Dhaka: The Centre for Policy Dialogue (CPD) has acknowledged several positive initiatives in the proposed national budget for the fiscal year 2025-26 (FY26), citing tax reliefs, allocations and incentives for various sectors, and higher tax on harmful activities as beneficial measures for the economy.
According to Bangladesh Sangbad Sangstha, the private think tank praised the VAT exemptions on hybrid and electric vehicles, locally produced e-bikes, and ICU ambulances, all of which are set until June 30, 2030. The CPD’s analysis of the proposed budget was presented by Finance Adviser Dr. Salehuddin Ahmed on behalf of the interim government.
The analysis was jointly prepared by a CPD team led by Executive Director Fahmida Khatun, with contributions from Distinguished Fellow Professor Mustafizur Rahman, Research Director Khondaker Golam Moazzem, and other senior and research fellows. During a press conference held at a city hotel, Fahmida Khatun announced the introduction of an environmental surcharge on additional motor vehicles owned by individuals, a step aimed at discouraging luxury vehicle ownership and promoting environmental accountability.
Fahmida noted that the budget includes 41 projects focused on rural infrastructure development, such as roads, bridges, and markets, to enhance local connectivity and rural livelihoods. She recommended increasing allocations for these projects and prioritizing larger projects like the BSCIC Chemical Industrial Park in Munshiganj and the BSCIC Food Processing Industrial Park in Thakurgaon.
Emphasizing the importance of social insurance, Fahmida highlighted the Social Safety Net Programme (SSNP) as a ‘contributory’ and ‘progressive’ measure. She suggested allocating funds for the piloting and scaling of the National Social Insurance Scheme (NSIS).
Additionally, Fahmida recommended exempting the 5 percent VAT on English medium schools to alleviate the financial burden on middle-income families. She also proposed conducting a needs assessment to update beneficiary lists for stipend programmes, reinstating discontinued stipends in FY26, and increasing the overall allocation for stipends.
Mustafizur Rahman emphasized the need for the digitalization of the revenue collection system to meet the revenue collection target for the fiscal year 2025-26.