The Bangladesh Securities and Exchange Commission (BSEC) has entered a complex legal standoff with the judiciary after issuing a fresh directive requiring the conversion or liquidation of closed-end mutual funds, despite a standing High Court status quo order on the matter.

The regulator's latest move, issued yesterday (9 June), has unsettled the asset management industry and left fund trustees in a difficult position as they weigh the risks of regulatory non-compliance against the possibility of contempt of court.

The dispute stems from a regulatory framework introduced in May 2026, under which any closed-end mutual fund trading at a discount of 25% or more to its Net Asset Value (NAV) must either convert into an open-end fund or be liquidated.

On 7 May, the BSEC instructed trustees of non-compliant funds to begin preparations for the process after 12 May, citing the need to protect small investors from persistent inefficiencies and illiquidity in the sector.

The directive was subsequently challenged in the High Court by petitioner Rashidul Islam, who argued that the regulator was unlawfully altering the tenure of existing funds.

HC issues 2-month status quo

The High Court, on 24 May, issued a two-month status quo order on the conversion or liquidation of the affected funds. It also issued a Rule Nisi, asking the finance secretary, the BSEC chairman, the managing directors of the stock exchanges, the Investment Corporation of Bangladesh (ICB), and other respondents to explain why the regulatory order should not be declared illegal.

The court also questioned the BSEC's authority to enforce premature conversion or liquidation of funds whose tenures had already been extended under a 2018 government notification.

Despite the court order, the BSEC yesterday issued a new directive reiterating that trustees should proceed with the conversion process, placing market intermediaries in a difficult position.

A senior ICB official, speaking on condition of anonymity, said complying with the latest BSEC order could be interpreted as a direct violation of the High Court's status quo. To protect itself, the ICB sent a formal letter to the commission today (10 June) seeking urgent clarification and said it would not proceed until the legal uncertainty is resolved.

The commission's internal legal discussions also appear to be under scrutiny.

BSEC's emergency meeting tomorrow

According to a senior BSEC official, yesterday's directive was issued following advice from the commission's legal experts, who believed the order would not amount to contempt of court.

However, after receiving multiple letters from concerned trustees highlighting potential judicial consequences, the regulator has reportedly sought a second legal opinion.

The commission is expected to review the matter in an emergency meeting tomorrow (11 June) in an effort to avoid a direct confrontation with the High Court.

Currently, 22 of the 36 listed closed-end mutual funds are trading at discounts of 25% or more to their NAV, making them subject to the conversion mandate. The original deadline for initiating the process expires tomorrow.

Under the proposed framework, at least 75% approval from unit holders is required for either conversion or liquidation.

BSEC spokesperson Abul Kalam defended the reform, saying it is aimed at protecting investors. He argued that open-end funds offer greater liquidity, easier redemption and a more transparent exit mechanism for investors who have remained trapped in undervalued funds for years.

He emphasised that the reform is designed to address governance transparency and ensure that the market price of a fund's units more closely reflects its underlying assets.

According to market sources, out of around 34 listed closed-end mutual funds, at least 22 are now exposed to either liquidation or mandatory conversion into open-end funds under the new regulation.

As the deadline looms, the fate of billions of taka invested in these 22 mutual funds remains in limbo.

The BNP government is set to unveil a series of tax measures in the new budget for fiscal year 2026-27 today, offering incentives for green industries, digital entrepreneurs and technology manufacturers, while imposing higher taxes on tobacco products, conventional fuel-powered vehicles and selected imports.

The budget is also expected to reduce duties and taxes on essential commodities and healthcare-related products, while raising the tax-free income threshold for individuals, according to finance ministry officials familiar with the matter.

Finance Minister Amir Khosru Mahmud Chowdhury will place the Finance Bill 2026 in parliament in his first budget, setting a revenue target of Tk 604,000 crore for FY27, up from Tk 554,000 crore in the current fiscal year.Budget of big ambition

Budget of big ambitionThe budget is expected to outline broader tax reforms for businesses and introduce stricter compliance requirements, including measures to widen the tax net through greater use of Business Identification Numbers (BINs) and Taxpayer Identification Numbers (TINs).

As part of efforts to expand the tax base, the government may propose a 0.20 percent advance tax on the supply of goods to retailers. The amount collected would be small, at Tk 2 for every Tk 1,000 of goods supplied.

The government also plans to continue tariff rationalisation ahead of Bangladesh’s graduation from least developed country (LDC) status.

Import duty may be reduced on 69 product categories, regulatory duty withdrawn on 113 items and supplementary duty reduced or removed on nine products.

Value-added tax (VAT) has also been proposed on 20 previously exempt imported products, while customs valuation and protective measures could increase on a range of consumer and industrial goods.

RENEWABLE ENERGY, EVS AMONG BIGGEST BENEFICIARIES

Renewable energy equipment appears set to be one of the biggest beneficiaries in the new budget.

Import duty and other taxes could be waived or reduced on solar inverters, lithium-ion batteries, battery pack housing, solar photovoltaic modules, and steel and aluminium mounting structures.The proposals would complement plans to keep solar power generation tax-free until 2035 and offer a 5 percent tax rebate to solar electricity users.The electric vehicle (EV) ecosystem could receive similar support.Tax concessions have been proposed for EV manufacturing, battery production, charging infrastructure, and electric buses and trucks. Advance income tax on EV registration may also be reduced significantly.

The total tax on imported electric cars valued at up to $25,000 would fall from 93 percent to 64 percent, while import duties on EV chargers and charging stations would drop from 39.75 percent to zero.

To encourage consumers to switch to cleaner vehicles, the budget may increase the tax on petrol and diesel cars with engine capacities between 1,200cc and 1,600cc to 155.88 percent from 132.36 percent.

Nearly all major duty exemptions proposed for green and manufacturing sectors, including semiconductors, batteries, computers, consumer electronics, EV components and electric buses, would remain in place until 2030 or 2031.

The aim is to give investors a longer planning horizon.

FREELANCERS, CONTENT CREATORS AND STARTUPS

Among the most notable proposals is an expansion of tax benefits for freelancers. Until now, incentives have largely been limited to IT-enabled services.

The government may propose extending those benefits to all categories of freelancing income.

Content creators would also enjoy a full income tax exemption, reflecting the growing importance of Bangladesh’s digital creator economy.

Startup ventures and technology-based businesses could receive a zero percent turnover tax and full VAT exemption on local transactions, service imports and space rental until 2035.

Small and medium-sized enterprises (SMEs) may benefit from higher tax-free income thresholds, with turnover limits rising to Tk 50 lakh for general entrepreneurs and Tk 70 lakh for women and disabled entrepreneurs.

