Brent crude oil prices fell to their lowest levels since early March as traders grew more confident about an imminent ‌peace agreement between the US and Iran.

Brent futures settled at $87.33 a barrel, down $3.05, or 3.37 percent.

US West Texas Intermediate (WTI) crude finished at $84.88, down $2.83, or 3.23 percent. That was WTI’s lowest level since April 17.

“What’s got the market going down is the Iranians saying there is a memorandum of understanding (with the US),” said John ​Kilduff, partner with Again Capital.

A memorandum between the US and Iran to halt the war in the Gulf could be signed ​as soon as Sunday, a Western source told Reuters on Friday, with Geneva emerging as the likeliest venue.

Iranian Foreign Minister Abbas Araqchi said on Friday that a memorandum of understanding had not yet been signed and could still change.

US ​President Donald Trump called off threatened air strikes against Iran on Thursday, while Iran’s Mehr news agency reported that final negotiations on the ​memorandum would focus on nuclear and economic issues but would exclude discussions about Iran’s missile programme.

Iran’s IRNA news agency, meanwhile, said nuclear talks would take place within a 60-day period after a memorandum was signed.

“Headlines are driving the market once again as confidence grows that an eventual deal will be struck and the Strait (of Hormuz) reopens,” said Tamas Varga, an analyst at PVM Oil Associates.

One caveat, however, is that global and regional oil stocks ​are still low and could drift lower, even with a deal, as it would take time to ensure uninterrupted oil flows, he added.

On Thursday, Iran ‌announced ⁠a complete closure of the strait, saying it would fire on any ship trying to pass through. Traffic through the strait, which normally carries a fifth of global oil and liquefied natural gas shipments, has been extremely limited as a result of the war.

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

One small step for SpaceX, but is it a giant leap for your portfolio?

“We believe the market reaches an inflection point in late July ​if we do not see ​oil flows resuming before then,” ING ⁠analysts said in a note.

“This is when inventory levels and seasonally stronger demand push prices significantly higher towards $120-130 per barrel.”

Again Capital’s Kilduff said an agreement couldn’t come at a better time.

“This really can’t go ​on much longer before there are shortages,” he said.

Goldman Sachs lowered its 2027 average Brent forecast ​to $80 a barrel ⁠on higher supply and lower demand, but expects prices to exceed the 2025 average on stockpiling of OECD commercial oil stocks and a security premium for disruptions.

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

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

The proposed national budget for FY2026–27 has set the stage for a sweeping transformation of the country's capital market, with a clear pivot toward long-term structural reform and sector-driven growth.

Presented by Finance Minister Amir Khosru Mahmud Chowdhury, the Tk9.38 lakh crore budget signals a decisive move away from short-term retail incentives toward building a deeper, more institutionalised market. The result is a sharply differentiated landscape where policy support is concentrated on high-growth industries, while traditional sectors and retail investors face new pressures.

Pharmaceuticals lead sectoral gain

Pharmaceutical companies are among the biggest beneficiaries, gaining from a series of duty cuts and tax exemptions.

The government has reduced import duties on key raw materials used in the production of cancer drugs, Active Pharmaceutical Ingredients (APIs) and medical equipment, with some items receiving full exemptions until 2030.

These measures are expected to lower production costs and enhance export competitiveness for major listed firms such as Square Pharmaceuticals, Beximco Pharma, Renata and Beacon Pharma.

According to EBL Securities, the policy support will strengthen Bangladesh's position as a growing pharmaceutical exporter while encouraging domestic manufacturing of high-value medical products.

Tech and telecom sectors get digital boost

The technology and telecommunications sectors have also emerged as key winners, driven by policies aimed at accelerating digitalisation and local manufacturing.

The budget proposes a reduction in Advance Income Tax (AIT) on IT hardware from 5% to 2%, along with full duty exemptions on laptops, desktops and computer components until 2030, measures expected to significantly reduce costs for both consumers and businesses.

In the telecom sector, operators such as Grameenphone and Robi stand to benefit from the withdrawal of a 20% withholding tax on regulatory payments and the elimination of the Tk300 SIM card tax. These changes are expected to improve cash flow, lower customer acquisition costs and potentially revive growth in the mobile market, according to a research report by Sheltech Brokerage.

EV and energy sectors gain long-term incentives

In a forward-looking move, the government has extended strong policy support to the electric vehicle (EV) and renewable energy sectors.

EV manufacturers will enjoy steep duty concessions, with only 3% import duty on raw materials for high-value-added production and tax exemptions until 2031, complemented by duty-free imports of charging infrastructure and reduced vehicle registration costs.

According to Sheltech Brokerage, companies such as Runner and Walton are expected to benefit from these incentives, which aim to position Bangladesh as a regional hub for EV manufacturing.

The solar power sector has also received a significant boost, with tax exemptions extended until 2035 and duty waivers on key components. Analysts believe these measures will improve project viability and attract fresh investment into renewable energy. Key beneficiaries are expected to include Summit Power, Beximco, Confidence Cement and Paramount Textile.

Agriculture and consumer sectors see cost relief

The agriculture sector has received targeted support through duty exemptions on key feed ingredients and VAT relief on fertiliser trading. These measures are expected to lower production costs for companies such as Index Agro and Aman Feed, with potential downstream benefits for farmers and consumers.

Consumer-facing industries are also set to benefit from reduced input costs. Lower duties on raw materials used in household cleaning products and personal care items are expected to improve margins for manufacturers, with Kohinoor Chemical and Marico among the key players in the sector.

Tobacco, steel under pressure

Not all sectors have fared well under the new budget.

The tobacco industry faces one of the steepest tax hikes, with supplementary duties of up to 350% imposed on key raw materials and products. The increased burden is expected to significantly compress margins for companies such as BAT Bangladesh.

The steel sector, meanwhile, is grappling with higher input costs following an increase in duties on ferroalloys, likely impacting major players such as BSRM and GPH Ispat in the near term.

Shipping faces regulatory tightening

The shipping and port sectors face new challenges under stricter regulations. The government has reduced the maximum allowable age for imported ships from 25 years to 10 years, significantly raising capital expenditure requirements. The mandatory holding period before selling vessels has also been extended from three to five years, limiting operational flexibility for firms such as Bangladesh Shipping Corporation and MJL Bangladesh.

Financial sector sees mixed impact

The financial services sector presents a mixed picture. Banks, non-bank financial institutions and insurance companies will benefit from tax exemptions on stock dividends, which are expected to support capital strengthening. However, the introduction of mandatory Tax Identification Number (TIN) requirements for opening most bank accounts may slow account growth, particularly in rural areas.

Policy shift reshapes market dynamics

At the heart of the budget is a structural overhaul aimed at transitioning Bangladesh from a debt-led to an investment-driven economy. The government has prioritised capital market development through reforms in taxation, listing procedures and financial instruments.

