Bangladesh’s revenue collection has grown more slowly than the economy over the past decade, indicating substantial untapped revenue potential, according to a recent analysis by the Finance Division.

The analysis showed that the country’s average revenue buoyancy -- a measure of how quickly government revenue grows relative to the economy -- stood at 0.93 between fiscal years 2014-15 and 2024-25.

A revenue buoyancy coefficient above 1 indicates that tax collection is outpacing economic growth, reflecting a highly efficient revenue system. Conversely, a coefficient below 1 suggests revenue growth is trailing economic expansion, often because of structural inefficiencies or a narrow tax base.

In its latest Medium-term Macroeconomic Policy Statement (MTMPS) for FY2026-27 to FY2028-29, published last week, the Finance Division said revenue buoyancy had been highly volatile, peaking at 2.10 in FY21 before plunging to 0.15 in FY22. The coefficient fell again to 0.60 in FY25.

“On average it stood at 0.93, indicating revenue growth has structurally lagged behind nominal GDP expansion,” the MTMPS said.

Nominal GDP grew by an average of 11.71 percent annually between FY21 and FY25. Over the same period, actual tax revenue expanded by an average of 11.4 percent
According to the Bangladesh Bureau of Statistics, nominal GDP grew by an average of 11.71 percent annually between FY21 and FY25. Over the same period, actual tax revenue expanded by an average of 11.4 percent, the Finance Division said.

“This persistent trend indicates that revenue collection is not keeping pace with economic growth, revealing the existence of substantial untapped revenue potential,” the Finance Division said.

The division suggested a strategic shift towards digital integration and administrative reforms to align revenue mobilisation more closely with the nation’s trajectory towards a trillion-dollar economy.

The MTMPS also compared Bangladesh’s performance with neighbouring and peer countries in South and Southeast Asia, highlighting the country’s relatively weak revenue mobilisation.

While comparable emerging economies have expanded fiscal buffers alongside economic growth, Bangladesh continues to operate with a narrow revenue base and low collection efficiency, the report said.

The gap became more pronounced in 2025. Bhutan recorded a revenue-to-GDP ratio of 27.8 percent, followed by India at 21 percent, Myanmar at 20.3 percent, Nepal at 20 percent and Vietnam at 19.9 percent.

Bangladesh’s ratio stood at just 7.9 percent that year.

“This persistently low taxation level indicates that structural reform in taxation policy and administration is required so that taxes can be more efficiently collected from potential revenue sources.”

The MTMPS said a large traditional agricultural sector and an extensive informal economy outside the formal tax net continue to pose major challenges to effective tax administration.

“Also, the absence of tax administration-wide digitalisation and low tax morale make it very difficult for the tax administration to perform effectively.”

The report noted that revenue-to-GDP ratios in Pakistan, Cambodia and Sri Lanka also exceed Bangladesh’s, underscoring the scope for greater revenue mobilisation and the need to tap underutilised fiscal resources.

The MTMPS highlighted “a significant and persistent gap” between the number of Taxpayer Identification Number (TIN) holders and actual income tax return filings.

Although the number of registered TIN holders rose to 1.2 crore in FY25, compliance remained weak. Only 46 lakh returns were filed, meaning nearly 62 percent of TIN holders failed to submit returns, resulting in a record compliance gap of 74 lakh taxpayers.

However, a positive shift is emerging in FY26, as mandatory online filing has driven a 24.3 percent increase in submissions as of March. The trend suggests that while systemic inertia persists, digital enforcement is becoming a key driver of improved compliance and a more disciplined tax culture.

The National Board of Revenue currently generates 88 percent of total tax revenue. Indirect taxes -- including VAT, supplementary duty, customs duty and other levies -- account for 65.6 percent of the NBR’s collections.

Direct taxes, led primarily by income tax, contribute the remaining 34.4 percent, underscoring the tax system’s continued reliance on consumption-based indirect taxation.

The National Board of Revenue (NBR) is counting on business expansion, a broader tax net, digitalisation and a harder crackdown on evasion to meet its proposed Tk 6.04 lakh crore revenue collection target for FY2026-27.

Speaking at an event on the proposed Finance Bill yesterday, NBR Chairman Abdur Rahman Khan said businesses are passing through a tough time due to lingering impacts of wars and the pandemic.

