Bangladesh’s low tax-to-GDP ratio highlights the need for greater revenue to fund infrastructure, social welfare and development. However, revenue measures must not undermine investment, employment or voluntary compliance.

The mandatory turnover tax on non-corporate businesses and professionals has therefore become a major concern among taxpayers. Under Section 163(6) of the Income Tax Act, 2023, as amended by the Finance Act, 2026, taxpayers must pay the prescribed turnover tax when their normal income-tax liability is lower.
The tax applies to gross receipts, even when losses are incurred. The general rate is 1 percent, with sector-specific variations and a 0.2 percent rate for newly established industrial undertakings during their first three years.The issue is not whether businesses should pay tax. The real question is whether gross sales or gross receipts (essentially, turnover) are an appropriate basis for determining tax liability, particularly for small and low-margin enterprises. Income tax is normally levied on net profit, the amount that remains after legitimate business expenses have been deducted.

A turnover tax, by contrast, is imposed on total sales, effectively treating sales volume as though it were income. However, a business may generate a high turnover while earning only a small profit. In such cases, taxing turnover rather than profit can impose a disproportionate burden, especially on businesses with thin profit margins.

Consider a small rice trader who starts with capital of only Tk 500,000 and repeatedly reinvests the same money throughout the year. Suppose the trader buys rice at Tk 75 per kilogram and sells it at Tk 80. With annual sales of Tk 12 million, the trader sells 150,000 kilograms and earns a gross profit of Tk 750,000. From this amount, the trader needs to pay Tk 150,000 for transportation, Tk 60,000 in rent, Tk 96,000 in salaries, Tk 12,000 for electricity and Tk 24,000 in other operating expenses. Total operating expenses come to Tk 342,000, leaving a net profit of Tk 408,000.

At a turnover-tax rate of 1 percent, the trader must pay Tk 120,000 in tax. But if tax were calculated on actual income, and Tk 408,000 were the trader’s only taxable income, the liability after the tax-free threshold would be around Tk 5,000 as minimum tax. The turnover tax would therefore be approximately 24 times higher. More strikingly, the Tk 120,000 tax would absorb almost 30 percent of the trader’s net profit. If the business made a loss in the following year, turnover tax could still be payable because the system does not consider profitability.

The turnover tax raises concerns under the ability-to-pay principle, which requires taxation to reflect a taxpayer’s real economic capacity. Gross sales are not the same as income. A trader may record crores of taka in sales yet retain only a small margin after paying suppliers, interest, transport, rent, wages, utilities and other expenses. This burden is especially severe for SMEs operating with limited capital and bank financing.

Rising borrowing costs, raw-material prices, transport expenses, electricity charges, digital banking fees and merchant discount rates have further reduced profitability, making turnover-based taxation increasingly disproportionate.

When small businesses are required to pay tax equal to 1 percent of gross sales, their working capital can decline rapidly. Working capital is the lifeblood of a small business; when it shrinks, the business may struggle to replenish inventory, pay employees, settle suppliers’ bills and service bank loans. This can lead to delayed payments, reduced employment, increased borrowing or even business closure. The consequences extend beyond the taxpayer, affecting employees, suppliers, lenders and consumers.

Turnover tax may be administratively simple where accounting records are weak, but simplicity should not undermine fairness. A disproportionate system can discourage formalisation, promote cash transactions and push businesses into the informal economy, ultimately reducing revenue. In countries such as the United Kingdom, Canada, Australia, Singapore and Japan, business income is generally taxed on net profit.

Simplified regimes in developing economies often consider business size, sector, profit margins and compliance capacity. Their purpose is to ease compliance, not penalise enterprises. Bangladesh should therefore adopt the following balanced measures that protect revenue while supporting sustainable SME growth:

First, the turnover tax rate for qualifying small and medium-sized businesses and professionals could be reduced from 1 percent to 0.2 percent.

Second, a tiered structure could be introduced, with tax rates varying according to annual turnover, business size and sectoral profit margins. A small grocery shop should not bear the same effective tax burden as a large, high-margin enterprise.

Third, businesses that consistently use formal banking channels and maintain basic digital records could receive targeted tax incentives.