A key highlight is the shift in Tax Deducted at Source (TDS) from a "minimum tax" to an "advance tax" system, a move widely welcomed by market intermediaries.

According to a budget research paper by BRAC EPL Stock Brokerage, this shift effectively ends a persistent liquidity trap where non-refundable final tax settlements previously depleted operating capital regardless of a company's actual profitability. By making the tax adjustable and refundable, the government has addressed a decade-old grievance, potentially boosting the operational capacity of brokers, asset management companies and the stock exchanges.

Retail investors feeling the squeeze

Perhaps the most controversial aspect of the budget is its impact on individual retail investors. The government proposes reducing the tax rebate rate from 15% to 10% and lowering the maximum investment ceiling for rebates from Tk10 lakh to Tk7.50 lakh.

Zuhaier Shams, a senior research executive at Sheltech Brokerage, warned that these measures could discourage middle-class participation in the market.

Rehan Kabir of EBL Securities noted that the stock market remains a viable investment avenue, given the absence of the rigid restrictions found in savings certificates. However, the psychological impact of a reduced rebate may weigh on retail sentiment. The withdrawal of the 20% flat tax on dividend income in favour of standard corporate tax rates is also likely to affect the bottom line of market intermediaries.

The tax exemption for individual investors on income from zero-coupon bonds has been scrapped, after the government removed the benefit in the proposed budget for FY2026–27.

A zero-coupon bond is a debt instrument that does not pay periodic interest. Instead, it is issued at a deep discount to its face value, generating a return when the investor receives the full-face value at maturity.

With the removal of the tax benefit, individual investors who earn income from zero-coupon bonds must now include such earnings when calculating their taxable income and pay taxes accordingly, capital market analysts and investors say.

They said the tax exemption had gradually drawn individual investors toward zero-coupon bonds, and its withdrawal may discourage further investment in such instruments.

The government had earlier introduced the tax break to encourage individual participation in the zero-coupon bond market and support the broader development of the bond market. The rebate had been in place for nearly two decades.

The tax exemption on income from zero-coupon bonds was introduced for eligible investors through the Finance Act for FY2007–08, effective from 1 July 2007.

Under the sixth schedule of the Income Tax Act, subject to prescribed conditions, any income arising from a zero-coupon bond received by an individual, other than a bank, insurance company or financial institution, was excluded from the calculation of taxable income.

The conditions required that the zero-coupon bond be issued by a bank, insurance company or financial institution with the prior approval of Bangladesh Bank or the Bangladesh Securities and Exchange Commission (BSEC), or by any other institution with similar prior approval from either regulator.

For the purposes of this provision, the term "zero-coupon bond" also included zero-coupon Islamic investment certificates.

In the Finance Bill for FY2026–27, clause 25 of Part 1 of the sixth schedule, which provided the exemption, has been removed.

The issuance of various bond types including perpetual, subordinated, zero-coupon and coupon-bearing bonds has been on the rise following approvals from the capital market regulator, BSEC.

According to BSEC's annual report, 11 companies raised Tk6,675 crore through zero-coupon bond issuances in FY2023–24. However, only one company raised Tk171 crore through such instruments in FY2024–25.

In March this year, BSEC approved City Sugar Industries to raise Tk1,300 crore and Akij Food and Beverage to raise Tk500 crore through zero-coupon bond issuances.

Listed non-life insurer Global Insurance has declared a 10% cash dividend for the year ended 31 December 2025, maintaining the same payout as the previous year.

The dividend, equivalent to Tk1 per share with a face value of Tk10, was approved at a board meeting on Thursday following the adoption of the company's audited financial statements.

Despite the unchanged dividend, the insurer's earnings declined during the year. Earnings per share (EPS) fell 18.35% year-on-year to Tk1.29 in 2025 from Tk1.58 a year earlier.

However, cash generation improved significantly. Net operating cash flow per share rose to Tk1.64 from Tk0.26 in the previous year, while net asset value per share (NAVPS) increased slightly to Tk14.83 from Tk14.54.

Following the dividend announcement, the company's shares fell 2.06% to Tk38 on the Dhaka Stock Exchange (DSE), indicating a modest negative reaction from investors.

Global Insurance will hold its 26th annual general meeting (AGM) on 18 August through a digital platform to seek shareholder approval of the audited financial statements, dividend proposal and other agenda items. The record date has been fixed for 20 July 2026.

Listed on the stock exchanges in 2005 and classified under the 'A' category, Global Insurance conducts general insurance, guarantee and indemnity business, excluding life insurance.

As of May 2026, sponsor-directors held 35.32% of the company's shares, institutional investors owned 12.62%, and the general public held the remaining 52.06%.

The World Bank has revised Bangladesh's growth prospect into down trajectory as it forecast the Gross Domestic Product (GDP) growth at 4.6 per cent in the upcoming fiscal year (FY) 2026-27.
FE

It has also downgraded Bangladesh's GDP growth projection for the outgoing FY2026 by 0.8 percentage point to 3.8 per cent from its 4.6 per cent forecasted in January 2026 report, the Global Economic Prospect (GEP) report, unveiled by the World Bank on Friday.

Bangladesh's economic growth for the next fiscal is likely to be lowered by 1.50 percentage point to 4.6 per cent from that of 6.10 per cent, the global lender forecasted in its January GEP report.

The growth forecast by the global lender for the next fiscal has been cut to only 4.6 per cent when Bangladesh government has taken a target to achieve 6.5 per cent GDP growth in the next fiscal.

The global lender in its latest GEP report said the conflict in the Middle East is expected to slow global growth to the lowest rate since the onset of the COVID-19 pandemic amid higher energy prices, steeper inflation, and increased borrowing costs.

The global growth is forecast to slow to 2.5 per cent in 2026, down from 2.9 per cent in 2025, the WB GEP report added saying forecasts for two-thirds of economies have been downgraded relative to January this year.

Global growth is expected to improve to 2.8 per cent in 2027 but will remain 0.4 percentage point below the average during the 2010s.

The World Bank said: "The disruptions to commodity markets and international trade resulting from the conflict in the Middle East have led to shortages of energy and agricultural products and put upward pressure on energy and food prices in South Asian Countries (SAR)."Market trend analysis

Although the inflation has still generally remained within or below central banks' target ranges, but in Bangladesh the inflation has stayed elevated, alongside tight monetary policy.

"In Bangladesh and Nepal, domestic political uncertainties have waned, but private activity has been constrained by increased input costs and weaker investor sentiment. In these economies, the financial sector remains fragile, with subdued credit growth and deteriorating asset quality," the GEP report stated.

"Fiscal balances in the region are set to deteriorate in 2026. In several economies, including Bangladesh, Bhutan, India, and Maldives, fiscal deficits are anticipated to rise, partly owing to increases in subsidies intended to counteract the surges in energy prices," the WB report projected.

