The finance minister said in his budget speech that the government wants to make the capital market vibrant. But a number of proposed tax changes could push institutional and retail investors away from shares and into safer investments such as government securities.

Under the proposed budget for fiscal year 2026-27, corporate investors would lose the preferential 20 percent tax rate on dividend income from shares and instead pay tax at their regular corporate rates.

For banks, that could mean paying 37.5 percent tax on dividend income instead of 20 percent.

The second proposed change affects individual investors. Retail investors currently receive a 15 percent tax rebate on stock market investments, but the budget proposes reducing that to 10 percent.

The maximum investment eligible for the rebate would also be lowered to Tk 7.5 lakh from the current Tk 10 lakh.

Moreover, income or discounts earned from zero-coupon bonds, a type of debt instrument purchased at a discount and redeemed at full value at maturity, are currently exempt from income tax for all investors. The FY27 budget proposes scrapping that exemption.

According to market analysts and asset managers, these proposed tax measures could send the wrong signal to investors at a time when the government is trying to revive the capital market.

“Both of the proposed tax measures for corporates and retail investors are negative for the capital market,” said Ali Imam, managing director and chief executive officer of Edge Asset Management.

However, he said the proposed tax on corporate dividend income would have a greater impact because institutional investors are already limited in the market. The additional tax would further discourage them from investing.

CORPORATE TAX CHANGES ON DIVIDEND INCOME

At present, corporate investors pay a 20 percent tax on dividend income earned from stock market investments. If the provision is abolished, they will instead pay tax according to their respective corporate tax rates.

For example, if Bank A invests in a listed company, Company B, and receives Tk 100 in cash dividends, the bank currently pays Tk 20 in tax on that dividend income, even if its corporate tax rate is 37.5 percent.

If the provision is removed, the bank would have to pay tax at 37.5 percent on the same dividend income.

Banks currently make up the bulk of institutional investors in the stock market and are therefore likely to be the hardest hit by the measure.

Moreover, with treasury bond yields remaining attractive, banks and other institutions may choose risk-free government securities over stock market investments.

Edge Asset Management CEO Ali Imam said dividend income represented a distribution of profits paid from earnings that had already been taxed.

“Therefore, imposing an additional tax on dividend income is illogical in itself, as the underlying profits have already been taxed. Increasing the tax rate further amplifies the negative impact, effectively creating a double burden on investment returns,” he added.

Iftekhar Alam, president of Bangladesh Merchant Bankers Association (BMBA), said investors could shift their funds if returns on other securities are higher.

However, he said the country lacks sufficient investment vehicles.

Alam said there has been positive sentiment in the market since the new commission took office recently and expressed hope that investors would remain in the stock market.

Saiful Islam, president of the DSE Brokers Association (DBA), urged the authorities to retain the tax benefits currently available to stock market investors for at least another couple of years, as the market is undergoing a transformation and rebuilding.

BUDGET OTHERWISE WINS MARKET APPRECIATION

In his budget speech, Finance Minister Amir Khosru Mahmud Chowdhury said the government would work to reduce the private sector’s excessive dependence on bank financing and make the IPO process time-bound and digital.

According to a budget analysis by Sheltech Brokerage Ltd, these steps would strengthen the role of the capital market within the financial system, resulting in greater market depth and improved liquidity.

It says the digital IPO process would reduce approval times, lower compliance costs, increase the attractiveness of listing and potentially expand the IPO pipeline.

The budget also outlines plans to modernise market infrastructure by gradually shifting from the existing T+2 settlement cycle to T+0 settlements. Non-Resident Investors’ Taka Accounts (NITA) accounts would also be simplified.

Sheltech Brokerage said these measures could facilitate foreign investment inflows and improve liquidity, although they might also increase market volatility.

Meanwhile, the Dhaka Stock Exchange (DSE) welcomed the national budget, saying the measures would help develop the country’s capital market and create a more investment-friendly environment.

