The government has announced a series of tax incentives for semiconductor and chip-related activities in a bid to develop a domestic ecosystem for the high-tech industry and create skilled jobs.

In his budget speech for FY2026-27 on Thursday, Finance Minister Amir Khosru Mahmud Chowdhury proposed exempting regulatory duty, supplementary duty, value added tax (VAT) and advance tax on raw materials used in semiconductor or chip design, testing and packaging until June 30, 2031. A 1 percent import duty will still apply on such imports.

The proposal is a part of a broader effort to strengthen the country’s capacity in advanced technologies and diversify its export base.

The finance minister said Bangladesh produces a large number of engineering graduates each year, and that many Bangladeshi professionals already work in the global semiconductor industry.

He said the government has proposed the incentives for the sector “to harness their talent, create high-skilled employment and promote export-oriented growth”.

The budget also set out plans to establish specialist laboratories for artificial intelligence (AI), semiconductors, robotics, machine learning and big data analytics.

It also outlined initiatives to strengthen national capacity in space research, semiconductor technology, and earthquake and seismographic research.

The government pledged continued support for researchers through the Science and Technology Fellowship Trust, saying investment in research and innovation would be critical to developing new technologies and preparing young people for the demands of the Fourth Industrial Revolution.

Industry stakeholders welcomed the move, saying the incentives could help attract investment in chip design, testing and packaging services, areas where Bangladesh already has a modest presence.

MA Jabbar, president of the Bangladesh Semiconductor Industry Association (BSIA), welcomed the proposed incentives, saying the industry had long engaged with policymakers to secure support.

“We have 21 member companies already invested in the local semiconductor sector,” he said. “We met officials from the National Board of Revenue and later the finance minister to explain the need for policy support.”

According to Jabbar, the country has strong potential to develop a skilled semiconductor workforce, particularly in chip design and related services.

“So far, we have trained around 1,200 semiconductor engineers and expect to develop another 3,000 within the next two years,” he said.

While the country has yet to enter semiconductor manufacturing, local firms have established a foothold in chip design, a key segment of the global semiconductor value chain.

“Our current focus is design. We are also working to establish testing laboratories to gradually move towards manufacturing,” Jabbar said.

He noted that the expanding global semiconductor market presents opportunities for countries able to supply skilled talent and specialised services.

“If we are to capture a share of this market, policy support must continue. The incentives announced in the budget are a positive step,” he said.

Jabbar added that sustained support could generate high-skilled jobs, boost exports and attract foreign investment. “There is considerable potential for foreign direct investment in this industry. But first, we must build the ecosystem and strengthen the sector domestically.”

In a statement, BSIA welcomed the fiscal and policy support for the semiconductor sector, saying it formally recognises activities such as IC design, electronic design automation (EDA), outsourced semiconductor assembly and testing (OSAT), packaging and fabrication within customs, tariff and VAT frameworks.

The association said exemptions from customs duty, regulatory duty, supplementary duty, VAT and advance tax on eligible inputs would lower costs, help attract investment, create skilled jobs and strengthen the country’s position in the global semiconductor and deep tech industries.

Syed Almas Kabir, president of the Bangladesh Association of Software and Information Services (BASIS), described the incentives as a strategic step towards high-value technology manufacturing.

“The incentives are timely and aligned with global industry trends. However, their success will depend not only on tax benefits but also on the ability to develop skilled talent, strengthen infrastructure and foster industry-academia collaboration,” he said.

According to Kabir, the tax relief for chip design, testing and packaging aligns policy support with the growing engineering talent base. “The real impact will come when these measures are backed by investment in advanced laboratories, stronger university-industry partnerships and a dedicated VLSI talent pipeline,” he added.

He said countries such as Vietnam and Malaysia built successful semiconductor industries by developing complete ecosystems rather than relying solely on incentives.

Kabir also highlighted the potential role of the Bangladeshi diaspora, many of whom work at leading global companies including TSMC, Intel, Qualcomm, NVIDIA, AMD and Synopsys. A structured programme to engage these professionals, he said, could significantly accelerate the country’s semiconductor capabilities.

Every budget tells a story. Some focus on spending, some on growth and some on reform. Bangladesh’s proposed fiscal framework for FY2026-27 tells a different story: one of widening the tax net, tightening compliance and pushing taxpayers, both individual and corporate, into a more transparent and increasingly digital ecosystem. At first glance, some changes appear taxpayer-friendly. The advance income tax threshold for individuals has been raised from Tk 6 lakh to Tk 10 lakh, offering breathing space for salaried professionals and small entrepreneurs battling inflation. The government has also introduced incentives for timely return filing. Those filing by September will receive a 5 percent rebate, while delays beyond December will attract penalties. Tax compliance is no longer just about how much one pays, but also when.

But beneath these relief measures lies a far stronger enforcement framework. One of the most significant changes is the expansion of audit requirements. All companies must now submit audited financial statements along with an income computation sheet certified by a chartered accountant. Firms, associations of persons and Hindu undivided families with turnover above Tk 10 crore or capital exceeding Tk 5 crore will also fall under mandatory audit, while other entities will need certification from a CA, CMA or tax lawyer. Accounting records must also be preserved in line with company law requirements, effectively for up to 12 years for many companies.