The World Bank said the weak growth in developing economies has stalled progress toward advanced-economy income levels. By 2028, developing economies other than China and India will have collectively experienced nearly a decade of no progress on narrowing their per capita income gap with advanced economies, the report finds.

"Developing countries have faced a series of challenges over the last decade," said Ajay Banga, President of the World Bank Group.

According to the report, the closure of the Strait of Hormuz has severely disrupted energy markets, with Brent crude oil prices projected to average $94 a barrel in 2026, 36 per cent above 2025 levels, assuming the worst disruptions abate in July.
Fertiliser prices are forecast to increase significantly this year, with knock-on effects for food prices. Together, these pressures are pushing up global inflation, which is expected to rise to 4.0 per cent this year, up substantially from 3.3 per cent in 2025, the GEP report said.

About the global economy, the WB said if energy supply disruptions prove more severe than currently assumed and are accompanied by substantial financial stress, global growth could fall to just 1.3 per cent in 2026, and inflation would rise to 4.4 per cent.

The Dhaka Stock Exchange (DSE) and the DSE Brokers Association of Bangladesh (DBA) have welcomed the proposed budget, saying its reform measures will strengthen the country's capital market, restore investor confidence and create a more investment-friendly environment.

In a statement, DSE Chairman Mominul Islam said the budget reflects the government's commitment to improving market governance and ensuring the long-term stability of the capital market.

He welcomed initiatives aimed at enhancing coordination among regulatory authorities and capital market institutions, saying the measures would improve transparency, accountability and overall market efficiency.

Mominul also appreciated the simplification of the Non-Resident Investor's Taka Account (Nita) operating process, noting that it would help attract both domestic and foreign investment while increasing market depth.

Referring to the DSE's ongoing reforms, he said the exchange has already taken steps to shift from the current T+2 settlement cycle to T+1 and eventually T+0, which would significantly improve settlement speed, safety and efficiency in line with international standards.

The DBA also termed the proposed budget timely and investment-friendly.

In a separate statement, DBA President Saiful Islam said the budget demonstrates a strong commitment to building a transparent, credible and robust capital market capable of supporting long-term investment financing, industrialisation and economic growth.

He highlighted several key initiatives, including strengthening the regulatory framework, enhancing investor protection, improving governance and accountability, expanding the bond market, promoting corporate bonds, mutual funds, green bonds and sukuk, simplifying the listing process, making disclosure systems more transparent and business-friendly, introducing municipal bonds, and encouraging equity-based financing over excessive reliance on bank lending.

According to Saiful, these initiatives could open a new horizon for the development of Bangladesh's capital market.

He added that the budget's clear policy commitment to positioning the capital market as a key driver of the economy, if effectively implemented, would attract both domestic and foreign investment, enable entrepreneurs to raise capital more easily, and accelerate employment generation and industrial growth.

Noting that the story of Bangladesh-China relations extends far beyond the fifty years of formal diplomatic ties, experts from both countries at a book launching-cum-seminar have said the next 50 years promise even greater opportunities for both nations and for the wider region with vision, patience, and continued cooperation.

Ahead of Prime Minister Tarique Rahman's scheduled visit to China later this month, the experts highlighted that understanding history is essential for shaping the future and that the friendship between Bangladesh and China, nurtured over generations, remains a bridge connecting civilisations, economies, and people.

The event marking the formal launching of the book titled "50 Years of Bangladesh-China Relations: Achievements, Challenges & Prospects" was held at Baridhara in the capital on Friday (12 June) evening as part of the Cosmos Dialogue hosted by Cosmos Foundation, the philanthropic arm of the Cosmos Group.

The seminar was chaired by Cosmos Foundation President Iftekhar Ahmed Chowdhury. The book is co-edited by Cosmos Foundation Chairman Enayetullah Khan and Professor Imtiaz Ahmed.

Air Vice Marshal (retd) Altaf Hossain Chowdhury, MP, distinguished fellow of the Centre for Policy Dialogue and eminent economist Debapriya Bhattacharya, Barrister Ahmad Bin Quasem Arman, MP, Chargé d'Affaires of the High Commission of Singapore in Dhaka Mitchel Lee, Cultural Counsellor at the Embassy of China Li Shaopeng, Executive Member (Planning and Development) of the Bangladesh Economic Zones Authority Major General (Retd) Md Nazrul Islam, Director General of the Bangladesh Institute of International and Strategic Studies Major General ASM Ridwanur Rahman, Chinese Enterprises Association in Bangladesh President Han Kun, and former deputy press secretary of the interim government Abul Kalam Azad Majumder were also present.

The speakers discussed the PM's upcoming official visit to China, as the two countries eye new investment agreements, infrastructure projects, and economic initiatives that are expected to strengthen cooperation further.

Plans for the modernisation of Mongla Port, the Teesta River Comprehensive Management and Restoration Project, and discussions on a future Free Trade Agreement were seen as important steps toward shared prosperity.

The government has proposed the introduction of a fully digital e-loan that will allow individuals to obtain up to Tk 50,000 through an online process, aiming to improve access to finance and expand financial inclusion.

Finance Minister Amir Khosru Mahmud Chowdhury unveiled the proposal while presenting the national budget for fiscal year 2026-27 in parliament on Thursday.Personal finance e-book

According to the budget proposal, loans of up to Tk 50,000 may be provided for a period of 12 months through a fully digital process to simplify the receipt and disbursement of small loans.

"The introduction of e-loan has been allowed to simplify the receipt and disbursement of small loans. Loans of up to Tk 50,000 may be provided for a period of twelve months through a fully digital process," the finance minister said in his budget speech.

Bangladesh must engage global-scale port operators to modernise its ports, improve logistics performance and remain competitive in international trade, Bangladesh Investment Development Authority (Bida) Executive Chairman Ashik Chowdhury said today (13 June).

He made the remark while presenting a paper at the conference titled "Roadmap for Trade, Growth and Economic Diplomacy 2026 – Navigating Risks: Leveraging Resilience" at a hotel in Dhaka.

The conference was jointly organised by the International Trade, Investment and Technology Wing of the Ministry of Foreign Affairs and the Bida.

Referring to the World Bank's global container port ranking, Ashik said Bangladesh ranked 364th among 400 ports worldwide, underscoring the urgent need to improve port efficiency and logistics capacity.

"This tells us our work is cut out, and we are a very proud nation," he said, adding that engaging international-scale operators in port management has become essential to boosting competitiveness.

He said the ranking reflects the scale of challenges facing Bangladesh amid rapidly changing global trade dynamics and stressed that the country must adapt to the pace of change in the global economy.

Acknowledging concerns raised by businesses, Ashik said investors frequently point to gas shortages, logistics bottlenecks and excessive regulation as key obstacles.

He said the government is addressing these challenges through a broader reform agenda and described the proposed FY2026-27 budget as one of the most investor-friendly budgets in recent years, with a strong focus on deregulation.