“The government wants to raise tax collection and create more jobs by stimulating the economy, so NBR tried to address the problems of entrepreneurs,” he said at the programme organised by the Economic Reporters’ Forum in Dhaka.

The proposed target for NBR is about 20 percent higher than the current year’s original target of Tk 5.03 lakh crore, which was later revised to Tk 5.54 lakh crore.

The higher goal for FY27 arrives as the board is faced with a huge shortfall in the current year. Provisional NBR data shows the board collected Tk 3.27 lakh crore through April and needs another Tk 2.27 lakh crore by June 30 to meet its FY26 goal. NBR has failed to meet its goal for 14 consecutive years.

“We have taken many bold steps and we did not consider whether the step will reduce tax collection, but we thought whether it is justified,” the NBR chief said in response to a question regarding how the board will meet its target next year, especially considering the government has proposed tax exemptions for several sectors.

He said if businesses grow as expected, tax collection will rise across all fronts.

The board will simultaneously intensify its drive against leakages to ensure lower evasion, not just higher rates, drives collection growth, he added.

He cited the tobacco sector, the NBR’s single largest revenue source, as a concrete example.

The board plans to introduce “QR and AR codes” on every cigarette packet, allowing consumers to scan and verify whether tax has been paid.

The measure could yield an additional Tk 7,000 crore from the sector alone, he said, with the system to be gradually extended to other products.

On digitalisation, the NBR has simplified and moved the VAT submission process online and digitised corporate tax filing.

“So we will track everybody easily — whether anyone is evading tax,” the chairman said.

He added that by benchmarking against compliant taxpayers within each sector, the system will more readily flag those who are not.

For small and marginal VAT payers, the NBR is introducing a flat-rate VAT calibrated by area and business type, removing the need to maintain detailed accounts – a measure aimed at pulling informal traders into the net without burdening them with compliance costs.

Snehasish Barua, a partner at Snehasish Mahmud & Co, Chartered Accountants, welcomed the business-friendly measures in the budget but urged full implementation and further reductions in individual and corporate tax rates.

The proposed FY27 budget projects a total revenue collection of Tk 6.95 lakh crore, including the NBR’s target. Historically, revenue mobilisation has been one of the country’s weakest policy areas and Bangladesh’s tax-GDP ratio remains among the lowest in Asia.

The event was also addressed by ERF President Doulot Akter Mala, NBR first secretaries Jafar Imam and Md Tarek Hasan, among others.

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.

The benchmark index of the Dhaka Stock Exchange (DSE) surpassed the 5,600-point threshold in the post-budget session on Sunday for the first time in nearly 10 months, as investors reacted positively to a series of budgetary measures.

Finance Minister Amir Khosru Mahmud Chowdhury proposed a range of policy measures aimed at reviving private-sector growth and promoting long-term capital market development, which gave a confidence boost to investors.

The market index tracked a firm upward trajectory from the outset of the session. As the session progressed, investor participation intensified, with buying interest remaining strong.

Eventually, the benchmark index of the DSE surged 105 points, or 1.90 per cent, to settle at 5,625, reflecting renewed investor confidence amid expectations of improved corporate profitability, enhanced market liquidity and stronger institutional participation.

Market analysts said the rally was driven by a combination of fiscal incentives, tax relief measures and regulatory reform initiatives aimed at deepening the capital market and attracting long-term investment.

Among the key proposals welcomed by investors are the conversion of tax deducted at source (TDS) into an advance tax mechanism, reductions in withholding taxes on several business inputs, simplification of listing procedures and measures to strengthen market governance.

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

The budget also proposed allowing foreign investors to repatriate profits and transfer proceeds from shares purchased through non-resident investor taka accounts within one working day, a move to improve market participation by foreign investors and help deepen the market.

Akramul Alam, head of research at Royal Capital, said the overall budget framework is supportive of the capital market, although effective implementation and continued policy support are key for sustainable development of the capital market.

He added that expectations surrounding the newly formed securities commission's reform agenda also helped strengthen market sentiment, as investors anticipate greater transparency, fair pricing and stronger governance.

The market also received a boost from improving global sentiment following the announcement of a ceasefire in the Middle East. As global uncertainties seemed to wane, investors continued accumulation of beaten-down stocks.