Corporate tax rates remain largely unchanged, but with a meaningful twist. While standard rates stay at 27.5 percent for private companies and 22.5 percent for publicly traded ones, companies conducting all transactions through banking channels will enjoy reduced rates of 25 percent and 20 percent, respectively. This is formalisation by incentive.

The budget also takes a stricter position on tax deducted at source (TDS). Failure to deduct, collect or deposit withholding tax will trigger recovery of the shortfall, a 50 percent penalty and even disallowance of the related expenditure. Since TDS locks up working capital while refunds take months, the promise of electronic refunds within 120 days for certain self-assessed returns is welcome, provided implementation follows. Minimum tax remains a concern. The 1 percent levy on gross receipts stays unchanged, meaning companies will continue paying tax even in loss-making years. Tax disputes are becoming costlier. An appeal before the Commissioner (Appeals) will now require payment of 1 percent of the disputed tax demand. There is relief at the tribunal stage, however, where the pre-deposit has been reduced from 10 percent to 3 percent.

The capital market faces its own recalibration. Listed companies, excluding banks and financial institutions, must distribute at least 30 percent of after-tax profits as dividends or face additional tax. Stock dividends will attract a 10 percent tax, while capital gains tax on securities has been halved from 10 percent to 5 percent. These measures may reshape dividend policy and investor expectations, while the lower gains tax could improve market participation.

Unpaid interest claimed as a business expense for three years will now be treated as taxable income, and related-party loans below 12 percent interest may trigger deemed income adjustments. On the VAT side, reverse-charge VAT on imported services has widened, raising costs for foreign software, cloud platforms, consultancy and digital advertising. VAT audits now have clear timelines: documents within two months of notice, extendable by one month, with the audit completed within a year. The VAT appeal structure also imposes pre-deposit requirements at successive stages.

Foreign digital businesses with more than 100,000 users in Bangladesh may now fall within the tax net. TIN will be required for most bank accounts, and BIN for loans, utility connections and trade licence renewals. Cigarette, brick and gold prices may rise, while exporters gain relief through lower TDS on subsidies. The message is unmistakable: Bangladesh is moving towards a data-driven tax culture. For taxpayers, compliance itself has become a financial strategy.

The Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estate in Sherpur is grappling with poor infrastructure, inadequate utility services and security concerns, with entrepreneurs warning that the problems are discouraging investment and constraining industrial growth.

Established in 1987 on 15 acres in the Nouhata area, the estate began allocating plots in 2000. It now comprises 107 plots and 33 industrial units. Of these, 28 are operational and four are under implementation.

Although the estate currently employs around 700 workers, stakeholders say the figure could rise severalfold if all units became fully operational.

Business owners say unreliable utility services remain one of the biggest obstacles to growth.

“Gas shortages have disrupted production and prevented the estate from developing as expected,” said Fazle Nazim Parvez, proprietor of Modina Food and Beverage.

Md Kamal Hossain, proprietor of Taj Bread and Biscuit Factory, said the roads within the estate are narrow and in poor condition, with no alternative access route. He added that the drainage system also requires urgent improvement.

Security has emerged as another major concern. The estate has operated for nearly four decades without a boundary wall, leaving it vulnerable to criminal activity.

“Security is a major concern at the estate. The roads here become unsafe after evening. Although there are streetlights, they are not enough. Without a boundary wall, the area has become a haven for muggers and drug users,” said a factory owner, who requested anonymity.

Entrepreneurs have called for the construction of a boundary wall and main gate, the installation of adequate lighting and CCTV cameras, and the establishment of a permanent police check post or camp instead of occasional patrols.

They have also demanded better roads, improved drainage and a lasting solution to the gas crisis.

Businesspeople said several factories that once employed hundreds of workers shut down within a decade because of these concerns. They also blamed inadequate monitoring and support from the authorities for the closure of many units.

According to entrepreneurs, the unfriendly business environment, weak security and chronic gas shortages are deterring potential investors.

“I run businesses in several districts and had planned to establish a food-processing factory in the area. However, because of inadequate gas supply and security concerns, I have not been able to proceed, despite the availability of relatively cheap labour,” said another entrepreneur, also requesting anonymity.

Stakeholders said small industries in the area are not expanding as expected. Even after nearly four decades, they argue, the estate has yet to develop into a major industrial and employment hub and still lacks large-scale industries.

Md Anamul Haque, estate officer of BSCIC, said the estate has dedicated electricity and water supply systems, but frequent power cuts continue to disrupt production.

He added that although gas connections were provided to seven industrial units in 2008, supply interruptions and low gas pressure remain persistent problems. Many factories are still without gas connections, further hampering production.

Regarding complaints about the boundary wall, Md Ataur Rahman Fakir, deputy manager of BSCIC in Sherpur, said a lack of funding has caused the long delay in its construction.

Regular consultation meetings are held with entrepreneurs to discuss their concerns and explore the estate’s potential, he added.

Fakir said that issues such as new gas connections, low gas pressure and the establishment of a police camp have been raised with higher authorities, and efforts are underway to support existing businesses and attract new entrepreneurs.

SpaceX shares jumped 19 per cent in their Nasdaq debut on Friday, sending the company's value past $2 trillion to make it the sixth-biggest US company by value and turning Elon Musk into the world's first trillionaire.