The Bida chief also highlighted sector-specific reforms, pointing to recent policy changes in the shrimp export sector as an example of targeted efforts to improve competitiveness.

On energy, he said reliable and uninterrupted power supply remains one of the most critical requirements for investors, particularly in a manufacturing-led economy like Bangladesh.

To address the issue, he said the government plans to expand renewable energy generation by allocating unused public land for large-scale solar projects and simplifying rooftop solar installation policies.

Ashik also stressed the need to diversify Bangladesh's energy sources, noting that a dedicated government team is working on long-term solutions in the oil and gas sector.

He acknowledged that Bangladesh is lagging behind by five to ten years in energy infrastructure development and said priority is being given to projects including additional floating storage and regasification unit (FSRU) capacity, a land-based LNG terminal and the expansion of the Eastern Refinery Limited's second unit (ERL-2).

The benchmark index of the Dhaka Stock Exchange (DSE) closed slightly higher on Thursday as investors positioned themselves ahead of the national budget announcement, amid expectations of market-friendly measures and regulatory reforms.

The newly reconstituted Bangladesh Securities and Exchange Commission (BSEC) on Monday withdrew the floor price restrictions imposed on the two companies, marking the end of a controversial market intervention that had remained in place for nearly four years.Regional business directory

Finance Minister Amir Khosru Mahmud Chowdhury unveiled the FY2026-27 national budget in parliament on Thursday afternoon, with investors closely watching for initiatives aimed at revitalising the capital market and supporting broader economic growth.

Investor sentiment also received a boost as the newly reconstituted Bangladesh Securities and Exchange Commission (BSEC) recently lifted the floor price restrictions on Beximco and Islami Bank Bangladesh PLC, bringing an end to a controversial market intervention that had remained in place for nearly four years.

The DSEX, the benchmark index of the premier bourse, increased by 3.57 points, or 0.06 per cent, to close at 5,520.

The DS30 index, comprising leading blue-chip companies, decreased by 7.18 points to 2,072, while the DSES index, which tracks Shariah-based stocks, increased by 0.53 points to 1,114.

On Thursday, market participation improved, with turnover on the DSE rising to Tk 12.39 billion, compared with Tk 12.10 billion in the previous session.

Although Beximco shares hit the lower circuit breaker for a third straight session, Islami Bank rebounded sharply after two days of correction following the withdrawal of the floor price. Their impact on the broader market remained limited.Market trend analysis

Beximco was excluded from the benchmark index in the latest annual rebalancing, while around 88 per cent of Islami Bank's shares are held by sponsor-directors, reducing the stocks' influence on overall market movements.

Market operators said investors are increasingly hopeful that the reconstituted BSEC will prioritise transparency, strengthen corporate governance and restore confidence in the capital market. Repeated government assurances regarding stock market development have also encouraged investors to increase their exposure to equities.

Losers outnumbered Gainers on the DSE floor. Of the 391 issues traded, 157 closed higher, and 189 ended lower, while 45 remained unchanged.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) declining by 48.50 points to 15,196, while the Selective Categories Index (CSCX) declined by 45.6 points to 9,320.

The highest annual tax rebate on investments in listed securities will be reduced by one-fourth, or 25 per cent, to Tk 0.75 million if the draft Income Tax Act 2027 is approved by parliament.

Under the proposed act, the maximum eligible investment will be capped at Tk 7.5 million a year, with 10 per cent of that amount rebated.

At present, taxpayers are allowed to invest up to 20 per cent of their taxable income or Tk 6.67 million, whichever is lower, to enjoy tax rebates of as much as 15 per cent of investments made in eligible instruments.

The proposed act, however, raises the investable portion to 30 per cent of taxable income while lowering the rebate rate to 10 per cent.

For instance, an investor with a taxable income of Tk 25 million will be able to invest a maximum of Tk 7.5 million in listed securities to avail of a rebate worth Tk 0.75 million. If the taxable income is Tk 5 million, the eligible investment will be Tk 1.5 million - 30 per cent of the income - yielding a rebate of Tk 0.15 million. In other words, only investors with a taxable income of Tk 25 million or above can claim the maximum rebate of Tk 0.75 million by investing Tk 7.5 million in listed companies.

Separate investment ceilings apply for other instruments. Eligible investments in government securities will be capped at Tk 0.5 million, as will investments in mutual funds, while the ceiling for deposit schemes will be Tk 0.12 million.

Under this structure, an investor who has already put Tk 0.5 million into government securities can show a further Tk 7.0 million in listed companies to claim the highest rebate of Tk 0.75 million against aggregate eligible investments of Tk 7.5 million.

However, the proposed act stipulates that investors will not be entitled to a tax rebate if they encash instruments before maturity. A senior official of LankaBangla Securities said this provision may make investors prefer listed companies as a vehicle for claiming tax rebates.

The finance minister's budget for FY27 proposed adopting a digitalised and time-bound initial public offering (IPO) process, but stopped short of offering any new tax incentives to encourage fresh listings - a long-standing demand of market participants.Personal finance e-book

The country's stock market has seen no new listings for the past two years.

Ahead of the budget, stakeholders had submitted a range of fiscal and policy proposals designed to encourage corporate listings, attract investors and deepen market liquidity.

The Bangladesh Merchant Bankers Association (BMBA), for instance, recommended reducing the corporate tax rate for listed companies to 18 per cent and introducing a 15 per cent tax rate for newly listed firms during their first five years in the secondary market. The proposed budget, however, left unchanged the existing five-percentage-point tax gap between listed and non-listed companies.

The budget falls short of addressing a key stakeholder demand by not offering any tax incentives for new listings, said Sumit Podder, secretary general of the BMBA.

He added, however, that tax benefits alone are not sufficient to attract quality companies to the market. "Fair valuation mechanisms and supportive policy incentives remain crucial for attracting good companies to the stock market," said Mr Podder, who also serves as CEO of MTB Capital.

"Many profitable firms continue to stay away from the market due to concerns over pricing restrictions," he said, adding that firms with paid-up capital above Tk 5 billion, annual turnover over Tk 10 billion, or bank borrowings exceeding Tk 5 billion should be classified as "deemed-to-be listed."

Finance Minister Amir Khosru Mahmud Chowdhury proposed a number of measures viewed as broadly positive for the capital market, including tax reliefs, market reforms and sector-specific incentives expected to support corporate profitability, improve cash flows and encourage investment.Regional business directory

One significant shift in tax administration proposed in the budget is the transformation of tax deducted at source (TDS) from a minimum tax settlement mechanism into an advance tax system.

The move is expected to provide substantial relief to brokerage houses and other businesses that have long faced liquidity constraints due to non-refundable deductions at source.

According to BRAC EPL Stock Brokerage, brokerage firms had been trapped in a liquidity crunch under the previous regime, as taxes deducted at source were treated as final settlements, reducing working capital and limiting operational flexibility. The policy change is expected to benefit stockbrokers, merchant banks, asset management companies (AMCs), the Central Depository Bangladesh Limited (CDBL) and stock exchanges. Market participants believe the impact could become more pronounced over the medium term if new listings increase and secondary market turnover improves.