Fourth, genuinely loss-making businesses below a defined threshold should be eligible for temporary relief. Appropriate documentation requirements and safeguards could be introduced to prevent abuse.

Fifth, the government should develop a phased roadmap for moving from turnover-based taxation towards profit-based taxation. This transition could be supported by expanding access to simple digital bookkeeping tools and affordable tax advisory services.

Finally, major tax policy changes should be preceded by structured consultations with business associations, professional bodies, tax experts and research institutions. Tax policy is more effective when those affected understand it, consider it reasonable and have the practical ability to comply.

Small and medium-sized enterprises are vital to employment, entrepreneurship and social stability in Bangladesh. Their tax contribution should be assessed not only in terms of immediate revenue but also by its impact on investment, jobs, business survival, access to finance and the future tax base.

Economic growth and revenue growth are mutually reinforcing. Reconsidering the 1 percent turnover tax therefore supports better, not lower, taxation. A tiered rate, relief for genuine losses and gradual movement toward profit-based assessment could protect revenue while allowing small businesses to grow, formalise and contribute more sustainably.

Bangladesh Bank has abolished the Telegraphic Transfer (TT) discounting facility for scheduled banks, under which banks were allowed to obtain short-term liquidity by placing liens on their current accounts maintained with the central bank.

The Banking Regulation and Policy Department issued a circular in this regard today (3 August).

TT discounting is a special facility that enabled commercial banks to borrow short-term funds from the central bank during urgent liquidity needs by placing a lien on their current accounts or without providing additional securities.

According to the circular, banks now have access to a range of effective sources for day-to-day liquidity management, including the call money market, repo, the Standing Lending Facility (SLF) and interbank borrowing.

"Therefore, there is no longer any need to continue the TT discounting facility against liens on current accounts," the central bank said.

The circular also noted that the facility had seen very limited use in recent years.

Against this backdrop, Bangladesh Bank said the TT discounting facility for scheduled banks would be deemed withdrawn with effect from 1 July.

The directive was issued under Section 45 of the Bank Company Act, 1991, and all managing directors and chief executive officers of scheduled banks have been instructed to implement the decision.

A chronic energy shortage, coupled with rising costs, a shortage of finance and global economic headwinds, has forced many factories to shut down in recent years, taking the steam out of the country’s economic engine.

Factories across key industrial belts are operating well below capacity because of the gas shortage, while many newly built plants remain idle with no clear timeline for starting production.

As machinery sits unused, businessmen continue to repay mounting bank loans. Besides, thousands of jobs that these factories were expected to create have never appeared.

Workers affected by factory closures move from one mill to another in search of work, while shuttered businesses are adding to the country’s growing burden of non-performing loans (NPLs).

At the centre of this cycle is the prolonged energy crisis, which continues to feed wider economic problems even as the government tries to revive growth through investment.

Although the government is seeking fresh investment, especially from overseas, local manufacturers say they are not receiving fair treatment when it comes to energy supply.

“Bangladesh seeks foreign investment, but those of us who have already invested are treated like beggars,” said Mostafa Kamal, chairman of Meghna Group of Industries (MGI), one of the country’s largest industrial conglomerates.

Industries have faced gas shortages for years, but business leaders say the situation deteriorated after the US-Israel war on Iran triggered fresh shocks in global energy markets.

The crisis worsened further after an accident at a floating liquefied natural gas terminal in Cox’s Bazar cut the country’s pipeline gas supply by more than 17 percent.

GROWTH SLOWS AS NEW INDUSTRIES SIT IDLE

The prolonged energy crisis, combined with the disruption that followed the political changeover in August 2024, has left clear marks on the industrial sector.

Industrial growth slowed to 2.86 percent in fiscal year 2025-26 from 3.71 percent a year earlier, according to provisional estimates by the Bangladesh Bureau of Statistics (BBS).

Fazlee Shamim Ehsan, president of the Bangladesh Employers Federation, said their dying units managed to operate at about 78 percent of capacity before the latest round of gas crisis. Now many are running at roughly half of their normal capacity.

“Still, we are in a much better situation in comparison with other factories. Factories in Kanchpur to Narsingdi industrial belt are facing the worst,” he said.