TECHNOLOGY AND SEMICONDUCTOR PUSH

Technology manufacturers also stand to gain. Existing incentives for mobile phone, computer, consumer electronics and digital device manufacturing could be extended until 2030.

The government may propose new benefits for semiconductor design, testing and packaging, signalling an ambition to position Bangladesh in higher-value segments of the global technology supply chain.

The SIM card tax of Tk 300 per connection is likely to be scrapped entirely.

Finance ministry officials estimate the move would reduce revenue by Tk 1,200 crore in the coming fiscal year, but expect the loss to be offset by wider digital inclusion and increased mobile usage.

RELIEF FOR HOUSEHOLDS, HEALTHCARE

The budget’s most immediate impact may be felt by households.

Source tax on rice, wheat, potatoes, onions, garlic, ginger, edible oil, fish and dozens of other staples would be cut to 0.5 percent from rates of up to 5 percent.

It is the government’s most direct intervention yet to ease inflationary pressures that have strained household budgets in recent years.

In healthcare, the proposals are targeted.

The withdrawal of VAT and advance tax on imported heart stents is expected to reduce the price of each unit by up to Tk 20,000.

Kidney dialysis costs could fall by Tk 800 per session following the removal of duties on dialysis filters, while intraocular lenses used in eye surgery could become cheaper by up to Tk 5,000 each.

The pharmaceutical sector could benefit from a further series of duty reductions aimed at lowering production costs and strengthening local manufacturing capacity.

The excise duty exemption threshold on bank balances is also proposed to rise to Tk 4 lakh from Tk 3 lakh, offering some relief to small depositors.

PROTECTION FOR LOCAL INDUSTRY CREATES LOSERS

The new budget may seek to provide greater protection for domestic industries through higher duties and other measures on imported products that compete with local manufacturers.

One key proposal is to increase import duty on raw and processed cashew nuts to 25 percent from the current 1 percent and 5 percent, respectively, with the aim of encouraging local cultivation and processing.

Higher protective measures are also expected on imports of ceramic tiles, sanitary ware, wash basins, cotton and rayon fabrics, PVC-coated textile products, curtain fabrics, cosmetics, foam products, honey and betel nuts.

Tobacco consumers are also likely to face a heavier tax burden.

Taxes and duties on cigarettes and other tobacco products are set to increase, pushing up retail prices.

Imported cigarettes and nicotine-related products may face additional levies as part of efforts to discourage tobacco consumption while boosting government revenue.

Importers of fossil fuel-powered vehicles could emerge as another affected group.

While the budget is expected to offer extensive incentives for electric vehicles, batteries and charging infrastructure, conventional petrol and diesel vehicles are unlikely to receive similar support, signalling a shift towards cleaner transport.

Towfiqul Islam Khan, additional director (Research) at Centre for Policy Dialogue (CPD), said the budget reflects an attempt to balance several politically important and fiscally demanding priorities at a time when revenue mobilisation remains the government’s biggest constraint.

He said persistent pressure on the operating budget continues to limit fiscal flexibility, while the need to finance electoral commitments further narrows room for discretionary spending.

According to him, although the budget signals an intention to stimulate private investment and provide some relief to consumers, these competing objectives also expose underlying tensions in the government’s fiscal strategy.

Khan added that the real test of the budget would not be the measures announced, but the government’s ability to strengthen tax governance, improve the efficiency of public spending and advance long-delayed reforms in public financial management.

US consumer inflation likely increased at its fastest pace in three years in May as the Middle East conflict raised prices of energy products, which would provide more ​ammunition for the Federal Reserve to keep interest rates unchanged this year.

The anticipated third straight month of strong year-on-year Consumer Price Index readings from the Labor Department ‌on Wednesday is expected to highlight mounting pressure on households as evidence suggests more consumers are dipping into savings to finance their spending. Inflation is likely to outpace wage growth in May for a second straight month, a development that could weigh on overall economic growth.

The soaring cost of living is a political liability for President Donald Trump and his Republican Party, seeking to retain control of Congress in the midterm elections in November. Trump won the 2024 presidential election in ​large part because of his promise to lower inflation, but has seen his approval rating tumble as frustration mounts over his handling of the economy.

“The top-line increase in inflation will outpace ​wage growth for the second consecutive month,” said Joseph Brusuelas, chief economist at RSM. “What that means is Americans are seeing their paycheck decline in real terms, which, if it were sustained, would tend to suggest we’re going to have a challenge around household consumption in the second half of the year.”

The Consumer Price Index likely increased 4.2 percent in the ​12 months through May, a Reuters survey of economists predicted. That would be the largest annual rise in the CPI since April 2023 and would follow a 3.8 percent advance in April. The CPI increased 3.3 percent ​year-on-year in March. It is expected to have increased 0.5 percent on a monthly basis in May after advancing 0.6 percent in April.

The US central bank tracks the Personal Consumption Expenditures Price Indexes for its 2 percent inflation target. All inflation measures are running well above the Fed’s target.

The national average gasoline price increased 8.8 percent in May to $4.60 a gallon, data from the US Energy Information Administration showed. At one point, gasoline prices had jumped by more than 50 percent since the ​US and Israel attacked Iran at the end of February.

Prices have retreated in recent weeks amid a ceasefire, leaving some economists cautiously hopeful that May could mark the peak in the CPI. Though restricted ​shipping in the Strait of Hormuz has raised fertilizer prices, that has not yet significantly pushed up food prices.

“There is a good chance that the year-over-year advance in headline inflation peaks for the moment in May, though, ‌of course, oil prices could surge again depending on the course of events in the Middle East,” said Stephen Stanley, chief US economist at Santander US. Capital Markets.

The report would follow on the heels of news last week that the economy posted a third straight month of above-expectations job growth in May.

The unemployment rate remained at 4.3 percent for a third consecutive month. Though financial markets have started pricing in a rate hike, economists continued to believe that the bar remained high for the central bank to tighten monetary policy.

Some argued that outside high airfares, there were no strong signs of the oil price shock ​bleeding into the services sector.

Excluding the volatile food ​and energy components, core CPI was forecast to have increased 2.9 percent year-on-year in May after rising 2.8 percent in April. The so-called core CPI was projected to have gained 0.3 percent on a monthly basis after rising 0.4 percent.

“If the core was to show some signs of pass through, higher energy costs being reflected into other categories as well, then that would ​be the story that would trigger the Fed rate-hike narrative,” said James Knightley, chief international economist at ING. “We’re in an environment where we’ve got ​a central bank that still considers the monetary policy stance to be somewhat restrictive.”