The minister also outlined a roadmap for introducing T+0 settlement in phases, a move expected to boost market efficiency and liquidity. The budget further proposes allowing foreign investors to repatriate profits and transfer proceeds from shares purchased through non-resident investor taka accounts within one working day.

Mr Chowdhury also proposed static and predictable corporate tax rates for the next five years through 2031, providing businesses with greater policy certainty.Business strategy consulting

Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage, said the overall budget framework is supportive of the capital market.

"Banks, telecom operators, pharmaceutical companies, ICT firms, fuel distributors, power companies, electronics manufacturers and automobile producers are likely to emerge as the biggest beneficiaries of the proposed measures.

A major relief for businesses also came through reductions in withholding tax (WHT) and advance income tax (AIT) on various business inputs and essential commodities," said Mr Shawon.

The telecommunications sector received a boost as the budget proposed reducing withholding tax on mobile network services to 10 per cent from 12 per cent and withdrawing withholding tax on revenue sharing and licence fees paid to the telecom regulator. "The measures are expected to improve earnings prospects for listed operators," Mr Shawon added.

The information and communications technology (ICT) sector stands to gain from the government's push for high-speed internet expansion, 5G rollout and a Tk 5 billion startup fund, with broadband and technology-related companies expected to benefit from increased digital infrastructure spending.Personal finance e-book

Healthcare and pharmaceutical companies emerged as another major winner. The budget prioritised the active pharmaceutical ingredient (API) industry and medical device manufacturing while offering VAT and tax relief on selected healthcare products. Increased public spending on health is also expected to support sector growth.

Fuel distribution and power generation companies are expected to gain from reductions in withholding tax rates on fuel oil supply and electricity purchases, which will improve liquidity and operational cash flows.

The proposed budget further extended VAT exemptions until 2030 for local electronics and appliance manufacturers and maintained protective duties aimed at supporting domestic industries. Automobile and electric vehicle manufacturers also received support through the continuation of VAT benefits and a significant reduction in advance income tax on electric vehicles.

However, not all sectors fared equally well. The tobacco industry may face pressure as the government increased cigarette prices while maintaining high corporate tax rates and surcharges. The introduction of a Track and Trace system is also expected to strengthen tax compliance and curb illicit trade.

The steel sector could also come under pressure following an increase in specific VAT on mild steel products at the production stage, potentially raising costs for manufacturers.Market trend analysis

Textile and garment-related companies received mixed signals. While measures to simplify bond issuance are viewed positively, higher duties on certain synthetic fibre inputs may increase costs for some manufacturers.

The finance ministry has identified revenue shortfall as the biggest domestic risk to Bangladesh economy, warning that persistent revenue gaps could push government debt up by more than Tk12 lakh crore over the next three fiscal years to Tk33.78 lakh crore.

Although the debt is expected to remain within 39% of GDP due to an expanding economy, the ministry said the situation could still pose risks considering the tax-to-GDP ratio.

In its Medium-Term Macroeconomic Policy Statement, the ministry said if the current trend of revenue shortfalls continues, development spending could decline by around Tk96,000 crore by 2029. Private investment could also fall short by about Tk85,700 crore.

Published with the budget documents, the policy statement said the government plans to introduce short-term Islamic Treasury Bills next fiscal year alongside Sukuk bonds to lengthen debt maturity and reduce refinancing risks.

However, the report acknowledged that implementing the strategy would be challenging due to liquidity shortages in the financial sector. It also suggested attracting foreign investment into the domestic debt market to address the issue.

The government on Thursday announced a budget based on a revenue target of Tk6.95 lakh crore for the next fiscal year, a figure that has drawn scepticism among economists.

Centre for Policy Dialogue (CPD) distinguished fellow Debapriya Bhattacharya described the target as "unrealistic" in comments to The Business Standard.

CPD fellow Mustafizur Rahman said mobilising such a large volume of revenue within a single year would be extremely challenging.

He warned that if revenue collection falls short while public expenditure remains unchanged, pressure on both domestic and foreign borrowing would increase.

"In particular, higher external borrowing targets and repayment obligations could have adverse macroeconomic implications," added Mustafizur.

Finance Minister Amir Khosru Mahmud Chowdhury at a post-budget press briefing yesterday said that reforms would be introduced in the National Board of Revenue, including its restructuring, staffing with competent officials, and digitisation.

He added that corruption would be curbed and businesses, including shops and restaurants across the country, would be brought under the tax network to boost revenue collection.

Finance Secretary Khairuzzaman Mozumder said the government would gradually move away from bank borrowing, with a focus on increasing public investment, which is expected to generate higher revenue over time.

Govt borrowing could drag down growth to 6.45%

The Fiscal Risk Assessment Statement chapter of policy statement said that in the past five years, revenue has fallen short of targets by an average of 16%. The gap has been widening and if this trend continues, the budget deficit could rise to nearly 5% of GDP.

The most concerning issue is that the government may need to rely more on borrowing to cover the revenue shortfall, which could in turn squeeze credit flow to the private sector.

According to the Finance Division, this could reduce private investment by around Tk85,700 crore by 2029, dragging down economic growth to 6.45% instead of the projected 7.5%.

To mitigate these risks, the report recommends expanding the tax net, rationalising tax exemptions, digitising tax administration, and strengthening accountability.

It also flags global energy price volatility, high inflation, financial weaknesses in state-owned enterprises, and climate-related disasters as key risks for the economy through 2029.

The economy may be able to absorb these risks individually, the chapter said. However, a combination of shocks could place pressure on growth, budget deficit, and debt situation.

The government plans to maintain its policy of keeping the budget deficit within around 5% of GDP in an effort to avoid excessive borrowing and preserve macroeconomic stability.

However, depreciation of the taka against the US dollar and rising global interest rates could increase the real cost of external debt, said the assessment.

Debt scenario

According to official data, external debt principal repayments stood at $2.61 billion in FY25 and are projected to rise to $3.20 billion in FY26. The finance ministry forecasts that this will further increase to $4.28 billion by FY29.

The repayment burden is expected to rise sharply as grace periods on loans expire, maturities are reached, and the impact of currency depreciation accumulates.

At present, around 91% of Bangladesh's external debt is denominated in US dollars, Special Drawing Rights (SDR), and Japanese yen, with dollar- and SDR-based borrowing is 71%.

As a result, any depreciation of the taka against the dollar could significantly increase debt servicing costs. To address this risk, the finance ministry has indicated plans to explore hedging or exchange rate protection mechanisms in the future.

By 2029, 55.7% of total debt is projected to come from domestic sources, while 44.3% will be external. Although Bangladesh's public debt remains within IMF-recommended safe thresholds, the low tax-to-GDP ratio is increasingly straining repayment capacity, prompting concerns among economists over potential debt vulnerability.