Amid these constraints, business leaders describe the energy crisis as the “biggest obstacle” to achieving Bangladesh’s target of $100 billion in exports by 2030.

As of mid-July, more than 1,850 applications for industrial gas connections were awaiting approval after the government instructed Petrobangla to suspend all new gas connections.

The decision has dealt another blow to large industrial groups and garment manufacturers that have spent years seeking gas connections for completed factories.

MGI, for example, has invested Tk 7,320 crore in glass and steel rod factories at the Comilla Economic Zone. Construction finished between one-and-a-half and two-and-a-half years ago.

The factories were financed largely through domestic and foreign loans, but they cannot begin production without gas. As a result, the group is paying about Tk 45 crore a month in interest.

MGI Chairman Mostafa said, “In the Comilla Economic Zone, seven factories in total were supposed to create jobs for 15,000 people. But now everything is stalled due to the lack of gas.”

“If we had been told from the beginning that gas would not be available, we would not have made such massive investments,” he commented. “The government now seeks foreign investment, but if investors face this situation, given Bangladesh’s poor rating, the risk will only worsen.”

City Group faces a similar problem. It has invested about Tk 14,000 crore in six factories, including sugar, salt and cement plants, at Hoshendi Economic Zone at Gajaria of Munshiganj.

City Group even spent about Tk 110 crore to build its own gas pipeline, yet it has still not received a gas connection. The factories have been ready since 2022 but cannot begin operations because of the lack of gas.

The company is paying nearly Tk 5 crore a day in bank interest.

According to a City Group official, who requested anonymity, the six factories would directly employ around 10,000 people if they were operational.

DWINDLING SUPPLY FUELS RISING NPLS

An entrepreneur in Narsingdi, who requested anonymity, said he invested Tk 600 crore in a spinning mill after being promised a gas connection by 2024. Following the fall of the Awami League government that year, the connection never came.

He said he has had to seek additional bank loans while continuing to pay interest on expensive machinery that remains idle inside the factory.

The entrepreneur has also been hit by the depreciation of the taka, which has lost about 40 percent of its value against the US dollar over the past three years. He opened letters of credit (LCs) when the exchange rate stood at Tk 85 to the dollar. By the time payments were due, it had climbed to more than Tk 123, leaving him with heavy losses and a shortage of working capital.

Many big businesses with political links also ran into trouble after the Awami League government fell in August 2024.

Large groups including S Alam Group, Beximco Group and Nassa Group defaulted on their loans after their businesses shut down and production stopped as owners fled, became fugitives or were arrested.

Other major industrial groups faced difficulties because of delayed gas connections, exchange rate volatility and supply chain disruptions linked to the global economy.

As these companies failed to repay their loans, bad debt in the banking sector rose sharply. At the end of 2024, NPLs stood at Tk 345,765 crore, up from Tk 211,392 crore six months earlier.

By the end of March this year, total NPLs climbed to Tk 588,704 crore, equal to 32.26 percent of the Tk 1,824,668 crore in outstanding loans, according to the Bangladesh Bank.

To ease the pressure, the central bank under the interim government introduced more flexible loan restructuring and rescheduling facilities for businesses affected by factors beyond their control.

After taking office, the BNP-led government made economic growth and employment its priorities. As part of that effort, it sought to reopen closed factories and industries, while the central bank introduced a series of support measures, including a Tk 60,000 crore stimulus package.

Anis A Khan, former chairman of the Association of Bankers Bangladesh (ABB), told The Daily Star that many industrial groups had fallen into distress because of circumstances beyond their control rather than poor business decisions.

“Take City Group, for example. If it had received a gas connection for its economic zone on time, it would have been able to repay its bank loans on schedule.”

Anis, also the former managing director of Mutual Trust Bank, said the company would not have ended up in its current situation. “To keep the economy on track, these businesses need to be supported.”

Bangladesh and South Korea are set to formally sign a Comprehensive Economic Partnership Agreement (Cepa) today (4 August), having recently wrapped up negotiations on the bilateral trade deal.