In another development, Bangladesh Bank provided Tk 25 billion in special liquidity support to Islami Bank Bangladesh on Sunday to help the country's largest Shariah-based lender overcome an acute cash shortage.

Following the news, Islami Bank's stock jumped 9.97 per cent to Tk 32 per share on Sunday, after a sharp decline since the removal of the floor price. Islami Bank alone added 18.3 points to the prime index during the session.

The FY27 budget also proposed strengthening the capital market as an alternative financing source through simplification of listing procedures, development of alternative investment instruments, and gradual shortening of the trade settlement cycle.

According to EBL Securities, the market momentum remained upbeat, supported by expectations that budgetary measures would improve business confidence, stimulate investment and enhance corporate profitability.

Market stakeholders, including the Dhaka bourse, welcomed the proposed budget, saying the measures would help develop the country's capital market and create a more investment-friendly environment.

In a statement, DSE Chairman Mominul Islam said the proposed tax reliefs, market reforms and sector-specific incentives are expected to support corporate profitability, improve cash flows and encourage investment.

"These developments have generated renewed optimism among investors and market participants," he said, adding that the government's proactive approach towards capital market reforms has created fresh expectations for a more stable, transparent and vibrant market.

All but three blue-chip stocks posted gains on Sunday. The DS30 index, comprising blue-chip companies, jumped 47 points to 2,120, while the DSES index, which tracks Shariah-based stocks, rose 14 points to 1,129.

Market participation on the premier bourse remained robust, with total turnover standing at Tk 13.58 billion, a 10 per cent increase over the previous session, as buying interest spread across banking, financial, engineering and pharmaceutical stocks.

Gainers strongly outnumbered losers. Of the 392 issues traded on the DSE, 246 advanced, 96 declined and 50 remained unchanged.

Major sectors posted gains. Non-bank financial institutions led the gains with a 4.4 per cent rise, followed by banking, power, food, pharma, engineering and telecom.

The Chittagong Stock Exchange (CSE) also ended higher. Its All Share Price Index (CASPI) rose 147 points to 15,343, while the Selective Categories Index (CSCX) jumped 91 points to 9,411.

The government has decided to establish Export Processing Zones (EPZs) in Barishal and Lalmonirhat to attract foreign investment, increase exports, and create employment opportunities.
FE

The Cabinet Division has already sent letters to the Secretary of the Prime Minister’s Office and other relevant authorities to begin implementing the EPZ projects.

During the DC Conference held in May, several DCs highlighted the need for new EPZs and economic zones.

The concerned DCs have been instructed to submit progress reports on the implementation of these plans to the Cabinet Division.

These directives were outlined in a letter sent by the Cabinet Division to the Prime Minister’s Office and relevant authorities.

Officials from the Cabinet Division told state-owned BSS that, out of approximately 1,729 proposals received from various districts, feasible proposals were selected and presented to the Prime Minister and relevant stakeholders after several rounds of meetings with ministries and implementing agencies.

The Prime Minister’s Office has decided to implement six key decisions in three phases: short-term (within one year), medium-term (within three years), and long-term (within five years).

Among these decisions are the establishment of EPZs in Barishal and Lalmonirhat and economic zones in Gazipur, Barguna, and Pirojpur.

Bangladesh currently has eight government-owned EPZs under the Bangladesh Export Processing Zones Authority (BEPZA): Dhaka, Chattogram, Mongla, Cumilla, Ishwardi, Karnaphuli, Adamjee, and Uttara EPZs. Bangladesh economic report

The primary purpose of EPZs is to facilitate the duty-free import of raw materials and the direct export of manufactured goods.

Mohammad Khorshed Alam Khan, a Joint Secretary of the Cabinet Division, told BSS that numerous proposals are submitted each year during the DC Conference, and the government adopts short, medium-, and long-term plans based on priority.

He said that work has already begun on implementing several important decisions this year and that letters have been sent to the relevant ministries.

In the presence of the Prime Minister, ministers, secretaries, and implementing authorities, the Gazipur DC proposed establishing an economic zone to relocate industries to a designated area.

The proposal argued that planned industrialisation would reduce waste and environmental pollution, protect agricultural land, increase domestic and foreign investment, and provide entrepreneurs with easier access to industrial sites.