Government projections show the net fiscal deficit reaching Tk3.20 lakh crore by FY29, while remaining within 3.5%-3.7% of GDP.

A significant portion of this financing will come from domestic sources. Net domestic financing stood at Tk1.35 lakh crore in FY25 and is expected to rise to Tk1.84 lakh crore by FY29, though it is projected to remain near 2% of GDP.

Meanwhile, net external financing is projected to increase from Tk55,600 crore to Tk1.36 lakh crore over the same period, while remaining broadly stable at around 1.6% of GDP.

Welcoming the proposed budget, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said it will help restore economic stability and boost investment and the private sector, as the government has prioritised improving the business environment and strengthening energy security.

In its reaction to the Tk 9.38 lakh crore budget, the FBCCI said the targets of 6.5 percent GDP growth and reducing inflation to 7.5 percent can be achieved if sustainable discipline is maintained in the economy.

However, it said achieving the revenue target of Tk 6.95 lakh crore, including Tk 6.04 lakh crore assigned to the National Board of Revenue (NBR), will be challenging due to current domestic and global economic conditions.

The apex trade body said reforms in the NBR are necessary to meet the revenue target while ensuring economic stability, better revenue management and a more investment-friendly environment that supports growth.

It also warned that heavy borrowing from the banking sector could reduce the flow of loans to the private sector, potentially affecting job creation.

The FBCCI added that the government should, as far as possible, rely on low-cost foreign funding to meet its expenditure needs.

It noted that the government will face challenges in raising funds to pay Tk 1.05 lakh crore in bank loan interest and Tk 22,500 crore in interest on foreign borrowing.

High inflation, a low tax-to-GDP ratio, a large volume of defaulted loans, pressure from external debt and an unstable geopolitical situation could also make budget implementation difficult.

To address these challenges, the FBCCI suggested prioritising the operationalisation of investment-friendly economic zones, diversifying exports and markets, developing human resources in the IT sector, reducing the cost of doing business, strengthening the capital market, and ensuring quality and accountability in implementing the Annual Development Programme.

The FBCCI said the government’s plan to sign trade agreements with major trading partners and introduce necessary customs rules is positive, as Bangladesh is set to graduate from the least developed countries (LDC) category to a developing nation in November this year.

It also welcomed the proposal for zero duty on imports for the renewable energy sector and the introduction of a Tk 60,000 crore stimulus package for the private sector.

The trade body said simplifying online VAT return submission, shifting to quarterly returns, enabling online income tax filing and payments, and introducing a national single window will help attract both domestic and foreign investment.

The FBCCI welcomed the proposal to set the corporate tax rate for five years, but said it would have been better if it could be reduced further to 2.5 percent.

It also appreciated treating source tax as advance income tax, but said the minimum tax should be reduced to 0.5 percent from 1 percent.

The trade body further welcomed the proposal to reduce source tax on imports of 60 essential commodities, including rice, wheat, potato, onion, garlic, salt, sugar and edible oil, from 5 percent to 4 percent.

Garment exporters have welcomed the proposed national budget for the fiscal year 2026-27, describing it as a balanced and reform-oriented roadmap aimed at strengthening macroeconomic stability, improving the business climate and supporting long-term economic transformation.

In its reaction to the proposed budgetary measures, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) praised the finance minister for pursuing policy continuity and maintaining economic discipline amid persistent global uncertainties and domestic challenges.

BGMEA, the main trade body representing the country’s largest export earning sector, said proposed budget reflects a shift from a purely growth-driven strategy toward a broader development agenda that places greater emphasis on education, healthcare and social protection.

It said the government sets economic growth target of 6.5 percent for the next year and has outlined 10 strategic priorities, including investment-led employment generation, promotion of a production-oriented economy, deregulation, financial sector stability and energy security.

These priorities are expected to play an important role in supporting industrial expansion, export growth and Bangladesh’s smooth transition from least developed country status, said the BGMEA.

The proposal to maintain tax policy consistency for at least five years and gradually reduce reliance on statutory regulatory orders through the introduction of a risk-based audit system is expected to strengthen investor confidence and encourage fresh investment, it added.

BGMEA appreciated several measures aimed at improving revenue administration and reducing compliance burdens.

These include the introduction of an automated and faceless tax refund system, treatment of withholding tax as advance tax rather than minimum tax, and simplified tax procedures. Such reforms are likely to improve transparency and ease cash-flow pressures for businesses.

It said mandatory online-based single-window services, issuance of licenses within seven days and company registration within 48 hours are expected to reduce bureaucratic hurdles and lower the cost of doing business.

The association also welcomed initiatives to facilitate profit repatriation and expedite work permits for foreign professionals.

The trade body further welcomed the reduction of tax on recycled products from three percent to one percent and the continuation of duty exemptions on effluent treatment plant chemicals, measures that are expected to encourage environmentally responsible manufacturing.

It also urged the government to withdraw the proposed 5 percent import duty on polyester staple fibre, along with additional duties on PVC resin and PET resin, citing the growing export potential of man-made fibre-based garments.

The first-ever international agreement on safeguarding digital platform workers in the gig economy was adopted on Friday at the UN’s International Labour Organization.

The Decent Work in the Platform Economy Convention is aimed at extending labour protections to hundreds of millions of people worldwide who work through digital platforms, in areas like food delivery and car services.The convention applies to “all digital labour platforms” and “all digital platform workers... whether they are in the formal or informal economy”, according to the text adopted by ILO members.

Until now, labour practices have struggled to keep pace with the dramatic shifts in the way people work.

The World Bank estimated in 2023 there were up to 435 million online gig workers around the globe who had largely fallen outside regular labour protections.

Companies behind the apps control the gig work via algorithms that assign tasks, set pay, evaluate performance and even fire workers.

Despite largely controlling the tasks and pay, the platforms typically classify the workers as independent contractors rather than employees.

This allows them in many cases to ignore things like minimum wage requirements, workplace safety and access to social security.

“The ILO now has the first convention that focuses on the impact of digitalisation in the world of work,” said the UN labour agency’s chief Gilbert Houngbo.

“This convention seeks to bring about tangible improvements in the lives of millions of workers around the world,” Brazil’s representative said at the adoption. In Brazil, “around two million workers will see their opportunities, dignity and autonomy strengthened by this convention”, she added.

Other countries, such as India, Bangladesh and the United States felt that the convention should be applied flexibly, depending on national contexts.

“We continue to urge extreme caution with respect to prescriptive binding regulations in fast-evolving areas of the economy,” said the US representative Lorenzo Riboni.

Independent contractors control their own work and “lean into an entrepreneurial spirit that makes America great”, he said.

The International Trade Union Confederation said the convention would help ensure that millions of platform workers can enjoy the rights, protections and dignity that all workers merit.

