Dhaka: The interim government's Advisory Council has given final approval to the Tk 7,90,000 crore national budget for the fiscal year 2025-26 (FY26), which was initially presented on June 2 in a pre-recorded broadcast. The budget will officially come into effect on 1 July.
According to Bangladesh Sangbad Sangstha, the budget received its final clearance during a meeting of the Advisory Council chaired by Chief Adviser Professor Muhammad Yunus. The Finance Adviser had presented the budget speech titled 'Building an Equitable and Sustainable Economic System' on June 2 via a pre-recorded televised broadcast, as the Jatiya Sangsad is currently not in session. This marks the 54th budget for the country and the first under the interim government led by Professor Dr. Muhammad Yunus.
During the final approval, the government increased the allocation for the social safety net program by Taka 10,000 crore to Taka 91,297 crore, while keeping the overall size of the budget unchanged. Finance Adviser Dr. Salehuddin Ahmed stated at a press conference that adjustments were made to the initially proposed budget, including the removal of the provision allowing black money legalization through investment in flats and buildings. The budget aims for a 5.5 percent GDP growth while keeping inflation within 6.50 percent.
The government has allocated Taka 560,000 crore for the non-development sector and Taka 2,30,000 crore for the Annual Development Programme (ADP). The budget deficit stands at Tk 226,000 crore, down from Tk 256,000 crore in the current fiscal year, representing 3.62 percent of the GDP.
Finance Division Secretary Dr. Md Khairuzzaman announced that special benefits for government officials or employees have been increased to a minimum of Taka 1,500 for employed persons and a minimum of Taka 750 for pensioners. National Board of Revenue (NBR) Chairman Abdur Rahman Khan noted the abolishment of the provision regarding investment in buildings or apartments by paying special tax.
For publicly traded companies with at least 10 percent paid-up capital transferred through IPO or Direct Listing, a 22.5 percent tax has been imposed. However, if all types of income are made through bank transfer in the considered income year, the tax rate will be 20 percent. Other publicly traded companies will face a 27.5 percent tax, with a reduction to 25 percent if income is bank-transferred.
The tax rate for private educational institutions has been reduced to 10 percent from 15 percent. Property transfer tax collection rates have been lowered, and advance tax on the import of refined petroleum products has been decreased. VAT exemptions have been provided on certain services and imports, including beauty parlors run by women entrepreneurs and medical equipment.
The import duties on solar energy production equipment and raw materials for tire production have been reduced to promote accessibility and quality production. The budget also includes the addition of 10 items to the import notification for medical equipment, enhancing access to medical services.