The Barishal DC proposed establishing an EPZ in Barishal, arguing that it would create employment opportunities locally, reduce migration to Dhaka and Chattogram for work, lower poverty, improve living standards, and benefit from direct road connectivity with Dhaka and proximity to Payra Port.

The Barguna DC proposed an economic zone in the coastal district, noting that its location near Payra Port could make it a strategic centre for international trade.

The proposal also highlighted the potential for marine resource processing and preservation, along with integrated development of the fisheries, agriculture, industry, and tourism sectors.

The Pirojpur DC proposed establishing an economic zone in Pirojpur Sadar Upazila, citing the district’s strong road links with Dhaka, Khulna, and Barishal, as well as waterway connections to Chattogram, Mongla, and Payra seaports.

These links would facilitate the transportation of raw materials and finished products.

The proposal further argued that easy access to raw materials and labour would attract domestic and foreign investment, create jobs through agriculture-and fisheries-based industries, and enable exports after meeting domestic demand.

The Lalmonirhat DC proposed an EPZ, arguing that it would generate industrial and employment opportunities, reduce poverty, improve living standards, and support agro-based industries due to the abundance of rice, potatoes, maize, and other crops.

The presence of Burimari Land Port and Bangladesh Railway facilities would also simplify imports and exports.

Md. Mamun, Deputy Secretary of the Field Administration Wing of the Cabinet Division, told BSS that BG Press is preparing a publication containing the development initiatives discussed during the DC Conference. Copies will be distributed to relevant stakeholders.

He added that all ministry secretaries have been informed of their responsibilities and instructed to submit monthly implementation progress reports to the Cabinet Division by the 10th of each month.

Meanwhile, Prime Minister Tarique Rahman discussed the government’s plans to restore economic discipline and attract foreign investment during a parliamentary session.

Responding to a written question from Cumilla-10 lawmaker, Md Mobashwer Alam Bhuiyan, the Prime Minister, said there is no alternative to restoring economic discipline if the country is to achieve sustainable development.

As part of this effort, the government has taken several groundbreaking measures through the Ministry of Commerce and other relevant agencies to simplify investment procedures and attract both domestic and foreign investors.

He said that the country’s Export Policy has already been updated and that work is underway to revise the Import Policy Order 2026–2029 to facilitate easier market access for foreign investors.
Highlighting a major structural reform initiative aimed at reducing institutional complexities and improving service delivery, the Prime Minister said the government has taken steps to integrate the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Public-Private Partnership Authority (PPPA), and Bangladesh Hi-Tech Park Authority into a unified framework to enhance efficiency and reduce bureaucratic delays.

The Bangladesh Association of Banks (BAB) has welcomed the government’s effort to recapitalise banks by spending over Tk 40,000 crore in the current fiscal year, but said the move needs to be matched by swift legal recovery of misappropriated assets for lasting effects.

Finance Minister Amir Khosru Mahmud Chowdhury disclosed the figure in his budget speech on Thursday, saying the government had committed the funds to restore the financial health of weak banks.

In a statement on the proposed budget, the BAB, which represents bank sponsors, demanded decisive enforcement against wilful defaulters and transparent treatment of shareholdings acquired through irregular means.

“Depositors’ confidence rests on accountability. Further, there should have been a dedicated budgetary allocation for establishing an Asset Management Company (AMC) to clean up the balance sheets of weak banks, reduce their non-performing loan burden and ease capital shortfall challenges across the sector,” said BAB Chairman Abdul Hai Sarker.

The association of private commercial banks stressed the need to match ambition with discipline and accountability.

“This is a budget of ambition and direction -- one that rightly understands a simple truth: there can be no strong economy without strong banks, and no strong banks without trust,” the association said.

It also welcomed risk-based supervision, the removal of undue influence, the development of bond markets, and the move towards a digital, cashless economy.

The proposed bank resolution framework should include clear safeguards to ensure that parties whose conduct contributed to the distress of financial institutions cannot re-enter the system, it added.

The association stressed that government borrowing from the private banking system should remain disciplined so that it does not crowd out private-sector credit, on which investment, exports and employment depend.

“Private credit must be protected,” the BAB chairman said.