Investors jumped at the ​chance to get a piece of Musk's sprawling empire spanning rockets, satellites and AI after the record-setting $75 billion IPO. More than 510 million shares worth about $84 billion changed hands, even though SpaceX is ‌currently unprofitable and generated only a fraction of the revenue brought in by similarly valued tech giants.

The launch was smoother than many observers expected, with trading kicking off late on Friday morning without the hiccups that had marred Facebook's debut in 2012. SpaceX shares ended the day at $160.95 a share to bring its value to $2.1 trillion. The gain pushed SpaceX's market value past Broadcom, with Amazon next in line at $2.6 trillion.Market trend analysis

The trade capped off a lead-up fraught with anxiety over the Nasdaq exchange's ability to handle the launch, particularly after a recent ​swoon in technology shares raised concerns about stratospheric gains in AI-linked names. Mega-listings from AI heavyweights Anthropic and OpenAI are waiting in the wings.

Investors across the spectrum, from large institutions to retail fans of Musk, ​ended the day euphoric.

"For many investors, SpaceX is the closest thing to investing in the railroads during the Industrial Revolution and they are willing to pay the Elon Musk ⁠premium for that opportunity," said Seth Hickle, chief investment officer at Mindset Wealth Management in Indianapolis.

Analysts and portfolio managers said investors should brace for volatility, particularly early in SpaceX's life as a public company, due to its small relative ​float and high valuation. SpaceX's $18.7 billion in revenue gives the company a price-to-revenue ratio of roughly 112, far above other megacap stocks.

"The question remains is, what happens in a couple of weeks from now. Right now, people want to ​bid the stock higher because it's a winner at this point. Whether it stays that way, that remains to be seen," said Todd Schoenberger, chief investment officer at Crosscheck Management in Washington, DC.

Retail investors received about 20 per cent of the allocation, far more than the typical IPO, with some even celebrating an allocation of one share.

SpaceX executives, including President Gwynne Shotwell and Chief Financial Officer Bret Johnsen, celebrated at the Nasdaq market site in New York's Times Square after ringing the opening bell on Friday. Musk held a separate event for ​employees in Texas.Personal finance e-book

'ALMOST SURREAL'

The IPO is a culmination of Musk's long-held ambitions in space and technology, and has stood out for rewriting Wall Street's IPO playbook and drawing legions of retail investors into the market.

“Elon deserves an extreme premium because of ​his track record and his vision for calling technology trends early," said Shaun Maguire, a Sequoia Capital partner who has led the firm's $2 billion investment in SpaceX. Sequoia Capital's investment is worth over $20 billion at the IPO price, a person familiar with the ‌matter told Reuters.

At $75 ⁠billion, the IPO's proceeds were more than double those of Saudi Aramco's record-setting 2019 IPO.

SpaceX's valuation could rise further should underwriters exercise their right to sell additional shares, a decision typically made within 30 days after the offering.

“Seeing the company that I joined when it was just some sketches on paper become this valuable is almost surreal," said Tom Mueller, a founding SpaceX employee who spent 18 years at the company and a shareholder, who is now CEO of Impulse Space, a spacecraft startup.

An estimated 4,000 current or former SpaceX employees will become millionaires based on the value of their SpaceX shares, according to Hill.com.Business strategy consulting

Although SpaceX's lack of profitability makes it ineligible to join the S&P 500 (.SPX), opens new tab, its expected fast-track inclusion ​in the Nasdaq 100 will soon make it a major ​holding for passive funds and ETFs that track ⁠the index, creating a fresh source of demand for its shares.

It will take about a month before SpaceX gets added to that index under Nasdaq's new fast-entry rules, as opposed to a typical wait of as much as a year.

Some analysts expect SpaceX's debut to trigger a reshuffling of investor portfolios, creating selling pressure on other technology heavyweights as ​funds rotate into the stock. On Friday, shares of other space firms and satellite companies declined sharply, with Planet Labs down 9 per cent and EchoStar down 11 per cent.

SpaceX said its ​market opportunity spans $28.5 trillion, a figure ⁠it called the largest in human history. With its leading position in space - the firm says its operation is responsible for more than four-fifths of the mass launched into orbit over the past three years - and revenues from Starlink, some investors said it has a strong foundation upon which to build.

Some analysts have already issued positive ratings on the company, but Morningstar analysts this month said it is more fairly valued at around $780 billion, and CFRA on Friday started coverage with a sell rating.

"This ⁠is not a ​name you're buying based on fundamentals. For me, the analogy is Amazon. This was a company that changed the way we live," said Nancy ​Tengler, CEO and CIO of Laffer Tengler Investments.

Trading in Shyampur Sugar Mills resumed on the Dhaka Stock Exchange today (14 June) after a one-day suspension imposed over an unusual surge in the company's share price, with the stock falling 8.75% to Tk218 following the reopening.

The DSE had suspended trading in the company's shares on Thursday, citing its regulatory authority to intervene in cases of abnormal price movements or suspicious trading activity in order to protect investors and ensure fair price discovery.

The exchange said the suspension was necessary because the recent rally in Shyampur Sugar's share price was not aligned with the company's financial and operational condition and warranted further examination for possible market manipulation or undisclosed price-sensitive information.

Market participants also noted that the sharp increase in the share price was inconsistent with the company's underlying fundamentals. According to market data, Shyampur Sugar Mills has remained completely inactive in sugar production since fiscal 2020-21 because of prolonged losses and outdated machinery.