Part of the anticipated moderation in the monthly CPI rate reflects the fading boost from a one-time adjustment to rent measures after last year’s shutdown of the government prevented data collection. While the artificial intelligence spending boom is driving up prices of computers and software, those have a smaller weighting in the core CPI basket. The weighting is larger in the core PCE inflation basket.

A surprising used cars ​and trucks deflation has also helped to curb goods inflation. Economists were divided on import tariffs, with some viewing the ​pass-through as largely over while others said the duties continued to raise prices, especially those of apparel.

“The economy is nearing the end of the tariff pass-through phase,” said Diego Anzoategui, an economist at Morgan Stanley. “Our estimates suggest tariffs have lifted prices by ​about 63 basis points so far, with total pass-through closer to 70 basis points. We saw early signs of deceleration in March and expect that trend to continue.”

A business-friendly environment is being created where everyone can operate businesses smoothly and generate employment opportunities, says Prime Minister Tarique Rahman while also pledging investment-acceleration measures.

"We want to create opportunities for everyone to do business in a conducive environment and create jobs. The current budget has been prepared with that objective in mind," he told parliament Wednesday.

The Prime Minister says the government has undertaken a series of measures to simplify investment procedures and attract both local and foreign investors.

He made the remarks while responding to a question from Cumilla-10 lawmaker Md Mobasher Alam Bhuiyan during the question-answer session on the fourth day of the second session and first budget session of the 13th parliament. The sitting, which began at 3:00pm, was chaired by Speaker Hafiz Uddin Ahmad Bir Bikram.

The Prime Minister notes that restoring economic discipline and fostering business-friendly environment are essential for building a stronger economy.

He mentions that import-and export-registration services are now being provided online within a shorter timeframe through the Office of the Chief Controller of Imports and Exports.

To strengthen the investment climate, the government has updated the export policy and is in the process of revising the Import Policy Order 2026-2029 to enable foreign investors to enter the market more easily.

The government has also taken steps to remove non-tariff barriers to imports for export-oriented industries. The scope of free-of-charge (FOC) imports is being expanded for both bonded and non-bonded enterprises.

Also, import-payment procedures are being simplified, while importers will be allowed to import goods through contractual arrangements without letters of credit (LCs), irrespective of value limits.

Bangladesh has also adopted trade-facilitation measures in line with international standards to ensure faster and more transparent trade processes through the implementation of World Trade Organisation agreements.

The Prime Minister further says the Bangladesh Investment Development Authority is implementing a range of policy and institutional reforms to attract domestic and foreign investment, improve the ease of doing business and accelerate industrialisation.

Among the key initiatives, the government has moved to integrate the Bangladesh Investment Development Authority, Bangladesh Economic Zones Authority, Public-Private Partnership Authority and Bangladesh Hi-Tech Park Authority to reduce institutional complexities and improve service delivery for investors.

To make Bangladesh a more attractive investment destination, the government has also initiated reforms to simplify capital-and profit- repatriation procedures.

At present, foreign investors often face delays and uncertainty in remitting capital and earnings abroad following share sales, business transfers or closures due to complex valuation requirements and extensive documentation.

A national committee on capital repatriation, formed in coordination with Bangladesh Bank, has reviewed the existing framework and prepared a package of reform proposals. It is now at the final stage of approval.

"The government has also launched a comprehensive overhaul of licensing and approval procedures to make investment processes faster, simpler and more predictable," adds the Prime Minister.

The government is set to propose significant tax concessions on the import of pharmaceutical raw materials in the FY2026-27 budget to enhance the export competitiveness of Bangladesh's pharmaceutical industry.

The budget is also expected to include several measures aimed at reducing dialysis costs for kidney patients. In addition, VAT at the supply stage on cardiac stents and intraocular lenses may be withdrawn to reduce out-of-pocket healthcare expenses.

According to sources at the National Board of Revenue (NBR), the proposal includes adding 17 new basic raw materials to the existing concessionary import facility and reducing their import duty to zero. Stakeholders believe this will help Bangladeshi pharmaceutical products remain competitive in international markets.

To further strengthen the domestic pharmaceutical industry, the budget is also expected to propose zero-duty and zero-VAT treatment for the import of nine new raw materials used in the production of anti-cancer medicines.
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At the same time, the government plans to fully exempt import duties on an additional 51 raw materials used in the production of Active Pharmaceutical Ingredients (APIs). The primary objective is to boost local API production and reduce dependence on imported pharmaceutical ingredients.

Dialysis costs may decline

To lower treatment expenses for kidney patients, the government is considering a proposal to completely withdraw the existing 15% value-added tax (VAT) and 5% advance income tax on imported dialysis filters.

According to NBR sources, if the proposal is implemented, the combined VAT, tax and duty concessions could reduce the cost of each dialysis session by up to Tk800.

The government is also considering a full exemption from the existing 7.5% advance tax imposed on imports of blood tubing sets used in haemodialysis treatment. This measure is expected to significantly reduce dialysis expenses for kidney patients.

Physicians estimate that around 3.8 crore people in Bangladesh suffer from some form of kidney disease. Each year, between 30,000 and 40,000 patients develop kidney failure and require dialysis or transplantation.

A study by the Bangladesh Institute of Development Studies (Bids) found that 92% of families with dialysis patients in Bangladesh face significant financial hardship in covering treatment costs.

VAT on cardiac stents and intraocular lenses may be withdrawn

To reduce high out-of-pocket healthcare expenditure in Bangladesh, the budget is expected to propose the complete withdrawal of the existing 10% VAT at the supply stage on cardiac stents and intraocular lenses.

According to NBR sources, if implemented, the measure could reduce the price of each cardiac stent by up to Tk20,000. Similarly, the price of each intraocular lens used in eye treatment could fall by approximately Tk5,000.

Duty concessions proposed on raw material imports for medical equipment industry

The upcoming budget is expected to propose duty concessions on raw material imports to support the development of Bangladesh's medical equipment and components manufacturing industry.

According to sources at the National Board of Revenue (NBR), the proposal includes setting import duties at 15% on certain essential raw materials and 5% on several other raw materials used in the sector. The government is also considering extending the validity of the related notification until 30 June 2030.

Industry stakeholders say the country's medical equipment industry is still in a developing stage. Duty concessions on raw material imports would help boost local production, reduce import dependence and potentially lower healthcare costs.

According to the Bangladesh Association for Medical Devices and Surgical Instruments Manufacturers and Exporters, the domestic market for medical devices is worth around Tk15,000 crore and is growing at an annual rate of 15%. About 90% of total demand – from syringes to imaging and surgical equipment – is currently met through imports.