The association called for fiscal policy to reinforce capital rebuilding and prevent its erosion, and said dividend taxation should not discourage institutional investment in the capital market.

The trade body further demanded that provisioning shortfalls should, over time, be treated outside taxable income and that the transition to a cashless, digitally inclusive economy must receive adequate fiscal support.

US and Iranian officials said they had agreed on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Iran's nuclear program to further negotiations.

"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform around 5:30 p.m. ET local time in Washington (2130 GMT) on Sunday. His post came shortly after Pakistani Prime Minister Shehbaz Sharif, whose country has served as a mediator, announced a deal had been struck early on Monday local time.

The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.

The precise terms were not immediately known. Sharif said in a post on X that the pact called for "the immediate and permanent termination of military operations on all fronts, including in Lebanon."

Lebanon has been a sticking point in negotiations, with Israel and Hezbollah ignoring calls from Trump and others to stop their attacks on each other in recent weeks.

In a statement, the secretariat of Iran's Supreme National Security Council said war and military operations on all fronts, including Lebanon, would end permanently starting on Monday night.

Iran's deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period, including sanctions relief for Iran.

The fate of Iran's nuclear program, another thorny issue, will also be addressed in those later talks, sources previously told Reuters.

There was no immediate reaction to the announcement from Israel, which has said it was not party to the US-Iran talks.

STRAIT TO REOPEN
Trump said the Strait of Hormuz, a major shipping route for global oil and gas supplies that Iran has effectively shut down for months, would open on Friday, and that he had ordered the end of the US blockade of Iranian ports.

"Ships of the World, start your engines. Let the oil flow!" Trump wrote.

Oil prices fell on the news. Brent crude futures fell 4% in early trading on Monday, while ​US ⁠West Texas Intermediate slid more than 4.6%. Stock markets in Asia jumped.

Former Biden administration State Department spokesperson Matthew Miller said Trump had made important concessions to Iran to achieve the status quo that existed before he launched the war.

"We have no assurances the nuclear program will ever be addressed, but Iran has shown the world it can take the global economy hostage and get something from the US in return," said Miller.

Thousands of people have been killed, mostly in Iran and Lebanon, since US and Israeli forces first attacked Iran on February 28. Iran has struck Israel and Gulf states hosting US bases and has effectively blockaded the Strait of Hormuz, pushing up global energy prices. US forces have blocked Iranian ports in response.

The Iran war has become a political liability at home for Trump and his fellow Republicans in Congress, with public opinion polls showing Americans deeply frustrated by rising gas prices ahead of November's midterm elections. But Trump has also faced pressure from members of his own party who insist that Iran's nuclear program must be completely shut down.

Republican Senator Lindsey Graham, a leading Iran hawk, praised the deal but said he would be "watching closely" the coming negotiations on Iran's nuclear program.

"Under our law, any nuclear deal with Iran will be sent to Congress for review and a vote," he said. "Congratulations to all in getting us to this point."

During his first term, Trump withdrew the US from a 2015 multilateral Iran deal, negotiated by Democratic President Barack Obama, that lifted sanctions on Tehran in exchange for limits on its nuclear program, including international inspections.

Iran responded by ramping up its enrichment of uranium, producing ​more than 400 kg (around 900 pounds) of material at close to bomb-grade purity. The eventual fate of that uranium is likely to be a key negotiating point during the upcoming talks.

'A VERY DIFFICULT GUY'
The agreement was sealed despite an Israeli strike on Lebanon on Sunday that drew criticism from both Iran and Trump.

Prime Minister Benjamin Netanyahu has differed with Trump over American demands that Israel curb its military action in Lebanon to allow the United States to reach a deal with Iran.

Israel has said it will retain freedom of operations in Lebanon, while Iran has made a full ceasefire there an important component of its demands.

Trump updated Netanyahu on the progress toward a peace deal during a phone call on Sunday, Israel's N12 reported, citing a senior official.

In an interview with the New York Times, Trump called Netanyahu "a very difficult guy" and argued the Israeli leader should thank him for saving Israel from a nuclear-armed Iran.

Leaders outside the Middle East, who have kept a wary eye on the conflict, welcomed the announcement.

In a joint statement, the United Kingdom, Germany, France and Italy said they were prepared to lift sanctions on Iran in response to "clear, verifiable steps" to limit its nuclear program.