The DSE said its principal objective was to ensure equal access to information for all investors and maintain orderly market conditions.

Under stock exchange regulations, trading can be suspended if listed companies fail to comply with reporting requirements, violate corporate governance rules, or fail to disclose material information, including operational shutdowns, loan defaults, or significant legal issues.

Brokerage firms, however, argue that while monitoring unusual price movements is necessary, suspending an entire stock may not always be the most effective approach. They suggest that regulators should instead focus on identifying suspicious Beneficial Owner (BO) accounts involved in potential manipulation.

The DSE said the company has been asked to provide explanations and supporting documents for the unusual price movement. A final decision on future trading will be made based on the company's response and the outcome of the investigation.

Overall, the case highlights the regulator's efforts to maintain market transparency and protect investors, even as such actions temporarily affect trading sentiment.

Mohammed Nader Khan, a sponsor and former chairman of Prime Bank PLC, has announced plans to sell 1.02 crore shares of the bank through the block market, according to a disclosure published on the stock exchanges today (14 June).

The shares are valued at approximately Tk30.54 crore based on today's closing price of Tk30 per share.

Nader Khan currently holds 4.40 crore shares, representing a 3.61% stake in the bank.

The proposed sale accounts for around 23% of his existing holdings.

According to the disclosure, the shares will be sold through the block market of the Dhaka Stock Exchange within the next 30 working days.

A block trade refers to a large, privately negotiated transaction of securities.

Following the sale, he will retain 3.38 crore shares in the bank, maintaining a significant ownership position.

Meanwhile, Prime Bank reported strong financial results for 2025, posting a consolidated net profit of Tk910 crore, up 24% from Tk732 crore in the previous year.

The bank's earnings per share rose to Tk7.84 in 2025 from Tk6.31 a year earlier, reflecting improved profitability.

The bank also maintained a solid financial position during the year.

Its net asset value per share stood at Tk40, while net operating cash flow per share reached Tk58.07, indicating strong liquidity and operational performance.

Total assets increased to Tk64,890 crore as of December 2025, underscoring continued business expansion.

The bank's Capital to Risk Weighted Assets Ratio stood at 18.07%, among the highest in Bangladesh's banking sector.

The bank's board approved a 30% dividend for 2025, comprising 25% cash and 5% stock dividends.

Shareholders approved the payout at the annual general meeting held on 21 May.

Bangladesh's gross foreign exchange (forex) reserves climbed to US$35.63 billion on Sunday after the country received more than $1.0 billion in budget support from the Asian Development Bank (ADB).Regional business directory

The country's gross foreign exchange reserves rose to $35.63 billion on Sunday from $34.73 billion on June 10 following the disbursement of ADB budget support funds, officials said.

According to the latest data from the Bangladesh Bank (BB), reserves measured under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), increased to $31.07 billion from $30.08 billion during the same period.

"We are now capable of meeting around six months' worth of import payment obligations with the existing reserves," a senior Bangladesh Bank official told The Financial Express (FE).

Bangladesh's actual imports, measured by the settlement of letters of credit (LCs), declined by 4.14 per cent to $50.43 billion during the July-March period of fiscal year (FY) 2025-26, compared with $52.61 billion in the corresponding period of the previous fiscal year.

Meanwhile, the opening of fresh LCs, commonly known as import orders, rose marginally by 0.35 per cent to $53.94 billion during the period under review, up from $53.75 billion a year earlier.

The central bank official said the country's gross forex reserves could exceed $36 billion by the end of June if the government receives additional external financing.

Earlier, on May 10, the gross forex reserves fell to $34.14 billion after Bangladesh settled $1.51 billion in import payment liabilities to member countries of the Asian Clearing Union (ACU).Personal finance e-book

Bangladesh Bank officials said stronger remittance inflows and lower import payment obligations have also helped improve the country's reserve position in recent months.

The central bank's purchase of US dollars from commercial banks has further supported reserve growth, according to officials.

Bangladesh Bank has bought a total of $6.42 billion from commercial banks since July 13 last year under the prevailing market-based, free-floating exchange rate regime, BB data showed.

High oil and gasoline prices and energy supply problems will not be solved overnight, despite an agreement to end the Iran war and open the Strait of Hormuz announced Sunday (14 June).

It will likely take months before energy companies can resume operations to the point of meeting the world's demand, according to energy experts.

The slow pace of the process of shipping and refining crude oil and doubts about the security of travelling through the strait mean the effect will not be seen immediately, they said.

Ships loaded with crude oil have been stranded in the Persian Gulf for more than three months, unable to safely travel through the waterway, through which about a fifth of the world's oil and gasoline supplies typically travelled before the war began.

"It's going to take time for people to feel comfortable and for insurance to be in place... particularly to get people on the ground to restart some of these assets," said Daniel Evans, global head of fuels and refining research at S&P Global Energy.

First, ships that have been stranded will have to exit the strait and then new tankers will have to come in to be loaded, Evans said.

"To bring a ship in, you need to be confident that you've got a big enough window of safety to bring it in, load it and move it out," he added.

Oil tankers also move slowly, he explained. It takes months to travel from the strait to distant countries, deliver the crude oil to a refinery for processing and then arrive at its final destination.

Bangladesh is set to receive 40 megawatts of electricity from Nepal via India for five months, starting from 15 June to November, under a tripartite agreement signed between Bangladesh, Nepal and India on 3 October, 2024.