Commerce Ministry Public Relations Officer Md Kamal Hossain confirmed the development to The Business Standard yesterday (3 August).

Once signed, the agreement will become Bangladesh's second bilateral free trade agreement after its Economic Partnership Agreement (EPA) with Japan, bringing the country closer to strengthening trade and investment ties with one of Asia's fastest-growing economies.

The agreement comes as the country steps up efforts to preserve preferential market access and expand bilateral trade and investment ahead of its LDC graduation. Bangladesh will gradually lose preferential access in many export markets after graduating, making bilateral trade agreements increasingly important to maintaining its competitiveness.

The breakthrough followed five days of negotiations involving around 60 representatives during the fifth and final round of bilateral talks, held in Seoul from 27 to 31 July.

Commerce Minister Khandaker Abdul Muktadir is scheduled to brief the media today following a Cepa Negotiation Conclusion Ceremony at the Ministry of Commerce.

Meanwhile, South Korea's Trade Minister Yeo Han-koo, who arrived in Bangladesh yesterday to attend the ceremony, paid a courtesy call on Prime Minister Tarique Rahman at his office in the Cabinet Division of the Secretariat, according to the Prime Minister's Deputy Press Secretary Shahadat Hossain Shadhin.

During the meeting, the South Korean minister briefed the prime minister on the proposed Cepa, saying the agreement would significantly expand bilateral trade and economic cooperation while encouraging greater South Korean investment in Bangladesh.

Tarique urged South Korean companies to invest in Bangladesh's toy manufacturing, electronics, telecommunications, automobile, semiconductor and shipbuilding sectors. He also assured them that the Bangladesh government would provide the necessary support for investment in the shipbuilding sector.

During the meeting, Tarique also invited the South Korean president to visit Bangladesh.

Broader market access

Under the proposed agreement, South Korea has agreed to open 111 specialised services sub-sectors to Bangladesh.

According to officials, this is the first time in the history of the World Trade Organization (WTO) that a graduating or least developed country has been granted market access across such a large number of services sub-sectors.

In return, Bangladesh has agreed to open 95 services sectors to South Korean investors while protecting sensitive domestic industries and small and medium-sized enterprises (SMEs).

Commerce ministry officials said the proposed agreement could secure duty-free access for Bangladeshi RMG, leather and leather goods, pharmaceuticals, jute and jute products in the South Korean market. Some trade preferences may also continue after Bangladesh graduates from LDC status.

The agreement is also expected to include provisions on rules of origin for selected products, improve market access for information technology, engineering, financial services and education, simplify customs procedures through digital customs systems, strengthen intellectual property protection, promote technical cooperation, skills development, industrialisation and infrastructure development, and establish an effective dispute settlement mechanism.

Officials said the Cepa would also make it easier for Bangladeshi IT professionals, civil, mechanical and shipbuilding engineers, and marine technicians to obtain temporary visas and work permits in South Korea.

Bangladeshi software firms would also be able to provide data processing and cloud services directly.

The agreement is also expected to create employment opportunities for Bangladeshi nurses, physiotherapists and skilled caregivers in South Korea under the country's legal employment framework.

Trade, investment opportunities

On the investment front, globally recognised South Korean engineering and technology companies are expected to gain greater opportunities to participate in Bangladesh's mega power plant projects, metro rail schemes, operations at the Matarbari deep-sea port and the expansion of 5G technology.

Bangladesh currently enjoys duty-free and quota-free (DFQF) market access for about 95% of its products in South Korea under the Asia-Pacific Trade Agreement (APTA) and WTO arrangements introduced in 2008, according to the Embassy of Bangladesh in Seoul.

Bilateral trade between the two countries currently stands at $1.39 billion, with Bangladesh exporting goods worth $491 million and importing $902 million from South Korea.

Bangladesh's major exports to South Korea include woven garments, knitwear, home textiles, leather and leather products, including footwear, frozen food, ceramic products, pharmaceuticals, jute and jute goods, tents and synthetic ropes.

Its main imports from South Korea include iron and steel, plastics and plastic products, machinery, mechanical appliances and boilers, paper and paperboard, and tanning and dyeing extracts.