Proposal to cut duty on mortuary imports to 1%

The FY2026-27 budget is also expected to propose a significant reduction in import duties on mortuary equipment used for preserving dead bodies.

NBR sources said the existing 25% import duty on mortuary equipment may be reduced to 1%.

Stakeholders noted that mortuary facilities are essential equipment for hospitals, medical colleges and other healthcare institutions. High import duties increase procurement costs and place additional pressure on the healthcare system.

If implemented, the proposal would make mortuary equipment more affordable, enhance hospitals' capacity and improve the management of body preservation facilities.

The issue has gained attention recently after refrigeration units at the morgue of Dhaka Medical College Hospital became inoperative, resulting in the decomposition of around 20 bodies, including unidentified newborns, and causing foul odours.

Proposal to fully exempt duties, taxes on 21 assistive devices

The budget is expected to propose a complete exemption from all duties and taxes on the import of 21 categories of assistive devices used by persons with disabilities.

According to NBR sources, the proposal would fully exempt these special assistive devices from import duty, regulatory duty, supplementary duty and advance income tax.

Stakeholders believe the tax relief would improve mobility and independence for persons with disabilities, enhance their quality of life and reduce the financial burden on families and society.

Proposal to reduce duty on sewage treatment plants to 1%

The upcoming budget is also expected to include a proposal to reduce import duties on sewage treatment plants (STPs) to support modernisation of waste management systems in Dhaka, divisional cities and industrial facilities.

According to NBR sources, the current 5% import duty on STPs may be reduced to 1%.

Stakeholders say the proposed duty reduction would make it easier to establish wastewater treatment infrastructure and play an important role in implementing a circular economy model, particularly in industrial and urban waste management.

Amir Khosru walks a tightrope in making ends meet as he presents today his maiden national budget suiting the BNP-led government's economic priorities amid persistent inflationary pressure, sluggish private investment and weak employment generation.

The fiscal 2026-27 budget also happens to be the first of the BNP-led administration that assumed office following the February-12th general election held against the backdrop of political upheavals and uprising.Politics

The Finance and Planning Minister, Amir Khosru Mahmud Chowdhury, is set to place in parliament at 3:00pm the national budget with a record-high outlay.

It will also be the party's 17th budget since fiscal year 1976-77 and Bangladesh's 55th since independence.

The proposed budget is estimated at Tk 9.38 trillion which is equivalent to around 14 per cent of the country's projected gross domestic product (GDP) for FY2027.

Policymakers are expected to use the budget as key instrument for reviving economic activity, attracting investment and generating employment following a prolonged period of economic challenges from within and without.

The BNP government has repeatedly pledged to restore business confidence by addressing structural bottlenecks and reviving closed industrial units and creating a more investment-friendly environment.

The budget is, therefore, expected to contain a range of fiscal and policy incentives aimed at encouraging both new and existing private-sector enterprises.

Business leaders and economists are closely watching the budget for measures that could stimulate domestic and foreign investment, support entrepreneurship and strengthen industrial production.

Many expect tax incentives, regulatory reforms and sector-specific support programmes to feature prominently in the budget proposals.

At the same time, the government faces a difficult fiscal challenge.

The revenue target for FY2027 is projected at around 10.2 per cent of the GDP, a level many economists believe will be difficult to achieve given the country's historically low tax-to-GDP ratio.

Economists argue that broadening the tax base and revamping tax administration could help increase revenue collection.

However, they caution that achieving a significant jump in revenue within a single fiscal year may prove difficult without comprehensive reforms.

"To my mind, the tax picture might be some brighter once the tax base is widened," says Dr Zahid Hussain, an independent economist.

He also says that borrowing from the banking sector might lead to higher interest rate and crowding-out effect.

While policy measures aim at easing supply-side constraints could help boost investment and employment, "the benefits are unlikely to materialise immediately".

Structural reforms often require time before translating into higher private-sector activity, stronger job creation and sustainable economic growth.

"The budget's broader significance lies in whether it can balance the government's growth ambitions with the need to contain inflation, maintain macroeconomic stability and strengthen public finances," he notes.

The leading economists also say the effectiveness of the proposed measures, rather than their scale alone, will determine whether the government succeeds in reviving business confidence and accelerating economic recovery.

Facebook-parent Meta and Indian conglomerate Reliance Industries on Wednesday announced a deal to develop an AI-enabled data centre in the state of Gujarat, as the US tech giant scales its digital footprint globally.

The project, to be built in Jamnagar district, comes as technology giants race to expand computing capacity needed to support generative AI services in the world’s fastest-growing major economy.

Reliance will develop a 168-megawatt data centre to be delivered within two years, while Meta will lease capacity from the facility, the companies said in a joint statement.

The 168-megawatt facility will be developed by Reliance within two years, while Meta will lease computing capacity from it
The financial details of the agreement were not disclosed.

Meta chief Mark Zuckerberg said it was “proud” to partner with Reliance on its “first AI-enabled data centre in India”.

“This world-class facility in Jamnagar will help us scale our AI infrastructure globally while deepening our long-term investment in India’s economy,” Zuckerberg said.

Reliance chairman Mukesh Ambani described the announcement as India’s “first built-to-suit data centre for a global technology leader of Meta’s scale”.

India, home to more than a billion internet users, has seen a wave of investment announcements from global and domestic firms seeking to tap rising demand for cloud computing, artificial intelligence and data storage.

Google and Amazon have expanded their cloud infrastructure footprint in the country, while Indian conglomerates including Adani Group and Reliance have unveiled large-scale data centre plans.

Last week, Australian data centre operator AirTrunk said it would invest US$30 billion in India by 2030 to develop five gigawatts of data centre capacity.

Reliance is India’s biggest privately held conglomerate and its Jamnagar refinery is billed as the world’s largest.

Jamnagar is also home to what Reliance says is “one of the world’s largest wildlife rescue, care and conservation centres”.

Bangladesh’s economy is set to cross a historic milestone as the size of the Gross Domestic Product (GDP) is estimated to surpass the half-trillion-dollar mark in the current fiscal year (FY2025-26), according to provisional estimates released by the Bangladesh Bureau of Statistics.

The country’s nominal GDP is projected to rise to $501 billion in FY26, up from $456 billion in the previous fiscal year, marking a significant expansion in the size of the economy, according to the BBS report on Wednesday.

Alongside the higher economic output, per capita national income is estimated to increase sharply to $3,020, registering a rise of $251 or 9.06 per cent from $2,769 recorded in FY2024-25.

The latest estimates also indicate a moderate recovery in economic growth, while real GDP growth is estimated to grow by 4.14 per cent in FY26 from 3.49 per cent in FY25, although the pace remained below the pre-COVID trend.