Though it is symbolic given the demands that Bangladesh has now, both sides see potential to increase in the future, officials told UNB.

Nepal's hydropower potential and the increasing energy needs of Bangladesh provide ample opportunities to enhance energy cooperation between the countries.In the first ten months of the current fiscal, Nepal exported electricity worth almost Rs21 billion (about Tk25.6 billion) to India and Bangladesh. Last year, the number stood at above Rs13 billion.

Bangladesh and Nepal signed a Memorandum of Understanding (MoU) on Cooperation in the Field of Power Sector on 10 August 2018.

Under this MoU, a Joint Steering Committee (JSC) at the energy/power secretary level and a Joint Working Group (JWG) at the joint secretary level were established to facilitate collaboration and advance initiatives in the power sector.

The 7th meetings of JSC and JWG on Nepal-Bangladesh Cooperation in Power Sector were held in Dhaka on 26-27 November 2025.A tripartite Power Sales Agreement (PSA) to export 40 MW of electricity from Nepal to Bangladesh was signed on 3 October 2024 between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Ltd. (NVVN) of India.

The agreement came into fruition with the commencement of the export of 40 MW of electricity from Nepal to Bangladesh on 15 November 2024.As per the Agreement, Nepal has been exporting 40 MW of electricity to Bangladesh each year from 15 June to 15 November.

Negotiations are also underway regarding the 683 MW Sunkoshi III hydropower project on a joint venture basis.Bangladesh highlighted its commitment to working on long-term plans to ensure strategic partnerships and said that increasing trade volume between the two countries would be mutually beneficial.

Bangladesh Bank has removed Islami Bank's entire board of directors, including the chairman.

Mohammad Shahriar Siddiqui, assistant spokesperson and director of the central bank, confirmed the development.

He said the decision was taken today (14 June) under the Bank Company Act, 1991.

In a statement, the central bank said the board, including the chairman, was dissolved in the interest of depositors and the public.

It also added that, under Section 47(3) of the Bank Company Act, 1991, Bangladesh Bank Executive Director Mohammad Zahir Hussain has been assigned to exercise all powers and perform the responsibilities of the board.

Economists and business leaders have said the proposed budget, while compassionate and business-friendly, faces implementation risks due to ambitious macroeconomic targets, policy uncertainty and limited execution capacity.Entrepreneurship resources

The observations were made at a discussion titled “The Finance Bill 2026 Unveiled” organised by SMAC Advisory Services Ltd at Gulshan Club in Dhaka on Sunday evening.

Policy Exchange Bangladesh founder and CEO Dr. Masrur Reaz said the budget reflects a “green signal” in the current economic context, indicating a broadly supportive and accommodative stance.

“This is a compassionate budget. It has tried to support people and businesses. No major new burdens have been imposed,” he said.

He noted that the budget has attempted to ease pressure on households and businesses through tax measures and policy adjustments, offering some relief amid prolonged economic stress.

Dr. Reaz also described the budget’s policy direction as a “yellow signal,” saying it sends positive messages to investors, although concerns remain over execution and realism of targets.

He said a budget typically performs three key functions—tax and rate adjustments, allocation of public expenditure, and policy signalling.

“We usually expect the budget to solve everything, but in reality, it can only perform these three roles,” he added.Personal finance e-book

Meanwhile, Foreign Investors' Chamber Of Commerce & Industry (FICCI) President Rupali Chowdhury said listed companies and most industries are already paying multiple layers of taxes and duties depending on their business structure.

She said, “If both revenue and expenditure keep rising, the budget ultimately becomes expenditure-driven.”

She stressed that policy consistency and predictability are essential for business confidence, warning that frequent changes in corporate taxation create uncertainty.

Highlighting investment challenges, she said Bangladesh is competing with countries such as Vietnam, Indonesia and Malaysia for foreign direct investment, making policy efficiency and implementation capacity critical.

She also pointed to long-standing structural bottlenecks, including the lack of an effective one-stop service for investors, bureaucratic procedures across ministries, and infrastructure constraints.

“Our goal should be higher FDI, more employment, and ultimately higher tax revenue. But that requires transparency, accountability and a level playing field,” she said.Bangladesh economic report

She warned that unless structural weaknesses are addressed, economic pressures could intensify, with the tax burden increasingly shifting to compliant taxpayers.

The event was moderated by SMAC Advisory Services Ltd partner Snehasish Barua.

Among others, NBR First Secretary (Customs Policy Wing) Md. Tarique Hassan, Second Secretary (VAT Policy) Bodruzzaman Munshi, and Joint Commissioner of Taxes Bapon Chandra Das also attended the discussion.

Despite pledging to strengthen the bond market and expand alternative sources of financing beyond the banking sector, the BNP government has proposed imposing tax on income earned from zero-coupon bonds in the budget for the 2026-27 fiscal year.Market trend analysis

Since taking charge of the finance and planning ministries for the first time under the BNP government, Amir Khosru Mahmud Chowdhury has repeatedly stressed the need to revitalise the capital market and deepen the bond market.

In his budget speech on Thursday, he also announced plans to introduce new bond instruments.

However, the Finance Bill for the next fiscal year proposes withdrawing a tax exemption that individual taxpayers have enjoyed on income from zero-coupon bonds for nearly two decades.