In a statement issued on budget day, DSE Chairman Mominul Islam expressed gratitude to the government for prioritising the restoration of investor confidence, strengthening market governance and addressing long-standing concerns of market stakeholders, saying these steps reflected a strong commitment to the sustainable development of the capital market.

He said the proposed measures to improve coordination among regulatory agencies and institutions linked to the capital market would enhance efficiency, transparency and accountability, helping build a stronger and more integrated market infrastructure.

The government aims to raise the creative economy’s contribution to the country’s gross domestic product (GDP) to 1.5 percent, viewing the largely untapped sector as a potential source of growth, jobs and export earnings, according to Finance Minister Amir Khosru Mahmud Chowdhury.

Speaking at an economic diplomacy conference in Dhaka yesterday, he said Bangladesh should invest more in culture, arts, entertainment and design to diversify its economy.

Drawing a comparison with the United Kingdom’s thriving creative industries, the minister said creative products and services generate significant economic value and serve as an important source of soft power.

According to UNCTAD estimates, the global creative economy accounts for about 3 percent of world GDP, or around $2.25 trillion. In India, the sector contributes around 1.5 percent of GDP.

“Bangladesh possesses strong creative talent but has yet to adequately protect, promote and commercialise it,” said Khosru at the conference, titled “Roadmap for Trade, Growth and Economic Diplomacy”, jointly organised by the foreign ministry and the Bangladesh Investment Development Authority (Bida) at Pan Pacific Sonargaon Dhaka.

In his proposed budget for fiscal year 2026-27, the finance minister outlined the 1.5 percent target, alongside a 10-year investment strategy and time-bound action plans aimed at creating 5 lakh new jobs in the creative economy.

Currently, there is little data available on how many activities such as performing arts, design, stand-up comedy and other creative pursuits contribute to the economy.

The finance minister said there are plans to establish a dedicated “theatre district” on 150 acres of land. Such a hub would create new opportunities for spending and economic activity while strengthening the country’s cultural influence.

He highlighted the budget’s focus on developing the creative economy by supporting artisans, designers, performers and cottage industry entrepreneurs through financing, skills development, branding support and access to digital marketplaces.

“We have to protect it, promote it and monetise it,” he said.

He also spoke about streamlining business approvals and deregulation. Khosru said deregulation is central to the government’s efforts to create a more business-friendly environment.

Responding to concerns from foreign investors about higher taxes on compliant businesses, Khosru said the government’s priority is to expand the tax net rather than increase the burden on existing taxpayers.

He added that reforms, including separating tax policy formulation from tax administration, are aimed at improving efficiency and making tax collection more predictable.

He called for a rethink of Bangladesh’s public finance architecture, citing rising borrowing costs and growing interest payments.

Khosru urged greater reliance on the capital market for large investments and said state-owned enterprises should raise funds independently.

He also pledged financial sector reforms and faster regulatory simplification to improve the business environment.

Foreign Minister Khalilur Rahman said Bangladesh must redesign its international economic engagement to cope with slowing global trade and growth, geopolitical tensions, climate risks, rising protectionism and supply chain disruptions.

He cautioned that weaker demand in major export markets, high borrowing costs, climate vulnerability and the global energy crisis pose significant challenges.

Developing countries, he noted, face much higher financing costs and remain vulnerable to volatility in global financial markets.

Rahman said the government’s strategy focuses on stabilisation, reforms and economic transformation, while assuring investors and development partners that Bangladesh remains open for business.

Bida Executive Chairman Ashik Chowdhury said Bangladesh’s biggest achievement over the past year was restoring democratic accountability through a free and fair election, which had strengthened policy stability and investor confidence.

He outlined reforms to support an investment-led growth strategy aimed at creating more than 1 crore jobs, including reducing factory permit approval times to 14 days, expanding digital services and streamlining regulatory procedures.

Acknowledging energy and logistics constraints, he said Bangladesh would accelerate solar power projects, diversify energy sources and fast-track LNG infrastructure development.