Sector-wise performance showed mixed signals. The service sector continued to act as the main engine of growth, expanding by 4.59 per cent during the fiscal year, significantly increasing from the last fiscal year's growth of 4.35 per cent.

The agriculture sector also improved, posting 2.78 per cent growth compared with 2.42 per cent in the previous year, supported by stronger fisheries and livestock activities.

However, industrial growth slowed notably to 2.86 per cent from 3.71 per cent a year earlier, mainly due to weaker manufacturing performance and contraction in natural gas and crude petroleum extraction. 

The manufacturing sector is estimated to grow by 3.31 per cent, a significant drop from 5.83 per cent in the last fiscal. The large industry secured only 1.97 per cent of growth provisionally, with a massive fall from 5.94 per cent in the last fiscal.

The natural gas and crude petroleum sector contracted by 10.73 per cent in FY26, extending its negative growth streak for the fourth consecutive year.

Despite the expansion in GDP size, key macroeconomic indicators pointed to underlying pressure in investment and savings.

The overall investment-to-GDP ratio declined to 27.93 per cent in FY26 from 28.54 per cent in the previous fiscal year, indicating slower capital formation in the economy.

Private investment fell to 21.53 per cent of GDP, from 22.03 per cent, while public investment dropped to 6.40 per cent from 6.51 per cent in the last fiscal.

Savings indicators also weakened amid rising consumption pressure. Domestic savings dropped to 21.38 per cent of GDP from 21.98 per cent, while national savings declined to 26.93 per cent from 27.67 per cent in the last fiscal.

Consumption expenditure remained the dominant driver of economic activity, accounting for 78.62 per cent of GDP at current market prices, with private consumption alone representing nearly 73 per cent of the economy.

The government has disclosed a multi-year personal income tax roadmap outlining rates over two years during the interim government period and three subsequent years under a BNP-led government, according to budget proposals presented in the latest fiscal framework.

Under the plan, the highest personal income tax rate is set to rise to 35% for individuals earning above Tk3 crore from the 2028-29 tax year, up from the existing 30%.

The additional 5% tax will apply to the "super income group," while middle-income taxpayers will remain unaffected.

"We proposed an additional 5% tax on income exceeding Tk3 crore from tax year 2028-29 to 2030-31. This higher rate will apply only to a small number of wealthy and high-income taxpayers and not to middle-income taxpayers," a draft budget speech by Finance minister Amir Khosru Mahmud Chowdhury reportedly stated, according to finance ministry sources.

The revised rate is expected to take effect on income earned in the 2027-28 fiscal year.

The proposal also includes an adjustment to the tax-free income threshold. For the 2028-29 tax year, the exemption limit is set to rise to Tk4 lakh, up from Tk3.75 lakh under earlier interim government announcements for the 2026-27 fiscal year. The threshold is projected to increase further to Tk4.5 lakh by 2030-31.

Under the proposed slab structure, income up to Tk3 lakh will remain tax-free, followed by 10% tax on the next Tk3 lakh, 15% on the next Tk4 lakh, 20% on the next Tk5 lakh, 25% on the next Tk20 lakh, and 30% on income up to Tk2.64 crore. Income above Tk3 crore will be taxed at 35%.

For the 2030-31 tax year, the top rate is expected to remain unchanged, though adjustments are likely in lower tax brackets and exemption limits.

Bangladesh's top tax rate has fluctuated over time, standing at 30% for years before being reduced to 25% during the previous Awami League government and later restored to 30%.

Economists have long argued for higher taxation on high-income groups to reduce inequality, while some tax experts caution that higher rates could discourage compliance among existing taxpayers.

In the upcoming fiscal year, the government has set a target to utilise $13.27 billion, or Tk 1,62,000 crore, in foreign assistance through loans and grants -- an increase of 62 percent compared to the revised target for the current fiscal year.

According to the Ministry of Finance, $3.59 billion of this foreign assistance will be allocated as budget support, while the remaining amount will come in the form of project loans and grants.

The government is set to move away from its reliance on domestic borrowing to fund the budget deficit in the next fiscal year and opt for foreign borrowing in a bid to free up resources for the private sector and contain inflationary pressures, according to the finance ministry.

The overall deficit has been projected at Tk 2,43,000 crore, which is 3.6 percent of the GDP.

The outgoing fiscal year’s deficit target stands at Tk 2,00,000 crore. The government borrowed Tk 1,37,000 crore from domestic sources and Tk 58,000 crore from abroad, while about Tk 5,000 crore came in grants.

The budget plan for the next fiscal year says net domestic borrowing is expected to fall by 7.29 percent to Tk 1,27,000 crore, with bank borrowing cut by more than five percent to Tk 1,12,000 crore. Net foreign borrowing is projected to surge by over 89 percent to Tk 1,09,850 crore. The remaining Tk 6,150 crore will come from grants.

To reduce inflation and the cost of living, the government has taken an initiative to cut source tax on essential and agricultural products in the upcoming 2026–27 budget.

The new tax rate will come into effect after budget approval.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury is set to table the national budget for FY2026-27 in the House tomorrow afternoon (11 June).

According to the proposal, the existing source tax rates of 5%, 2% and 1% will be reduced to a uniform 0.5%.

Sources at the National Board of Revenue (NBR) said nearly 60 essential agricultural and consumer goods will come under this benefit.

These include rice, paddy, wheat, potatoes, livestock, ducks and chickens, fish, onions, garlic, ginger, salt, sugar, edible oil, seeds, and other daily necessities.

NBR sources said in recent years, high inflation and rising commodity prices have significantly increased the cost of living for ordinary people.

The decision to reduce source tax has been made to keep supply chains stable and ease price pressure on consumers.

The government is set to propose value-added tax (VAT) exemptions on the import of 36 raw materials used in pesticide production, aiming to boost local manufacturing, reduce reliance on finished imports and strengthen the domestic agrochemical industry.

Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to unveil the national budget for the fiscal 2026-27 in the parliament today.

At present, imported raw materials for local production face a combined tax burden of 30% to 58%, including up to 15% VAT, making domestic production less competitive.

National Board of Revenue sources said a proposal is also under consideration to offer tax rebates on raw material imports for fertiliser production.

Officials also said the government is moving to support self-sufficiency in zinc sulphate fertiliser, with a proposal to reduce import duty on its key raw material, zinc ash, to zero percent.

Tax rebates are also being expanded for veterinary medicines, with plans to extend zero-duty benefits to generic categories of imported veterinary drugs instead of limiting concessions to specific branded products.