To facilitate the change, the government has proposed amending the 6th Schedule of the Income Tax Act 2023.

Investors do not pay any tax on income generated from zero-coupon bonds at the moment.

According to the schedule, any income earned from zero-coupon bonds by individuals—excluding banks, insurers and other financial institutions—is deducted from total taxable income and therefore remains tax-free.

The exemption applies to bonds issued through a bank, insurance company or financial institution with prior approval from Bangladesh Bank or the Bangladesh Securities and Exchange Commission (BSEC).Personal finance e-book

Individual taxpayers also receive the same benefit when such bonds are issued by non-financial institutions, provided they have obtained prior approval from Bangladesh Bank or the BSEC.

The Finance Bill 2026 proposes abolishing this provision.

A zero-coupon bond is a debt instrument that does not pay periodic interest.

Instead, it is sold at a discount to its face value and redeemed at full value upon maturity.

The difference between the purchase price and the redemption value constitutes the investor’s profit.

The tax exemption was introduced in the Finance Act for FY2007-08 and took effect on Jul 1, 2007.

According to BSEC’s annual report, 11 companies raised Tk 66.75 billion through zero-coupon bond issuances in FY2023-24. In FY2024-25, one company raised Tk 1.71 billion through such bonds.

In March, City Sugar Industries, part of leading conglomerate City Group, received approval to raise Tk 13 billion through a bond issue to repay liabilities and invest in the sugar sector.

Akij Food and Beverage was also cleared to raise Tk 5 billion through zero-coupon bonds.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has welcomed the proposed national budget for the FY2026-27, describing it as broadly business-friendly and reform-oriented.

However, the apparel industry body has also urged the government to incorporate five key demands that it says were not addressed in the budget.

In a statement issued today (13 June), BGMEA said the proposed budget includes several positive initiatives such as policy stability, digitalisation of the tax system, simplification of business startup procedures, incentives for renewable energy, modernisation of the bond and VAT systems and tax benefits for SMEs and women entrepreneurs.

The association said these measures send a positive signal for industry and investment amid global and domestic economic challenges.

BGMEA noted that the ready-made garment (RMG) sector is currently facing significant pressure due to global slowdown and rising production costs.

According to the organisation, during the current fiscal year, export earnings from RMG declined by 3.41%, average unit price fell by 1.55%, and back-to-back L/C openings for raw material imports dropped by 7.93%. It also claimed that around 400 factories have shut down over the past three years.

Against this backdrop, BGMEA placed five key demands before the government.

The demands include reducing the export source tax on garments from 1% to 0.65% and keeping it stable for the next five years; fully waiving the 10% tax deduction at source on cash incentives instead of the recently reduced 5%; and removing the 1% double source tax on subcontract values, along with simplifying VAT exemption procedures for small and medium factories.

The association also called for ensuring that the 12% corporate tax rate for the garment sector and 10% rate for green factories are not increased due to other income sources.

BGMEA also demanded withdrawal of proposed additional import duties on polyester staple fibre (PSF), PVC resin and PET resin, considering the growing potential of man-made fibre-based garment exports.

The association said that after Bangladesh's graduation from the Least Developed Country (LDC) category, reducing production costs, ensuring affordable energy supply, and further simplifying customs and port procedures are essential to remain competitive in the global market.

The government is planning a Tk192.66 crore project to establish a national artificial intelligence (AI) hub and train a new generation of AI professionals, with most of the funding expected to come from a grant by the Korea International Cooperation Agency (Koica).

The project, titled "Fostering Innovative Technology Experts with a Focus on Artificial Intelligence (AI) in Bangladesh", will be implemented by the Bangladesh Hi-Tech Park Authority (BHTPA) under the ICT Division between July 2026 and December 2029.

Of the total cost, Tk159 crore will come from Koica and Tk33.66 crore from the government.

According to project documents, the initiative aims to establish a state-of-the-art AI Hub Center, develop AI curricula, strengthen industry-academia collaboration, support startups and create international employment opportunities.

The project targets training 865 AI and digital technology specialists, establishing 30 AI-based startups, publishing 10 international AI research papers and achieving an 80% employment rate for trainees. It also includes Korean language training for 230 participants and infrastructure development for the AI hub.

The ICT Division recently urged the Planning Commission to quickly approve the project's Technical Assistance Project Proposal (TAPP), warning that delays could jeopardise Koica's proposed $13 million grant.

According to an official letter, the project proposal was sent to the Planning Commission and the Economic Relations Division (ERD) on 1 December 2025, but approval is still pending. As a result, the ERD and Koica have been unable to sign the required Record of Discussion (RoD) and Terms of Reference (ToR).

The ICT Division said Koica is reviewing its project portfolio and considers signed RoDs and ToRs essential for funding decisions. The ERD has also cautioned that delays could put the grant at risk.

Project documents describe Bangladesh as being at a critical stage of digital transformation, with demand for advanced ICT and AI skills far exceeding current capacity. While AI has been identified as a strategic priority under the National AI Policy 2024, existing institutions lack the infrastructure and expertise needed for advanced training and research.

Officials said the proposed AI hub would help bridge the skills gap, support innovation and entrepreneurship, and strengthen Bangladesh's position as a destination for technology investment.