He also announced plans to privatise or develop partnerships for around 20 underperforming state-owned enterprises.

“The biggest challenge is execution,” he said.

LGRD and Cooperatives Minister Mirza Fakhrul Islam Alamgir said the government is committed to building a self-reliant and resilient industrial economy in which every citizen could share in prosperity and dignity.

He described the proposed budget as a roadmap towards that goal and said small and informal businesses would be promoted as important drivers of growth.

NBR Chairman Md Abdur Rahman Khan said Bangladesh must raise domestic revenue to support economic transformation, but cautioned against tax policies that could undermine business growth and employment.

He said reforms are focused on lowering compliance costs, simplifying procedures and helping businesses expand. Exporters would receive broader bonded warehouse facilities, while automation is being expanded across tax administration.

More than 45 lakh taxpayers filed returns online last year, while more than 12 lakh users obtained licences and permits through the National Single Window platform, he said.

Among others, Shama Obaed Islam, state minister for foreign affairs; Humayun Kabir, foreign affairs adviser to the prime minister; Mahadi Amin, adviser to the prime minister; Jahrat Adib Chowdhury, member of parliament; Asad Alam Siam, foreign secretary; and M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, spoke in separate sessions.

Senior government leaders, diplomats, development partners and private sector representatives attended the event.

Eminent economists have described the proposed national budget for fiscal year (FY) 2026-27 as 'highly ambitious', warning that financing constraints and weak implementation capacity could pose significant challenges for the newly formed government.

They cautioned that failure to mobilise adequate revenue and foreign financing could force excessive reliance on the banking sector, potentially squeezing private-sector credit and slowing job creation.

The economists stressed the need for deep institutional reforms and a stronger focus on value for money, rather than routine budget implementation.

Eminent economist Dr Mustafa K. Mujeri said the budget appears designed to "please everyone", reflecting the finance minister's earlier statement that it would cater to all sections of society.

However, he noted that this approach is typical in the early budgets of a new government.

"It can be said that attention has been given to everyone in terms of allocation," he said, adding that health, education, development, entrepreneurship, start-up capital and other areas have all been addressed.

However, he emphasised that the key issue lies in implementation.

"We can achieve the desired results only if the budget is implemented properly, keeping in mind the context in which it was formulated and the allocations were made," he said.

Dr Mujeri identified two major obstacles to implementation of the large budget -- financing and the efficient use of funds.

"The revenue target set by the finance minister is impossible," he said.

He recommended structural reforms to improve revenue collection and reduce dependence on bank borrowing to avoid crowding out private sector credit.

At the same time, he warned against excessive withdrawal of funds from the banking system, saying it could create liquidity pressures and restrict private investment.

Dr Selim Raihan, Professor at the Department of Economics, University of Dhaka, said the budget is ambitious in tone but cautious in macroeconomic design.Economics

He said it correctly identifies the economy's main challenges, including weak growth, high inflation, low revenue mobilisation, fragility in the banking sector, rising debt-servicing costs and external shocks.

He noted that the budget places emphasis on private investment, employment, social protection, education, health, energy security, deregulation and regional development, which is broadly appropriate.

Proposals on investment incentives, support for SMEs and startups, and improvements in logistics and export infrastructure indicate an intention to move beyond a narrow growth model.

However, he said the budget is stronger in diagnosis than in operational clarity.

Dr Raihan said the budget simultaneously promises stability and expansion -- lower inflation, higher investment, increased social spending, stronger revenue collection, bank recapitalisation and tax concessions -- without clearly explaining sequencing or trade-offs.

"The main challenge will be implementation," he said.
He noted that long-standing weaknesses in tax administration, public expenditure quality, procurement, project readiness, banking governance and local-level service delivery cannot be addressed through budget announcements alone.

He warned that revenue targets would be difficult to achieve without a transparent tax expenditure framework and strict performance conditions for exemptions and incentives.

Similarly, public spending in education, health and social protection would only deliver meaningful results if leakages are reduced and outcomes properly monitored.