"We are clear that ​toll-free freedom of navigation must now be restored in the Strait of Hormuz," British Prime Minister Keir Starmer said. "Iran must never have a nuclear weapon."

Before the deal was announced, a senior Iranian official told Reuters that, under the terms of the draft, the United States would agree to release $25 billion of frozen Iranian assets. The Trump administration has previously said any release of Iranian money would only take place once Iran has fulfilled certain conditions under a peace deal.

A US official, also speaking before the announcement, said the agreement would ultimately lead to the dismantling of Iran's nuclear program, with its stockpile of highly enriched uranium to be destroyed and removed. The senior Iranian official said the draft deal would allow Iran, which denies seeking a nuclear bomb, to dilute its enriched uranium inside the country.

The Chittagong Stock Exchange PLC (CSE) today (Sunday) welcomed the proposed national budget for fiscal year 2026-27, describing it as a timely and bold initiative aimed at economic recovery and building an inclusive economy.Global economy podcast

Speaking at a post-budget press conference held at its headquarters, CSE Chairman AKM Habibur Rahman said the historic inclusion of capital market strategies in the national budget reflected the government's growing recognition of the sector's role in economic development, BSS reports.

He praised the government's emphasis on modernizing market infrastructure and enhancing digital capacity, particularly the initiative to operationalize the country's first commodity exchange.

He said the CSE has already completed the necessary technological and regulatory preparations for launching the commodity exchange and stands ready to support the initiative.

It also welcomed measures aimed at diversifying financial products, including the introduction of Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs) and index hedging instruments.

According to the CSE chairman, the exchange's Next Generation Trading System is fully prepared to accommodate these products, while the proposed transition of the settlement cycle from T+2 to T+0 would significantly improve market liquidity.

While expressing overall support for the proposed Tk 9.38 trillion budget presented by Finance Minister Amir Khosru Mahmud Chowdhury, the CSE put forward several recommendations to further accelerate capital market development.Market trend analysis

Among its key proposals, the exchange sought a five-year tax holiday for the commodity exchange segment, citing the substantial investment required to establish and operate a world-class commodities market.

The CSE also recommended increasing the tax rate gap between listed and non-listed companies from the proposed 7.5 percent to 10 percent to encourage more quality companies to enter the capital market.

To boost new listings, it proposed tax-free income facilities for newly listed companies during their first three years after listing.

In support of the government's digitalization agenda, the exchange suggested reducing withholding tax on technical services provided by non-residents from 20 percent to 10 percent and lowering VAT on software maintenance services from 15 percent to 5 percent.

The CSE further urged the government to retain the existing 20 percent tax rate on dividend income earned by institutional investors, arguing that removing the cap could negatively affect market growth.

Expressing concern over the withdrawal of tax exemptions for zero-coupon bonds, the exchange also called for a policy target to expand the corporate bond market to at least 2 percent of the country's GDP.Personal finance e-book

CSE Managing Director M Saifur Rahman Mazumdar said the proposed budget acknowledged the need to reduce excessive dependence on the banking sector and promote a balanced financial system where the capital market can play a greater role in financing long-term investments and infrastructure projects.

He reaffirmed the exchange's commitment to working closely with the government and regulators to develop a transparent, modern and internationally competitive capital market in Bangladesh.

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.

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

The proposed budget introduces a sweeping set of changes to how taxes are collected, filed, and enforced -- which chartered accountants say are largely business-friendly but will only work if officials on the ground do not use them to harass taxpayers.

They made the comments at an event where the Institute of Chartered Accountants of Bangladesh (ICAB) laid out its assessment of the proposed budget for fiscal year 2026-27 at CA Bhaban in Dhaka yesterday.

The government has proposed a national budget of Tk 9,38,000 crore, equivalent to 13.7 percent of GDP, with a revenue collection target of Tk 6,95,000 crore, ICAB President NKA Mobin stated.

Mobin said the proposed budget reflects the government’s commitment to maintaining macroeconomic stability, enhancing revenue mobilisation, generating employment, expanding investment, and fostering private-sector growth.

“ICAB believes that raising the tax-to-GDP ratio while ensuring greater transparency and accountability in tax administration is essential for sustaining long-term economic growth,” he said.