“This convention represents a major step forward,” the ITUC’s political director Jeroen Beirnaert told AFP.

He underlined, however, that the convention allows countries “to provide for certain limited exclusions from its scope”.

Therefore, “there is a risk that certain categories of workers will be excluded”, he said, but countries that choose to apply such exclusions would have to justify them.

The ITUC urged governments to ratify the convention quickly, saying the future of work had to be built on rights rather than precariousness.

The convention comes into force in member states 12 months after they ratify it, so long as two countries have ratified the text.

PAY AND SOCIAL SECURITY

Among other things, the convention calls on countries to ensure that gig workers are guaranteed fair pay and access to social security protections “on terms no less favourable than those applicable to other workers with the same classification of status in employment”.

Countries should also ensure that digital labour platforms provide workers with “timely, verifiable and easily understandable information on the terms and conditions of their employment or engagement”.

“Platform companies have built a business model that sidesteps labour protections and shifts risks and costs onto the workers,” said Human Rights Watch’s senior economic justice advisor Lena Simet.

The convention marks “a turning point for platform workers”, setting “the first global standard to protect their rights and hold digital labour platforms accountable”, she said.

The convention was adopted at the 114th annual International Labour Conference in Geneva.

The ILO is unique in the United Nations system in that its 187 member states are equally represented by governments, employers and workers.

The government may reconsider its proposal to make a taxpayer identification number (TIN) mandatory for opening bank accounts, following concerns that the move could create barriers for ordinary citizens and low-income workers and undermine financial inclusion.
FE

The measure, included in the FY27 budget, was aimed at widening the tax net.

Students, recipients of government allowances, and individuals or organisations exempted through official gazette notifications would remain outside the requirement.

Speaking to The Financial Express on Friday, National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan said the government might review the proposal requiring individuals to submit a TIN certificate to open a bank account.

Tax experts and bankers warn that making TIN mandatory could discourage middle-, lower-middle-, and low-income people from entering the formal banking system, potentially pushing more economic activities into the informal sector.

Snehasish Barua, a chartered accountant and a director of SMAC Advisory Ltd, says forcing people to obtain an electronic TIN (e-TIN) solely to open a bank account would be a risky policy move.

"Bangladesh's economy still relies heavily on cash transactions. Such a requirement could undermine years of efforts to bring ordinary citizens and small businesses into the formal banking system," he tells The Financial Express.

"Rather than boosting tax collection, it could drive entrepreneurs and small businesses into the untaxed shadow economy. Reduced bank usage could also lower deposits and strain financial sector liquidity," he adds.

In his budget speech on Thursday, Finance Minister Amir Khosru Mahmud Chowdhury proposed making TIN certificates mandatory for opening bank accounts, except for student accounts, no-frills accounts, and those exempted by gazette notifications.

The proposal has drawn criticism at a time when the government is promoting digital payments, financial inclusion, and a cashless economy.

Critics say additional compliance requirements could discourage unbanked and low-income individuals from entering the formal financial system.

Industry insiders note that many banks, particularly in Dhaka and other major cities, have long encouraged customers to obtain TIN and sometimes facilitated registrations on their behalf.

As a result, some individuals later found TIN had already been issued in their names when they attempted to register independently.

Bankers say these practices were often linked to loan-processing requirements, where proof of tax return submission is needed.Regional business directory

However, TIN has never been mandatory solely for opening a bank account.

Meanwhile, the NBR is pressing ahead with plans to integrate its database with banks and other institutions to strengthen tax compliance and information sharing.

The proposed budget envisages online connectivity between the NBR and the National Identity Card (NID) system, banks, utility service providers, sub-registrar offices, and other agencies.

"Through central data integration, the NBR's database will be connected with the NID system, banks, utility services, sub-registrar offices, and other institutions to facilitate the exchange of information," the finance minister said.

The hike in import duties on plastic resins in the proposed national budget for the fiscal year 2026-27 will create fresh challenges for Bangladesh’s plastic industry, raising production costs and affecting a wide range of downstream sectors, industry insiders say.

The government has proposed doubling the import duty on two key plastic raw materials -- PVC (polyvinyl chloride) and PET (polyethylene terephthalate) resins -- from 5 percent to 10 percent.

Stakeholders warn that the move will significantly increase production costs in the plastic, beverage, electrical, electronics, packaging, construction and automobile sectors, with the burden ultimately being passed on to consumers.

PVC resin, one of the most important raw materials used in Bangladesh’s plastic industry, is widely used in the production of pipes, fittings, water tanks, household products, flooring materials, electrical wire and cable insulation, synthetic leather, and shoe soles.

PET resin, meanwhile, is extensively used to manufacture beverage and food bottles, containers, packaging materials and various industrial products.

Considering their widespread use, the impact of the duty hike on these two materials will extend beyond the plastic industry, affecting the construction, packaging, electricity, healthcare, electronics and automobile industries.

Bangladesh’s annual demand for PVC resin is around 5 lakh tonnes, while demand for PET resin stands at approximately 3.5 lakh tonnes, bringing total annual demand to about 8.5 lakh tonnes.

In contrast, local production capacity stands at only about 1.5 lakh tonnes for PVC resin and 1 lakh tonnes for PET resin.

Consequently, around 70 percent of the country’s resin demand is met through imports, making the industry highly dependent on foreign supplies.

Given this reliance, higher import duties will directly raise production costs.

The plastic industry is currently growing at an annual rate of 8-10 percent, driven by low production costs, competitive labour costs, easy access to raw materials and rising domestic demand.

More than 5,000 plastic manufacturing enterprises operate in Bangladesh, around 98 percent of which are small and medium-sized enterprises (SMEs). Several large companies, including Pran-RFL Group, Bengal Plastics, Akij Plastics, National Polymer, Anwar Group and ACI Limited, play leading roles in the sector.

If the duty on imported resins is increased from 5 percent to 10 percent, import costs will rise significantly, increasing the production costs of pipes, fittings, water tanks, beverage bottles, packaging materials, electrical cable insulation, synthetic leather, footwear and various everyday products. This is likely to lead to higher market prices and additional pressure on consumers.

The industry is already facing challenges due to rising global resin prices caused by geopolitical uncertainties and conflicts in the Middle East. In such circumstances, the proposed increase in duties on key raw materials could place further strain on manufacturers.

Bangladesh’s plastic industry not only serves domestic demand but is also strengthening its position in international markets.

Plastic products from the country are currently exported to around 70 countries, and export earnings from the sector have been increasing steadily. However, the industry remains heavily dependent on imported raw materials.

Industry insiders argue that increasing import duties before achieving self-sufficiency in domestic resin production could weaken the competitiveness of local manufacturers. They also note that locally produced resin currently costs around Tk 10 more per kilogramme than imported resin, suggesting that policymakers should focus on addressing the factors behind the higher domestic prices.