The initiative builds on the government's wider high-tech park strategy. Bangladesh has already established software technology parks in Agrabad, Chattogram and Jashore, alongside IT training and incubation centres in Natore, Rajshahi, Kuet and Cuet, while major projects such as Kaliakoir, Sylhet and Rajshahi Hi-Tech Parks are also operational or under development.

The government has identified persistent inflation as the country's most pressing economic challenge, pledging a combination of fiscal and monetary measures to bring price pressures under control and ease the burden on households in the next fiscal year (FY 2026-27).

The national budget has identified high inflationary pressure as the "most urgent economic challenge", with 12-month average inflation climbing to 8.63 per cent during the period from June 2025 to May 2026.

Amid sustained price pressures, the government aims to reduce average inflation to 7.5 per cent in fiscal year (FY) 2026-27 through a range of budgetary and monetary measures.

"Curbing high inflation remains our most urgent macroeconomic challenge," Finance and Planning Minister Amir Khosru Mahmud Chowdhury said in his budget speech.

Individual taxpayers will receive refund of the amount paid in excess of due taxes within 60 days of the processing of their tax returns.

The refund will be made under a landmark provision proposed in the Finance Bill 2026 accompanying the new budget.

The refunded amount will be transferred directly into taxpayers' bank accounts electronically, marking a significant shift towards a more taxpayer-friendly and transparent tax-administration system.

Tax experts have described the move as a paradigm shift that could help ensure tax justice and strengthen public confidence in the country's revenue-collection framework.

The new provision, introduced for the first time, will apply to individual taxpayers earning income from salaries, financial assets, and agriculture.

Under the proposal, tax refunds will be generated automatically through the online tax-return portal and transferred electronically within 60 days of the taxpayer's application.

However, the refund will be subject to the completion of return processing, which must be finalized within 120 days.

The Finance Bill further stipulates that "failure to transfer the refund within the prescribed timeframe will be treated as misconduct on part of the responsible tax official".

From the current fiscal year, the National Board of Revenue (NBR) has made online submission of income-tax returns mandatory for individual taxpayers, with only a few exceptions.

A senior tax official says tax -refund mechanisms are a common feature in developed countries and play an important role in building trust between taxpayers and tax authorities.

"We will introduce this system from the next fiscal year to assure taxpayers that they will not have to bear the burden of excess tax payments to the public exchequer," the official says.

Tax expert Snehasis Barua thinks the provision represents a major reform in the country's tax regime and would help strengthen taxpayers' confidence in the revenue administration.

"It is a significant change in tax law and a positive step towards improving trust between taxpayers and tax authorities," he says.

Debabrata Roy, Director-Legal, Regulatory & Scientific and Corporate Affairs at Nestlé Bangladesh, welcomes the initiative, describing it as "beyond imagination" in the context of Bangladesh's tax administration.

However, he notes that effective implementation would be the key challenge.

"The execution of the refund system will be crucial. If implemented properly, automated tax refunds will significantly enhance transparency and accountability in tax administration."

Oil prices fell over $1 on Friday (12 June), extending losses from the previous session after US President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week.

Brent futures LCOc1 fell $1.83, or 2%, to $88.55 a barrel at 0410 GMT, while US West Texas Intermediate (WTI) CLc1 crude dropped $1.6, or 1.8%, to $86.11.

Trump, who had threatened to hit Iran "very hard", called off planned strikes on Thursday, saying discussions with Iran had progressed and a peace deal that would reopen the Strait of Hormuz to shipping could be signed as soon as this weekend.

Iran's semi-official Fars news agency reported that Tehran had not approved the text of any agreement.

"While this could, of course, be yet another false dawn, the market's reaction has been both swift and decisive," said IG market analyst Tony Sycamore.

He added that even as oil prices correct downwards, "as long as the price can hold above support in the low $80s, the risks remain firmly skewed to the upside."

On Thursday, Iran announced "the closure" of the Strait of Hormuz, through which vessel traffic was already severely limited, saying it would fire on any ship trying to pass through the waterway.

The strait normally carries a fifth of global oil and liquefied natural gas shipments and Tehran's months-long blockade has kept energy prices elevated.

State media reported on Friday that Iranian forces prevented a tanker from transiting the Strait of Hormuz without coordination.

The US military said on social media that commercial ships continued to transit the waterway.

"We would be cautious about assuming that the extension of the ceasefire is a done deal. Even if it is, it could be fragile. And clearly, if nuclear talks do not progress, it could very easily fall apart," said ING analysts in a Friday note.

"We believe the market reaches an inflexion point in late July if we do not see oil flows resuming before then. This is when inventory levels and seasonally stronger demand push prices significantly higher towards $120-130 per barrel."

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day (bpd) from a previous 1.17 million bpd, marking its second straight downward revision.

The producer group also said consumption would rebound later, raising its demand growth forecast for 2027. It expects 2027 oil demand to rise by 1.73 million bpd, up 190,000 bpd from its previous forecast.

Finance Minister Amir Khosru Mahmud Chowdhury has said that large-scale investment must be channelled through the capital market instead of relying excessively on bank-based financing, arguing that Bangladesh needs a fundamental shift in its financial architecture.

He made the remarks while inaugurating a conference titled "Road for Trade, Growth and Economic Diplomacy 2026 – Navigating Risks: Leveraging Resilience" held at a hotel in Dhaka today (13 June).