Other ICAB members described that to hit the budget target, the government needs more people and businesses paying taxes, and it needs them to pay correctly. The budget takes two routes to get there. The first is making compliance easier and cheaper for businesses that already pay taxes. The second is pulling more people and sectors into the tax net for the first time.

EASIER FOR BUSINESSES

Speaking at the event, CA Sarker Nahidul Islam, director of Tax and Advisory Services at Rahman Rahman Huq, said several income tax changes reduce the burden on businesses.

The minimum tax — a levy businesses had to pay even when making losses -- has been removed. Rules around what companies can claim as expenses have been relaxed, including on staff benefits and marketing costs.

The budget also relaxes limits on perquisites and promotional expenses, allows interest expenses without strict conditions, and removes the penalty for withholding tax failures. Startups pay zero turnover tax in their early years.

Significant changes have also been made to VAT – the tax added at each stage of production and sale.

Businesses can now claim VAT credit on labour and transport costs, which they previously could not, Islam said.

The process for filing VAT returns has been simplified, and a mechanism called the reverse charge – which required importers to self-assess and pay VAT on certain transactions – has been removed, cutting a layer of paperwork, he said.

VAT audits, which could previously drag on indefinitely, must now be completed within one year, he added.

Meanwhile, mandatory filing requirements have been tightened, tax audits will be more frequent, and penalties for late filing have been increased. Businesses must now submit proof that they have withheld and deposited tax on payments to suppliers and employees – a requirement that previously existed but was not strictly enforced.

“These changes are expected to reduce the cost of doing business and improve cash flow,” Islam said.

DISPUTING A TAX DEMAND JUST GOT CHEAPER

Nahidul also noted that appeals against tax decisions have been made simpler, payment requirements in certain cases have been reduced, and there has been an overall shift toward faster and more structured VAT compliance.

Under the current system, a business disputing an income tax assessment must deposit 10 percent of the disputed amount just to file a first appeal, 10 percent to go to the Tax Appeal Tribunal, and 25 percent to approach the High Court -- money that is locked up for the duration of the legal process regardless of whether the business ultimately wins.

In the proposed budget, the government has sought to cut these rates to 1 percent at the first appeal stage, 3 percent at the Tax Appeal Tribunal, and 10 percent at the High Court.

WIDENING THE TAX NET

At the same time, the budget is widening the tax net. Islam noted that VAT registration is now mandatory for mobile financial services providers, as well as businesses that provide electricity connections and vehicle registration services.

Retailers, who have largely operated outside the VAT system, are being brought in at a reduced rate of 0.2 percent. Warehouses have also been brought under VAT for the first time.

“These measures are expected to broaden VAT collection without significantly increasing tax rates,” Islam said.

However, he cautioned that some regulatory burdens remain, including no reduction in dividend tax rates, reduced rebates for individuals, and stricter record-keeping requirements of up to 12 years for companies. Increased scrutiny on expatriate employment and certain transactions may also raise compliance costs for businesses.

IMPLEMENTATION IS THE REAL TEST

CA Snehasish Barua, partner at Snehasish Mahmud and Co, said the government’s primary objective with the budget is to control inflation, and that duty reductions at the import stage were introduced with that goal in mind.

“These measures aim to provide relief to consumers, particularly as electricity and utility costs continue to rise,” he said.

But he said the main concern among practitioners is what happens at the field level. “The NBR must take practical steps to address this issue. Otherwise, revenue collection pressure will continue to fall on existing taxpayers rather than through an expansion of the tax base and the inclusion of new taxpayers in the system,” Snehasish said.

ICAB members also described the Document Verification System (DVS) -- a joint initiative between NBR and ICAB that allows tax authorities to verify the authenticity of financial documents submitted by taxpayers -- as a significant tool that has already helped curb evasion and should be expanded further.

ICAB members also noted that achieving the revenue collection target of Tk 6,95,000 crore will require comprehensive reforms and coordinated implementation efforts.

The budget projects a fiscal deficit of Tk 2,43,000 crore, of which Tk 1,12,000 crore is to be financed through domestic borrowing from the banking sector.

The institute cautioned that such reliance on bank financing could constrain credit availability for the private sector and potentially discourage private investment at a time when the government is simultaneously trying to encourage it.

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 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.

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.