Until Bangladesh achieves competitive pricing and greater self-sufficiency in resin production, industry stakeholders believe, the government should reconsider its decision to increase import duties on PVC and PET resins.

From the next fiscal year, a 15 percent capital gains tax may apply when selling gold, jewellery, digital currencies, or club memberships.

Finance Minister Amir Khosru Mahmud Chowdhury proposed the measure in the Finance Bill 2026 while presenting the national budget for the fiscal year 2026-27 in parliament on Thursday.

Under the proposal, profits from selling or transferring gold, silver, jewellery, precious stones, diamonds, coins, digital currencies, artworks, antiques, and club memberships declared in a taxpayer’s return will be treated as capital gains and taxed at 15 percent.

Capital gains from securities will also be taxed at 15 percent, including treasury bills, bonds, savings instruments, debentures, sukuk and other shariah-based securities, as well as shares or stocks issued by companies and other entities.

The government has proposed the tax on gold and jewellery at a time when prices have risen sharply in recent years.

Gold was priced at Tk 1.72 lakh per bhori on June 5, 2025. It then rose steadily to Tk 2.24 lakh per bhori on June 13, 2026. Earlier, on January 29 this year, it had reached Tk 2.86 lakh per bhori, the highest level in Bangladesh’s history.

After falling four times in a row, gold prices in the domestic market rose again yesterday, driven by higher international prices of pure gold, prompting the Bangladesh Jewellers Association to adjust local rates.

Yesterday, the price of 22-carat gold increased by Tk 6,590 per bhori, bringing it to Tk 224,940 per bhori.

Industry insiders fear the new tax may discourage formal transactions, encourage asset concealment, and create difficulties for people needing to sell gold during financial emergencies.

INDUSTRY OPPOSITION

Enamul Haque Khan, president of the Bangladesh Jewellers’ Association, has called the proposed capital gains tax on gold “illogical and unacceptable” for the industry.

“We are already preparing a response and will announce a protest programme seeking its withdrawal,” he said.

He argued that gold should not be treated like a regular financial asset for taxation, saying, “Gold is usually kept as gold, not converted into cash. Globally, it is measured by weight, not value.”

Khan warned that traders may become reluctant to sell gold if the tax is imposed.

Comparing the proposal with VAT, he said that while VAT compliance has improved over time, adding or replacing taxes with a capital gains tax would not bring major benefits and would instead make the tax system more complicated.

He also said the measure could discourage formal transactions, reduce transparency, and create unintended effects in the gold market.

Using a train analogy, he said the sector must work as a single system, adding, “All parts need to function together. If policies are applied partially, the system will not run smoothly.”

INCENTIVES FOR THE JEWELLERY SECTOR

Despite the proposed tax, the jewellery sector has also received budget incentives expected to support business growth.

The finance minister has proposed replacing the existing 5 percent VAT with a fixed VAT of Tk 2,500 per bhori of gold.

The government has also proposed reducing the tax deducted at source on purchases of gold, silver, jewellery, precious stones, diamonds and platinum from 5 percent to 0.5 percent.

Under this proposal, any individual or business buying these items will have to deduct 0.5 percent tax at source from the seller at the time of purchase.

However, Khan said these incentives would have little impact if the government proceeds with the 15 percent capital gains tax.

NBR DEFENDS PROPOSAL

Officials of the National Board of Revenue have rejected the industry’s criticism, with a senior official saying, “We have included the provision in line with global standards.”

On club memberships, the official said the rule would apply to registered clubs mainly used by higher-income groups.

The finance minister has also proposed a 10 percent tax deducted at source on fees for joining, renewing, transferring or changing club memberships.

In Bangladesh, we have a special talent for feeding the stable owner, polishing the saddle, praising the horse and then wondering why the rider is still walking barefoot.

The latest telecom policy and the new budget deserve appreciation. The government has clearly shown that it wants to support the telecom and digital industry and accelerate digitalisation. This is no longer just rhetoric. Some real actions have followed.

The recent telecom policy offered meaningful benefits to operators and licence holders. Mobile operators received a clearer licensing structure, more room for infrastructure sharing and a more predictable investment environment. ISPs received a pathway towards a simplified regime under new classifications. Tower, fibre, international connectivity, satellite, data centre and other infrastructure players were also given space to grow within a more structured digital ecosystem.

The promise to consumers was mainly better quality of service. That matters. But a farmer cannot buy mobile data with a promise. A rickshaw puller cannot call home at night with a policy paragraph.

Then came the budget, probably the most telecom and digital-friendly budget in Bangladesh’s history. The withdrawal of the Tk 300 SIM tax, the removal of withholding tax on BTRC revenue sharing and licence fees, the reduction of withholding tax on mobile network services, support for local handset manufacturing, relief for ICT equipment, and VAT exemptions for startups, freelancers and content creators are all welcome moves. They show that telecom and digital services are finally being seen as national infrastructure, not luxury toys.

But one uncomfortable question remains: in both the policy and the budget, where is the consumer?

Most of the benefits go to operators, licence holders, manufacturers, startups or formal digital businesses. The ordinary mobile user, who pays the bill every day, gets no direct relief. On mobile usage, consumers still pay around 39 percent in VAT, supplementary duty and surcharge. In plain language, when a poor person buys talk time or mobile data, the state takes a large bite before that person can talk, learn, sell, search or survive digitally.

Compare this with India, where telecom services face 18 percent GST. Pakistan’s telecom service tax is also lower than Bangladesh’s effective burden. Bangladesh wants digital inclusion, but taxes the digital user like a small walking treasury.

The same consumer-unfriendly thinking appears in floor pricing for voice calls and SMS. Minimum prices are maintained to protect operators’ interests. But at whose cost? The poor farmer, daily labourer, domestic worker, student and small shopkeeper are not sitting in consultation meetings wearing ties and speaking with polished accents. There is no powerful mobile users’ association knocking on the ministry’s doors. There is no digital rights forum for daily labourers with consultants and glossy presentations.

So, policymakers hear the people who can reach them. Operators have associations, experts, data, international references and smart teams making their case. That is not wrong. They have every right to do so. But when only the powerful are heard, policy becomes unintentionally tilted. That is how the rich get relief, and the poor get lectures on digital transformation.

The benefits given to the industry are necessary. Without a healthy industry, Digital Bangladesh cannot move forward. But reducing the 39 percent consumer burden to around 15 percent would be far deeper, fairer and more visible. Millions would feel the difference immediately.

Digital growth needs supply-side incentives for operators, but digital inclusion needs demand-side relief for consumers. If consumers remain heavily taxed, network investment alone will not deliver the desired benefits.

The next reform must be simple: keep supporting the industry, but create a real consumer voice in policymaking. Telecom and digital policy should not be written only for those who hold licences. It must also be written for those who hold a Tk 100 recharge card and pray it lasts a few more days.

The writer is the founder of BuildCon Consultancies Ltd and BuildNation Ltd