginger, salt, sugar, edible oil, and various seeds. Livestock, poultry, and fish are also included to boost the supply of animal protein. The government stated that this initiative aligns with its electoral commitment to ease the burden of rising living costs.

Market analysts believe that lowering taxes at the production and distribution levels will reduce business expenses and help stabilize retail prices. However, they emphasize that effective market monitoring and efficient supply management will be essential to achieve the desired results.