Dr Raihan said the way forward should be disciplined and practical, with measurable reform milestones, regular progress reporting, protection of priority spending, time-bound and conditional investment incentives, stronger banking-sector governance before further recapitalisation, and safeguards against crowding out private credit.

"In short, this budget can become a useful first step, but only if it is followed by serious institutional reform rather than routine implementation," he added.

Dr M Masrur Reaz, Chairman and Founder of Policy Exchange Bangladesh, described the FY2026-27 budget as an ambitious attempt to build a welfare-oriented state and investment-led growth model, but warned that success depends on overcoming persistent weaknesses in revenue mobilisation, project implementation and governance.

In an instant reaction to The Financial Express, he said the budget outlines a broad reform agenda centred on social protection, investment promotion, deregulation and foreign direct investment, while seeking to shift the economy away from debt-driven growth.

Professor Muhammad Mahboob Ali of Bangladesh University of Business and Technology (BUBT) said the budget provides a strategic framework aimed at stabilising the economy and realigning priorities.

He said the Tk 9.38 trillion budget represents a major test for the new government, requiring a shift away from overly ambitious growth targets towards stabilisation, financial sector reform and easing inflationary pressures.

He noted that revised FY26 estimates place total revenue between Tk 5.93 trillion and Tk 7.01 trillion, while FY27 projections indicate an 18 per cent rise in income, including grants.

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.

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.

Landowners will soon have to pay a 15% capital gains tax on the value of apartments or any other financial benefits received from developers beyond the initial signing money, according to changes proposed in the new Finance Bill.

The proposed measure, included in the income tax provisions of the bill presented by Finance Minister Amir Khosru Mahmud Chowdhury, seeks to broaden the capital gains tax base by treating apartments and other non-cash benefits received from developers as taxable gains.

Under the existing system, the signing money received by landowners when entering into a development agreement is subject to a 15% capital gains tax. However, apartments allocated to landowners as part of the development arrangement are currently exempt from such taxation.

The new proposal would change that. Apartments received in place of land will be valued at the current official government valuation for the specific area, known as the mouza value. The acquisition cost of the land will then be deducted, and the remaining amount will be treated as capital gains subject to a 15% tax.

How it would work

Speaking to TBS, a senior official from the National Board of Revenue explained that if a landowner, who purchased a 10-katha plot for Tk50 lakh two decades ago and later handed it over to a developer, could face a substantial tax liability.

In the example cited by the official, the landowner receives Tk50 lakh as signing money and is allocated 10 apartments out of a 20-unit project. If each apartment carries a mouza value of Tk50 lakh, the total value of the apartments would amount to Tk5 crore.

Including the signing money, the landowner's total proceeds would reach Tk5.5 crore. After deducting the original acquisition cost of Tk50 lakh, the taxable gains would stand at Tk5 crore, resulting in a capital gains tax liability of Tk75 lakh.

Tax liabilities would vary depending on location, land valuation and acquisition history. In cases where land was inherited or acquired many years ago at relatively low values, the taxable gain could be significantly higher because the acquisition cost would be comparatively small.

Government-assessed mouza values for both land and apartments are periodically updated by the relevant valuation committee.

Sector insiders estimate that more than 10,000 flats are sold annually in Bangladesh, with the market value exceeding Tk10,000 crore.

Industry raises concerns

Developers and tax specialists have expressed concerns that the proposed measure could encourage under-reporting of property values and increase tax evasion.

MA Awal, former vice-president of the Real Estate and Housing Association of Bangladesh, told TBS, "If such a tax is imposed, there will be a greater tendency to conceal the actual value of transactions. For that reason, it would be more reasonable not to increase taxation in this area."

Snehasish Barua, tax expert and managing partner of Snehasish Mahmud and Company, said taxpayers already tend to understate actual property values.

"If additional taxes are imposed on landowners, the tendency to conceal values may increase further because higher declared income would result in higher tax liabilities," he said.