Bangladesh is set to launch a National Rating System (NRS) that will, for the first time, give every government and private institution a standardised score based on how well it manages IT, information and cybersecurity.

Built on a four-pillar framework called the National ICT and Cybersecurity Maturity Rating, the system is expected to provide the country’s first evidence-based benchmark for measuring institutional cyber readiness. It comes as Bangladesh’s rapidly expanding digital landscape continues to face cyber breaches, fraud and financial theft.
The system will be unveiled today at the ICT Division, according to documents obtained by The Daily Star.The first pillar, IT and Information Security Governance, carries a weight of 20 percent and will assess leadership, policies, organisational structure and administrative accountability.

The second pillar, Infrastructure and Operations, accounts for 30 percent of the score. It will evaluate IT infrastructure, data centres, networks, servers, backup and disaster recovery systems, and change management.The system comes as Bangladesh’s rapidly expanding digital landscape continues to face cyber breaches, fraud and financial theftThe third pillar, Cybersecurity and Data Protection, also carries 30 percent. It covers security controls, data protection, risk management, incident response, vulnerability management and audit compliance.

The remaining 20 percent comes from Digital Service and User Maturity, which assesses the quality of digital services, user-centricity, IT service management, software governance and continuous improvement.Each of the 131 indicators under the four pillars will be scored on a five-point maturity scale, ranging from 0 (not implemented) to 4 (fully implemented or optimised). The intermediate levels are initial/ad hoc, partially implemented and largely implemented.

The weighted scores will then be combined into a total score out of 100 and converted into a letter grade from A (excellent) to E (poor).

Officials said the indicators were developed in line with internationally recognised standards and frameworks, allowing an institution’s overall ICT and cybersecurity readiness to be assessed through a single integrated system.

Bangladesh has long lacked a unified system to assess how well operators of critical information infrastructure, government agencies and private institutions are prepared to deal with cyber-attacks, data theft, ransomware and service disruptions, an ICT Division official said.He added that institutions currently differ widely in their policies, technical safeguards, staffing, infrastructure and digital service management, making it difficult to compare their cyber readiness or identify areas that need improvement.

The government expects the rating system to identify institutional weaknesses and risks, help prioritise IT audits and vulnerability assessment and penetration testing (VAPT), and support planning for budgets, staffing and infrastructure.

According to the documents, the system will also create a national maturity baseline by producing an annual ranking of public and private institutions. Officials said this would support evidence-based policymaking and strengthen the country’s cyber resilience and interoperability.

Future phases of the system will include an AI-based automated assessment engine, automated validation of submitted documents, sector-wise benchmarking, comparative analytics dashboards, and automated, risk-based recommendations and improvement roadmaps for individual institutions.

The framework is being introduced as Bangladesh faces growing cyber risks. As of June, the country had 13.60 crore internet users.

Several major cyber incidents have highlighted these risks.

In 2016, hackers stole millions of dollars from Bangladesh Bank in one of the world’s largest cyber-enabled bank thefts.

In 2023, a breach of a government birth and death registration website exposed the personal data, including national ID numbers, of more than 50 million Bangladeshis.
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In July 2025, Bangladesh Bank warned banks and financial institutions to strengthen their systems against possible cyber-attacks targeting critical information infrastructure, including the banking, healthcare and public service sectors.

According to the Bangladesh Cyber Threat Landscape 2024 report, published by an ICT Division unit, 188 cybersecurity incidents were reported in 2024.

The government should speed up domestic gas exploration to expand supply and reduce the country’s reliance on costly imports, according to economists, as the prolonged shortage hurts private investment, industrial output and export competitiveness.

The gas crisis has persisted for years, leaving industries to operate with inadequate supplies, said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD).

He said the recent disruption to gas supply from a floating liquefied natural gas (LNG) terminal had made the situation worse. After the floating storage and regasification unit (FSRU) resumes, it will only restore the previous level of shortages rather than solve the underlying problem.

Moazzem said higher LNG imports alone could not close the supply gap. Bangladesh must recognise gas shortages as a structural challenge in the near term while accelerating domestic gas exploration and diversifying its energy sources.