Relief for fertiliser producers

A broader package of relief is also under consideration for fertiliser and pesticide inputs to reduce agricultural production costs.

A proposal seeks to fully exempt the existing 7.5% VAT at the business level on all types of fertilisers. Separately, there is also a proposal to withdraw the 7.5% advance tax currently imposed at the import stage on all pesticides used in agriculture.

Cashew import duties likely to rise

In a move to support local cultivation and processing, the government is planning significant increases in cashew import duties.

The tariff on raw cashew nuts (in shell) is proposed to rise from 1% to 25%, while duties on processed cashew nuts (shelled) may increase from 5% to 25%.

However, to support domestic processors, a special provision is likely to be introduced, allowing raw cashew imports for local processing industries at a concessional 15% duty.

Poultry, dairy machinery to get duty waiver

The budget also proposes full duty exemptions on machinery and equipment parts used in the poultry and dairy sectors to enhance domestic production capacity.

Several items are expected to be added to the relevant statutory regulatory order (SRO), bringing import duties on them down to zero percent.

In addition, duty concessions on raw materials for poultry, dairy and fish feed industries are set to be expanded, with three additional inputs likely to be included in the SRO and brought under zero-duty coverage.

The government has signed a loan and grant agreement with the World Bank to improve the country's health, nutrition and population services.

Under the agreement, the World Bank will provide $379 million in loan assistance, along with $25 million in grant support from the Global Financing Facility (GFF).

The financing will support two major projects under the Ministry of Health and Family Welfare, to be implemented between July 1, 2025 and June 30, 2029.

The first project, the Health and Nutrition Services Improvement and System Strengthening Project, will be implemented by the Directorate General of Health Services.

The project aims to improve the quality, accessibility and coverage of health and nutrition services across the country, with special emphasis on the Chattogram and Sylhet divisions, while strengthening the overall resilience and efficiency of the health system.

The second project, the Climate-Responsive Reproductive Health and Population Services Improvement and System Strengthening Project for Results, will be implemented by the Directorate General of Family Planning.

It aims to enhance the quality, equity and expansion of reproductive health and population services through climate-resilient systems and strengthened institutional frameworks.

The $379 million loan will be repayable over a period of 30 years, including a five-year grace period.

The financing carries a service charge of 0.75 percent per annum and an interest rate of 1.25 percent per annum on the disbursed amount.

A commitment fee of 0.50 percent per annum will apply to the undisbursed balance. However, the World Bank has refrained from collecting this fee in recent fiscal years.

Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and Jean Pesme, division director of the World Bank Group for Bangladesh and Bhutan, signed the agreement, according to a press release issued by the ERD.

Gold fell over 2 percent ‌to a more than two-month low on Wednesday as fresh fighting in the Middle East dimmed hopes of a resolution to the US-Israeli war with Iran, heightening concerns about inflation and interest rate hikes.

Spot gold was down 2.1 percent at $4,172.44 per ounce ​by 0849 GMT, its lowest level since March 23. US gold futures ​for August delivery shed 2.1 percent to $4,195.60.

“Gold remains a victim of growing inflation risks despite geopolitical tensions fuelling risk aversion. Renewed US-Iran hostilities have essentially sabotaged efforts to ​end the war,” said Lukman Otunuga, senior research analyst at FXTM.

Iran’s Revolutionary Guards said ​they had carried out missile and drone attacks on US military bases in Jordan, Kuwait and Bahrain in retaliation for American strikes on Iranian targets around the Strait of Hormuz.

The clashes mark one of ​the biggest exchanges in hostilities since the two countries agreed to a ceasefire in ​April.

Bullion has fallen more than 20 percent since the US-backed war with Iran began in late February. ‌The ⁠conflict has led to a surge in oil prices, stoking fears of inflation and higher interest rates.

While gold is seen as a hedge against inflation, higher rates typically weigh on the non-yielding metal.

Traders are currently pricing in a 68 percent chance of a US interest rate ​hike in December, according ​to the CME ⁠FedWatch tool.

Investors await May Consumer Price Index data later in the day and the Producer Price Index reading on Thursday, to gauge ​the Federal Reserve’s monetary policy stance after a strong jobs report ​last week ⁠raised rate hike bets.

“The incoming CPI report may heavily influence expectations around what actions the Fed takes in second half of 2026. On the technical front, gold’s decline below the ⁠200-day SMA (Simple ​Moving Average) is a bearish signal that may ​trigger additional selling pressure, aided by fundamentals,” Otunuga said.

The indices of the Dhaka stock exchange inched down today (10 June)as cautious investors booked their profit before the upcoming budget FY2026-27.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) decreased 3 points to settle at 5,517 today. The blue-chip DS30 index dropped 0.5 points to 2,080, while the DSES Shariah Index shed 3 points to 1,114.

Market turnover stood at approximately Tk1,210 crore, 18.43% lower than the previous trading session. Of the issues traded on the DSE, 149 advanced, 178 declined and 64 remained unchanged.

Market participants said the stock market was in a consolidation phase last week after experiencing a strong rally in recent weeks. Typically, following a significant rise, investors tend to book profits, leading to a temporary correction or stabilisation in the market.

However, the appointment of a new chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC) on the last trading day of the week boosted investor sentiment. Expectations that the new leadership would strengthen market governance, enhance transparency, and restore investor confidence prompted fresh buying interest, preventing the anticipated correction and pushing the market higher.

As a result, many cautious and short-term investors opted to lock in gains toward the end of the week, particularly in stocks that had posted sharp price increases over a short period. The resulting selling pressure contributed to the downward trend observed in the market at the beginning of this week, analysts said.

Meanwhile, the government's recent initiative to introduce a Tk20,000 crore stimulus package aimed at reviving closed and financially distressed industrial enterprises has also influenced market activity.

The announcement has fuelled speculative interest in shares of several listed companies that are either non-operational or fundamentally weak. Investors are betting that some of these companies could benefit from government support and eventually resume operations, improving their future business prospects.

However, market analysts noted that there is still no clarity regarding how the stimulus fund will be distributed, which companies will qualify for assistance, what conditions will apply, or when the funds will actually be disbursed.

They cautioned that the recent surge in the share prices of closed and weak companies is largely driven by expectations rather than confirmed developments and may not be sustainable in the long run.

Investors should therefore focus on company fundamentals, financial health, and business viability before making investment decisions, they added.

In its daily market review, EBL Securities said the capital bourse witnessed a flat session as profit-booking sentiment in recently rallied scrips offset selective buying in perceived attractive stocks, reflecting investors' cautious sentiment ahead of the upcoming national budget declaration.