Industry participants warned that if compliance is effectively enforced and opportunities for concealment are limited, the additional tax burden could ultimately be reflected in higher apartment prices, affecting buyers rather than sellers.

'Substantial revenue generation likely'

NBR officials said the measures could generate substantial revenue. Syed Md Aminul Karim, a former member of the NBR, said, "Even when based on official government valuation, this measure is highly likely to generate substantial revenue."

He thinks transitioning to actual market valuation would yield far greater returns. "Regardless, this remains a commendable step towards boosting state revenue."

Karim further noted that the policy would not place an additional financial burden on ordinary or low-income citizens, as the tax is effectively levied indirectly on substantial wealth and assets.

Remittances sent by Bangladeshi expatriates have continue to surged in the wake of Eid-ul-Azha, with the crucial economic indicator crossing $34 billion with 20 days left in the current fiscal year.

Bangladesh Bank officials estimate that it will exceed $36 billion by the end of the 2025-26 fiscal year on Jun 30.

Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan gave an update on the remittance situation on Friday, stating that expatriates from different countries across the world sent in $1.20 billion in the first 10 days of June, the last month of the outgoing fiscal year.

This figure is about a 26 percent year-on-year jump from the same period last year.

In total, expatriates sent approximately $34 billion in the 11 months and 10 days of the outgoing fiscal year (Jul 1, 2025 to Jun 10, 2025). This is 19.31 percent higher than in the same period in the previous fiscal year and a 12 percent increase from total remittances throughout the entire fiscal year (Jul 1, 2024 to Jun 30, 2025).

If remittances keep pace for the remaining 20 days of June, the total for the month could exceed $3.6 billion, the second highest in a single month. Accordingly, at the end of the fiscal year (Jul 1, 2025 to Jun 30, 2026), the amount will exceed $36 billion.

In the first 10 days of June last year, $956.2 million in remittances came in. The total for the month was $2.82 billion.

Previously, the highest incoming remittances in a single month was in March, with $3.75 billion. Last May saw an inflow of $3.42 billion.

Currently, remittances have crossed the $3 billion threshold for six consecutive months. If that level is passed in June, it will be seven.

Bangladesh celebrated Eid-ul-Azha on May 28. Bangladesh Bank spokesman Arief said that more remittances came in during the month of May as expatriates sent their families additional funds to meet their needs ahead of and during the festival.Regional business directory

The $3.75 billion that came in last March was due to the Eid-ul-Fitr holiday, he said.

Arief told bdnews24.com, “We have seen in the past that remittance flow usually decreases quite a bit after Eid. But this time, even after two Eid holidays, the positive trend in expatriate income transfers has continued.”

“So, all in all, we have calculated that remittances will exceed $36 billion by the end of this fiscal year.”

The Bangladesh Bank official noted there had been fears remittance flows would decrease due to the Iran war. But so far, there has been no impact, he said.

Banks are currently paying Tk 123 per dollar on remittances. Accordingly, expatriates sent Tk 147.98 billion to the country in the first 10 days of June. The daily average was $120.3 million per day, which is Tk 14.78 billion.

Of the economy’s major indicators, remittances are performing the best, helping to keep the gears of the economy turning in the face of adversity.

More than $3 billion in remittances came to Bangladesh each month from December to May.

The number was $3.17 billion in April, $3.22 billion in December, $3.17 billion in January, and #3.02 billion in February.Newspapers

In July, the first month of the outgoing fiscal year, remittance inflow was $2.48 billion. The second month – August – saw $2.42 billion.

September, October and November recorded inflows of $2.68 billion, $2.56 billion and $2.89 billion respectively.

Even in the face of the Iran war and global economic headwinds, remittances have propped up the Bangladesh government’s foreign currency reserves, a significant relief following an extended dollar crunch under the Awami League regime.

On Thursday, the last day of the week, Bangladesh had $30.07 billion in reserves, according to the BPM-6 measure. The gross amount was $34.73 billion.

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

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).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.