He said the business environment is already under pressure from weak global demand, sluggish exports and high inflation. In this context, protecting existing investment is more important than attracting new investment.

“The immediate priority should be ensuring that existing factories continue operating,” said Moazzem.

He also urged the government to prioritise financially distressed but operational factories when providing incentives, arguing that supporting struggling businesses would generate greater economic benefits than focusing on factories that have already closed.

He added that industries should gradually reduce their dependence on natural gas by investing in energy-efficient machinery, electricity-based production systems, renewable energy and other technologies that could cut energy use by 15 to 20 percent.

M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, said years of inadequate onshore and offshore gas exploration have left Bangladesh heavily dependent on imported LNG, making the country vulnerable to global supply disruptions and price volatility.

He said limited LNG import infrastructure has further constrained gas supply, forcing many industries to operate below capacity.

According to him, gas shortages have reduced production by 30 to 50 percent in sectors such as garments, textiles, steel and ceramics, while power disruptions caused by fuel shortages have also affected small and service-oriented businesses. The resulting uncertainty has discouraged both local and foreign investors from expanding operations or making new investments.

Masrur said Bangladesh should urgently secure additional long-term LNG supply agreements to stabilise gas availability and prices while ensuring adequate foreign exchange support for imports.

Over the medium term, he called for faster onshore and offshore gas exploration and quicker progress on renewable energy projects to reduce dependence on imported fuel.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said Bangladesh is facing more than a temporary industrial slowdown.

“The country is confronting a deepening investment and production crisis, where the energy shortage, banking-sector weaknesses, high financing costs, policy uncertainty and weak business confidence reinforce one another,” he said.

He said the gas shortage had become a major burden on industry. Factories operating below capacity faced higher unit costs, delayed deliveries and weaker competitiveness. The impact was even greater on new investment.

Razzaque said Bangladesh continues to pursue industrial growth despite declining domestic gas production, costly LNG imports that are vulnerable to external shocks, and inadequate transmission and distribution infrastructure, raising questions about the credibility of its policy approach.

“There has been no shortage of recommendations. The priority now is implementation,” he added.

Bangladesh should position itself to attract manufacturing relocating from China as the country moves towards advanced technology industries, while also pursuing broader zero-tariff access to the Chinese market, Prime Minister's Adviser Humaiun Kobir said today.

Speaking at the inauguration of the four-day Comparative Governance Forum 2026 in Dhaka, Humaiun said Bangladesh has a "tremendous opportunity" to strengthen economic growth and trade by deepening cooperation with China as global supply chains continue to evolve.

"As global supply chains shift and China moves from standard manufacturing into advanced technology, we can absorb some of those manufacturing lines through close collaboration with China," he said.

He said such cooperation would create jobs and help diversify Bangladesh's exports beyond textiles and light engineering. He also highlighted the potential for negotiating wider zero-tariff market access for Bangladeshi products in China.

The forum, jointly organised by the Bangladesh Institute of International and Strategic Studies (BIISS) and the School of International Relations and Public Affairs of Fudan University, is being held from 3 to 6 August.

The programme includes expert lectures, a panel discussion and field visits to the Padma Bridge and the Dasherkandi Sewage Treatment Plant.

Humaiun said Bangladesh and China have developed a comprehensive strategic cooperative partnership covering trade, investment, infrastructure, connectivity, education and people-to-people exchanges.

He said comparative governance is not about copying another country's model but about understanding how different countries address common challenges and adapting relevant lessons to national circumstances.

He also stressed that good governance is essential for sustainable development, saying institutions must remain transparent, accountable and responsive while embracing digital transformation and innovation to improve public services.

Chinese Ambassador to Bangladesh Yao Wen said Bangladesh-China relations have entered a new strategic phase under the vision of building a community with a shared future.

He said cooperation between the two countries is expanding in both scale and scope, including efforts to align development strategies and advance projects such as comprehensive management of the Teesta River, modernisation of Mongla Port and the China-Myanmar-Bangladesh Economic Corridor.

The ambassador said the forum would focus on practical governance issues, including poverty alleviation, digital governance, artificial intelligence and the digital economy, allowing participants to exchange experiences and explore policy solutions suited to Bangladesh's development needs.