The conference was jointly organised by the International Trade, Investment and Technology Wing of the Ministry of Foreign Affairs and the Bangladesh Investment Development Authority (Bida), aiming to serve as a working platform for informed policymaking on trade, investment, and economic diplomacy.

Speaking at the event, the finance minister said the current structure of short-term deposits and high-interest lending through banks is "not working well" for either financial institutions or businesses.

"High interest rates, short-term deposits and long-term financing mismatch are not good for anybody – not for banks, not for clients," he said.

He stressed that large investments should raise equity and debt directly from the capital market.

The minister said the existing financial system, heavily dependent on bank loans and high interest rates, is constraining business growth and increasing pressure on the economy.

He also noted that public finance architecture needs to be restructured in line with global changes in financial flows, where borrowing costs from multilateral and bilateral sources have increased significantly.

"The cost of finance is going up globally. Even multilateral lenders who used to lend below 1% have crossed 1% to 2%," he said.

Khosru also said the government is going to form a taskforce to oversee deregulation activities as part of its broader reform agenda to improve the business environment.

Bangladesh Bank Governor Md. Mostaqur Rahman on Friday issued a stern warning against financial fraudsters, declaring that those involved in money laundering will not be allowed to live in peace in Bangladesh.Bangladesh economic report

“We will not let those who have stolen the country’s money and smuggled it abroad stay in peace. The ongoing drive against money launderers will continue,” the central bank governor said.

He made the remarks while addressing journalists on contemporary economic issues, including money laundering and financial sector stability, in the post budget press conference, reports UNB.

The Finance Minister Amir Khosru Mahmud Chowdhury, Power and Energy Minister Iqbal Hasan Mahmud Tuku, NBR Chairman Abdur Rahman, Governor Md Mostaqur Rahman, many other ministers and secretaries of different ministries were present.

Stating that those who have accumulated wealth through illicit financial flows will face rigorous accountability, the Governor added that the central bank, in coordination with relevant state agencies, is actively working to identify and track down stolen assets.

Governor Rahman also assured that specific actions, including legal measures and international cooperation, are being leveraged to bring back the laundered money and penalize the perpetrators.

The central bank chief emphasized that ensuring discipline and transparency in the banking sector remains a top priority for the regulatory body, and no concessions will be made for those involved in rampant corruption and financial irregularities.Personal finance e-book

About the liquidity crisis of different banks including Islami Bank, the governor said that the central bank is taking steps to resolve the problem as soon as possible.

Bangladesh's stock market extended its rally for a fourth consecutive week, driven by optimism over the new leadership of the Bangladesh Securities and Exchange Commission (BSEC) and expectations of market-friendly measures in the proposed FY2026-27 budget.

Despite bouts of profit-taking, investor sentiment remained positive. Over the past four weeks, the benchmark DSEX index has gained 286 points, while average daily turnover has nearly doubled to around Tk1,500 crore, reflecting renewed confidence in the market.

The DSEX rose 45 points during the week to close at 5,520. The blue-chip DS30 gained 5 points to 2,073, while the Shariah-based DSES edged up 0.21 points to 1,067. The SME-focused DSMEX advanced 6 points to 1,115.

Trading activity strengthened further. Average daily turnover increased 11.4% to Tk1,288 crore from Tk1,156 crore a week earlier, taking total weekly turnover to Tk6,438 crore. Market capitalisation, however, slipped 0.43% to Tk6,90,011 crore.

Of the 412 issues traded on the Dhaka Stock Exchange, 183 gained, 173 declined, and 30 remained unchanged, while 26 saw no trading activity.

Market participants said many stocks battered by prolonged selling pressure have reached attractive valuations, encouraging investors to rebuild positions. Confidence was also supported by expectations that the new BSEC commission will strengthen governance, market discipline and investor protection.

The week began strongly, extending the market's winning streak to 10 consecutive sessions. Buying interest was concentrated in banks, financial institutions, insurance companies and fundamentally strong stocks trading at discounted prices.

The rally briefly paused midweek as investors booked profits and adopted a cautious stance ahead of the national budget announcement. However, sentiment improved later as expectations grew for measures to stimulate private-sector growth and support the capital market.

According to BRAC EPL Stock Brokerage, the market maintained an overall positive trajectory, closing higher on three of the five trading sessions. Strong performances by insurance, non-bank financial institutions, telecommunications, and fuel and power stocks outweighed weakness in banking and food sectors.

The General Insurance sector was the week's top performer, gaining 5.94%, while Telecommunications led among large-cap non-financial sectors with a 1.64% rise.

EBL Securities said investors remained optimistic about regulatory reforms under the new BSEC leadership and potential fiscal support in the budget. The brokerage noted that broad-based accumulation of beaten-down stocks drove the early rally, while selective buying later helped the market recover from the midweek correction.

Investor participation was highest in General Insurance, which accounted for 19.3% of total turnover. Engineering followed with 12.9% and Pharmaceuticals with 10.5%.

Among sectors, Services gained 7.8%, Ceramics 6.5% and General Insurance 6.2%. Miscellaneous fell 11.9%, while Travel & Leisure and Jute declined 2.3% and 1.3% respectively.

Analysts say sentiment is gradually improving after a prolonged downturn, supported by expectations of regulatory reforms and policy support. However, they cautioned that sustaining the rally will depend on the implementation of reforms and measures that encourage long-term investment.