According to the brokerage, the broad index opened on a brief positive note as bargain hunters remained active until mid-session; however, selling pressure emerged thereafter, wiping out the earlier gains and ultimately leading the market to close in a marginally negative territory.

On the sectoral front, the General Insurance sector dominated market turnover, accounting for 19.4% of total transactions, followed by Engineering at 12.4% and Textile at 11.7%.

Sectoral performance was mixed during the session. The Ceramic sector posted the highest gain, rising 3.5%, followed by Services with a 2.7% increase and Mutual Funds with a 2.0% gain.

On the other hand, the Miscellaneous sector suffered the sharpest decline, falling 4.2%, while Paper and Printing and Financial Institutions lost 2.0% and 1.2%, respectively.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended in negative territory. The Selective Categories Index (CSCX) fell by 44.6 points, while the All Share Price Index (CASPI) dropped by 73.5 points at the close of trading.

Bangladesh's economy has crossed a major milestone, with gross domestic product surpassing the $500 billion mark for the first time, according to provisional estimates released by the Bangladesh Bureau of Statistics today (10 June).

The latest data show that the country's GDP at current prices reached $501 billion in fiscal year 2025-26, placing the country in the half-trillion-dollar economy club. The economy was valued at $456 billion in FY25.

In local currency terms, the size of the total GDP stood at Tk61.2 trillion during the fiscal year.

The milestone comes after several years of economic challenges, including external shocks, elevated inflationary pressures and the continued depreciation of the taka against the US dollar.

Economists say the latest figures indicate that the economy is gradually regaining momentum despite lingering structural weaknesses.

According to the BBS, GDP growth rose to 4.14% in FY26 from 3.49% in the previous fiscal year. Per capita gross national income also crossed a significant threshold, rising by $251 to reach $3,020 for the first time.

Investment and savings indicators weakened during the year. The investment-to-GDP ratio declined to 27.93% from 28.54% a year earlier. Domestic savings fell to 21.38% of GDP, while national savings dropped to 26.93%.

Infographics: TBS
Infographics: TBS

Despite the increase in GDP growth, lower levels of investment and savings suggest that significant challenges remain for the economy.

Sector-wise performance showed that agriculture and services supported overall growth, while industry lost momentum.

The industrial sector recorded growth of 2.86%, down from 3.71% in FY25, largely due to a slowdown in manufacturing. Contributions from large, medium, small and cottage industries all declined.

Although the services sector expanded at a slightly faster pace, contributions from wholesale and retail trade, real estate, accommodation and food services, and financial and insurance activities weakened.

Dr AK Enamul Haque, director general of the Bangladesh Institute of Development Studies, said the 4.14% growth rate reflected a slowdown in economic activity.

He attributed the weaker momentum to post-election uncertainty, sluggish investment and broader economic pressures, noting that many entrepreneurs remain in a wait-and-see mode regarding new investments.

"The decline in industrial growth is a concern," he said, adding that prolonged Eid holidays and disruptions to production also contributed to the sector's weak performance.

Enamul noted that the final growth figure could change, as complete agricultural data, including major seasonal crops, have yet to be incorporated into the estimates.

He said despite the challenges the expansion of GDP to $501 billion signals continued economic growth and could support further job creation. Preliminary indicators suggest a gradual improvement in urban labour markets.

Looking ahead, he said the upcoming budget would be crucial in restoring economic momentum through investment-friendly policies.

Sayema Haque Bidisha, an economics teacher at Dhaka University, said, "An increase in the size of GDP and per capita income is certainly a positive development. It indicates that the economy is gradually recovering. However, we should not focus solely on the size of growth; we must also examine how widely the benefits of that growth are being distributed."

She added that political and economic stability play a crucial role in attracting investment, as investors generally seek environments that offer stability and predictability.

Sayema Haque noted that expecting very high growth in the agricultural sector is not realistic because the sector operates within natural constraints.

Expressing particular concern over the slowdown in industrial growth, especially in the manufacturing sector, she said, "For a country's structural economic transformation, the manufacturing sector is extremely important. A significant share of future growth is expected to come from this sector. Therefore, a slowdown in manufacturing growth should serve as a warning sign for us."

The economics teacher further noted that the sluggish pace of private-sector investment and the negative trend in manufacturing deserve serious attention from policymakers, as these sectors serve as the primary driving forces of the economy.

She said future policymaking should prioritise forms of growth that generate employment opportunities and help reduce income inequality.

Meanwhile, Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, described the country's entry into the half-trillion-dollar GDP club as a significant milestone achieved through decades of economic progress.

He said that governance weaknesses had prevented the economy from achieving even stronger growth.

While agriculture and services continue to contribute positively, the weakness in manufacturing remains a key risk for a labour-intensive economy, Masrur said.

To sustain the momentum and eventually move toward a trillion-dollar economy, he said Bangladesh would need to redefine its growth drivers and undertake major reforms in trade, investment and revenue administration.

The DSE Brokers Association of Bangladesh (DBA) has formally requested Bangladesh Bank to include bond defaulters' information in its Credit Information Bureau (CIB) database.

The association highlighted that no regulatory body currently maintains a formal record of bond defaults, creating a significant information gap that exposes investors to financial risks and fosters a culture of non-repayment within the fixed-income market.

The proposal was placed during a high-level meeting between a DBA delegation, led by its President Saiful Islam, and the Bangladesh Bank Governor yesterday. Discussions focused on the capital market's current state, challenges within the banking sector, and long-term reforms needed to restore investor confidence.

Saiful Islam pointed out that while bank loan defaulters are strictly monitored through the CIB, bond issuers who fail to honour repayment obligations often escape such scrutiny. Integrating this data into the CIB, the DBA argued, would boost transparency and accountability across the financial sector, curbing corporate issuers' tendency to default on debt securities.

Beyond bond defaults, the DBA submitted a comprehensive set of policy recommendations aimed at building a more resilient financial ecosystem. A key concern was the repeated recapitalisation of troubled banks using taxpayer money, which the association argued is fiscally unsustainable. It instead recommended restructuring distressed lenders through market-based investment, mergers, and private sector participation.

The brokers also emphasised the need to reduce the banking sector's over-reliance on large corporate borrowers. The DBA suggested that big corporate houses should be mandated to raise a portion of their capital through the stock market via bonds and equity. This shift would not only deepen the capital market but also diversify the risks currently concentrated within the banking system.

