- The Interim Government released the 2025-26 National Budget Speech on June 2, 2025
- The budget includes changes to direct taxes, VAT, and import-export duties
- Measures proposed to counter 37 percent US tariffs on Bangladeshi exports
- VAT is a key revenue generator; focus on reducing compliance gap and simplifying accounting
- Advance tax rate for industrial raw material imports reduced from 3 percent to 2 percent
- Advance tax rate for commercial importers increased from 5 percent to 7.5 percent
- Filing deadline for tax returns extended from 15 to 20 days for certain entities
- Adjustment period for advance tax, refund applications, and input VAT rebates extended to six months
- VAT rate for online product sales commission increased from 5 percent to 15 percent
- VAT and excise duty exemptions extended for LNG imports and computer monitors up to 30 inches
- Lease rent of aircraft for passenger transport included in exemption list
- Proposed reduction in import-related taxes to counter US tariffs
- Import duties withdrawn on 110 products and reduced on 65 products
- Budget emphasizes education, health, governance, civic facilities, and employment over GDP targets and mega projects
- First time in history, a cut in the national budget’s absolute size is proposed
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