Following the inaugural session, BIISS and Fudan University signed a memorandum of understanding to strengthen cooperation in research, academic exchanges, capacity building, joint publications and policy dialogue.

According to BIISS, the forum has brought together academics, researchers, policymakers and practitioners from Bangladesh and China to exchange views on governance, public policy and international affairs.

Discussions will cover China's governance model, targeted poverty alleviation, digital governance and artificial intelligence, industrialisation, the Global Development Initiative, and future Bangladesh-China cooperation.

The National Board of Revenue (NBR) has requested all businesses to complete the transition from their old business identification number (BIN) to the newly assigned BIN by November 30 of this year, following the restructuring of VAT Commissionerates aimed at strengthening tax administration and improving taxpayer services.

In a press release issued yesterday, the NBR said it has reorganised the jurisdiction of existing VAT commissionerates and established new commissionerates to expand the tax net, enhance revenue collection and ensure a more business-friendly environment through improved taxpayer services.
The move is part of the government’s broader administrative reform initiative to make the indirect tax system more dynamic, efficient and modern, it said. As part of the restructuring, the BINs of businesses have been transferred to the newly designated jurisdictions.

The NBR said only the last four digits of the BIN have been changed to reflect the respective VAT commissionerate and division, while all other business information associated with the BIN remains unchanged.

To ensure that import and export operations continue without disruption, both the old and new BINs of the affected businesses have been kept temporarily active in the customs’ ASYCUDA World system.

As a result, importers and exporters will be able to complete ongoing customs procedures-including letters of credit (L/Cs), bills of entry, customs declarations and other existing transactions-using their previous BINs during the transition period. The NBR urged all concerned businesses to complete all pending activities under their old BINs and ensure the use of the new BINs by the set deadline.

It warned that after the deadline, the old BINs will be automatically deactivated in the ASYCUDA World system. Thereafter, all customs-related import and export activities must be carried out exclusively using the new BINs.

The revenue board sought the cooperation of all stakeholders in ensuring uninterrupted economic activities and supporting its efforts to build a more dynamic, efficient and modern revenue administration

Price pressures spread across a wider range of goods and services in Bangladesh in June this year, signalling that inflation became more broad-based even as price trends varied across different categories.A larger share of items in the Consumer Price Index (CPI) basket recorded month-on-month price increases, indicating that inflationary pressures were affecting more products.
Out of the 382 CPI items, 261 recorded price increases compared with the previous month, while 22 registered price declines and 99 remained unchanged, Bangladesh Bank said in its quarterly Inflation Dynamics in Bangladesh report for the fourth quarter (April-June) of fiscal year 2025-26.

Month-on-month headline and food inflation accelerated in June, although non-food inflation edged down slightly. The food diffusion index also increased, with 82 of the 126 food items posting price gains, suggesting that food price pressures became more widespread.Meanwhile, steep hikes in gas tariffs and fuel and lubricant costs, along with solid fuel inflation, pushed energy inflation sharply higher in the last quarter of FY26, widening the gap between wage growth and consumer prices.

Out of the 382 CPI items, 261 recorded price increases compared with the previous month, while 22 registered price declines

ENERGY EMERGES AS BIGGEST DRIVER

Energy inflation remained elevated throughout the quarter, driven by strong positive momentum effects that reinforced upward pressure on energy prices, the report noted. The energy shock fed through to the CPI, lifting average headline inflation to 9.21 percent in Q4 from 8.8 percent in Q3 (January-March).

Energy inflation rose to 17 percent from 14.9 percent in the previous quarter, driven primarily by fuels and lubricants as well as a gas price hike.

Gas inflation surged to 24.0 percent year-on-year in Q4 from 11.3 percent in the previous quarter, while inflation for fuels and lubricants climbed to 13.8 percent from just 1.7 percent.

Solid fuels -- specifically firewood, agricultural by-products, cow dung and jute sticks -- remained the primary drivers of energy inflation, with their own inflation edging up to 21.8 percent from 21.5 percent.

This points to a “hidden” cost of living for households, particularly in rural areas, that rely on these traditional energy sources.