To improve market liquidity, the DBA proposed expanding access for general investors and non-primary dealer banks to government securities through non-competitive bids. It also called for a shift from the current T+2 share settlement cycle to T+1, arguing that faster settlement would reduce transaction risks, accelerate fund reinvestment, and align the Dhaka bourse with international standards. T+1 settlement or Transaction plus one day means that when you buy or sell a security (such as a stock or bond), the trade is finalized—meaning the buyer gets the asset and the seller gets the cash—exactly one business day after the trade is executed

On fiscal matters, the association noted that existing tax laws impose an added burden on retained earnings and stock dividends, discouraging banks and financial institutions from strengthening their capital bases. It urged greater coordination between Bangladesh Bank and the National Board of Revenue to address these inconsistencies.

Other proposals included launching an integrated local digital payment system to reduce dependency on international gateways and lower transaction costs, and raising the investment ceiling for banks in open-end mutual funds to boost institutional participation.

The US trade deficit shrank slightly in April, government data showed Tuesday, with energy exports bolstered by a supply crunch following war in the Middle East.

The overall trade gap narrowed 1.2 percent to $55.9 billion, said the Commerce Department. Economists surveyed by Dow Jones Newswires and The Wall Street Journal had expected a $56.1 billion figure.

US exports of crude oil and petroleum products have surged since US-Israeli strikes on Iran from late February, which triggered Tehran’s retaliation in virtually blocking the Strait of Hormuz.

The strait is a key waterway for energy transit, sending prices soaring.

“Energy exports are an important factor here with the US supplying more in international markets, largely from existing inventories,” ING chief international economist James Knightley told AFP.

This has “helped keep something of a lid on global energy prices that have been under upward pressure” from the supply shock, he added.

But he warned that the deficit widened when petroleum products were excluded.

“Should we get a resolution that leads to a recovery in oil and gas supply then the US trade deficit will quickly deteriorate once again,” he said.

In April, exports rose 2.6 percent to $327.1 billion, fueled by crude oil, fuel oil and other petroleum products.

Government data showed that exports of capital goods like computers and civilian aircraft also climbed.

While the global economy appears to be managing through the war, Nationwide financial market economist Oren Klachkin cautioned that “the standoff poses a threat to the US outlook as long as the strait (of Hormuz) remains closed.” US imports, meanwhile, rose by 2.0 percent to $383 billion in April.

This was boosted by imports of products like computers and semiconductors, thanks to an ongoing demand for hardware needed in the artificial intelligence buildout.

“With demand for the AI build out still elevated, we expect capital goods imports will remain solid this year,” US economist Grace Zwemmer of Oxford Economics told AFP.

Businesses have continued spending on high-tech goods linked to data centers, a key driver of economic growth, with President Donald Trump’s tariffs excluding some of these products.

“Tariffs could still impact trade flows this year, although likely to a lesser extent than in 2025,” Zwemmer added.

This comes as the Trump administration rushes to roll out more durable tariffs on goods from various trading partners after the Supreme Court struck down a swath of the president’s global duties in February.

The BNP government is likely to propose a new legal provision requiring individuals to disclose previously undeclared investments or property transactions and pay applicable taxes, along with a 20 percent penalty on the undisclosed amount, as part of efforts to strengthen tax compliance.

The proposal will be placed in Parliament on Thursday by Finance Minister Amir Khosru Mahmud Chowdhury in his budget for the 2026-27 fiscal year aiming to advance Bangladesh’s transition towards a more investment-driven and “trillion-dollar economy” through higher growth targets, regulatory reforms and expanded fiscal measures.

The total outlay of the budget is likely to be set at Tk 9.38 trillion, the largest national budget in the country’s history.

This will be the first budget of the BNP government this time following a landslide victory in the parliamentary election held on February 12 this year.

According to Finance Division officials, the budget is being prepared under the broad theme of “Economic Democratisation and Deregulation: Bangladesh’s Journey Towards a Trillion-Dollar Economy.”

The special proposal has been incorporated into a new section titled “Disclosure of Undeclared Investment” under the Income Tax framework.

According to the draft provision, no individual will be questioned by any authority regarding the source of funds used for previously undisclosed investments or property purchases, provided they voluntarily disclose the investment and pay the required taxes.

It covers transactions involving the purchase or sale of land, buildings or apartments where the actual transaction value exceeds the value stated in official documents.

In the case of property purchases, if the actual purchase price is higher than the declared deed value, the taxpayer will be allowed to legalise the undisclosed additional amount by paying income tax under existing rules.

Similarly, where the actual sale price of land, buildings or apartments exceeds the amount recorded in documents, the seller will be required to pay income tax on the undeclared portion of the proceeds.

However, the draft law stipulates that taxpayers availing themselves of the disclosure facility must also pay an additional tax equal to 20 percent of the undisclosed excess purchase or sale amount.

The undisclosed income regularised under the provision must be reported in the taxpayer’s income tax return under the schedule relating to “sources of funds and accumulated assets.”

The proposed facility will not apply if the taxpayer is already facing legal proceedings or investigations in Bangladesh or abroad over a predicate offence, including money laundering or other criminal activities linked to the undisclosed assets.

The measure is part of the government’s broader efforts to bring untaxed wealth into the formal economy while maintaining safeguards against the legalisation of proceeds derived from criminal activities.

The government is set to reduce the corporate tax rate for private universities, medical colleges, dental colleges, engineering colleges, and IT-focused private colleges from 15% to 10% in the 2026-27 budget, to be presented in parliament tomorrow (11 June).

The rate had already been cut once – from 20% to 15% – in last year's budget.

Corporate tax rates for all other sectors will remain unchanged, according to Ministry of Finance sources.

Officials said the reduction reflects the government's policy support for higher education and skilled workforce development, and is intended to encourage greater private-sector investment in IT, medical, and engineering education – fields considered critical to future economic growth. If approved, the revised rate will take effect from 1 July 2026.

The measure is expected to benefit more than a hundred private universities and numerous private medical, dental, engineering, and IT institutions across the country.
Listed companies currently pay a 20% corporate tax rate, while non-listed companies are taxed at 27.5%.

Banks, insurance companies, and other financial institutions face a rate of 37.5%, while mobile telecom operators are taxed at 40% to 45%.

Export-oriented garment manufacturers enjoy preferential rates of 10% to 12%, subject to specific conditions.

Sabur Khan, president of the Association of Private Universities of Bangladesh (APUB), welcomed the move.

"The reduction is a positive step. The cost of providing quality education – particularly in technology, medical, and engineering – continues to rise. Lower tax obligations will allow institutions to invest more in infrastructure, research, and academic standards," he told TBS.

Economists note that while Bangladesh's tax-to-GDP ratio remains among the lowest in South Asia – creating pressure to boost revenue – maintaining competitive tax rates is essential for attracting investment.

The proposed relief is seen as an effort to strengthen human capital development through greater support for higher education.