INFLATION OUTPACES WAGE GROWTH

Core inflation edged up to 8.4 percent in June from 8.0 percent a month earlier, driven in part by a surge in transportation and communication costs, particularly internet services.

Food inflation also rose to 8.7 percent, with vegetables emerging as the biggest contributor. Their share of overall food inflation jumped to 37 percent from 22.7 percent a month earlier.

However, protein-rich items -- including fish, meat and pulses -- remained the single largest driver, accounting for 46.0 percent of food inflation.

Retail and wholesale prices of most essential commodities increased during the quarter, with only a few exceptions. Farm-gate egg prices and marketing margins rose sharply in May, while energy-related price pressures continued to squeeze household budgets.

The wage-price gap widened in April-June compared with the previous quarter, although it narrowed marginally towards the end of the period, according to the Bangladesh Bank.

The central bank said the slight improvement stemmed mainly from a moderation in headline inflation rather than any meaningful acceleration in wage growth.

Wage growth stood at 8.2 percent in June, remaining below headline inflation of 9.2 percent. Among all divisions, Dhaka recorded the highest wage growth.
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The Asian Development Bank’s July 2026 outlook, cited in the report, projected that Bangladesh’s headline inflation would remain high at 9 percent in FY26 amid elevated global energy prices linked to the Middle East conflict.

The central bank said maintaining policy vigilance remained imperative to anchor inflation expectations, mitigate persistent inflationary pressures and safeguard households’ purchasing power going forward.

Bangladesh recorded its highest monthly exports in the past 12 months in July, with shipments totalling $4.72 billion. Despite the strong performance, exports declined 0.9% year-on-year, and exporters caution growth is likely to improve in the months ahead.

Data from the Export Promotion Bureau (EPB), however, show exports rose by more than 12% from June.

Exporters said July is typically the strongest export month as shipments of goods for the upcoming winter season peak during this period, making the higher export value expected.

They, however, cautioned that export growth is unlikely to improve in the coming months. They cited stagnant global demand for Bangladesh's main export item, ready-made garments (RMG), the country's ongoing energy crisis, and fresh payment-related complications involving leading Polish buyer LPP as major concerns.

An analysis of EPB data shows that Bangladesh exceeded $4 billion in monthly exports four times over the past year. Exports totaled $4.77 billion in July last year.

According to EPB data, most major export sectors outside garments recorded growth in July compared with the same month of the previous fiscal year.

Exports of plastic products rose 1.98%, leather and leather products 2.81%, jute and jute goods 54%, home textiles 14.37%, other footwear 5.52%, and specialised textiles 3%.

Ready-made garments account for more than 80% of Bangladesh's total exports.

Shovon Islam, managing director of Sparrow Group, one of Bangladesh's leading garment exporters with annual exports of around $350 million, told The Business Standard, "Exports are usually higher in July because shipments for the next winter season peak during this period. Large volumes of sweaters, along with woven garments, are exported at this time."

He said this seasonal trend explains the higher export volume in July.

Some exporters said the year-on-year decline, despite record monthly exports, was mainly due to an exceptionally high base last year, when many exporters accelerated shipments to the United States ahead of the implementation of new US tariffs from 7 August. As a result, export growth appears weaker this July despite the strong performance.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) echoed this view in a statement.

According to the BGMEA, Bangladesh's RMG exports fell 1.92% year-on-year to $3.89 billion in July, down from $3.96 billion in July 2025.

"However, it is important to note that July 2025 was an exceptionally strong month, marking the highest single-month export performance in Bangladesh's RMG history. Against that extraordinary base, the current figure of $3.89 billion represents a welcome start to the new fiscal year," the statement said.

BGMEA also noted that the industry is operating amid a severe gas crisis that is limiting production capacity, as well as ongoing geopolitical uncertainties disrupting global trade and supply chains.

Despite these challenges, it said, Bangladesh's RMG sector has remained resilient.

Exporters see little growth before January

Inamul Haq Khan Bablu, senior vice-president of BGMEA and managing director of Ananta Garments, said garment exports are unlikely to grow significantly before December despite July's strong performance.

He attributed this to weak global demand, buyers' concerns over Bangladesh's ability to meet delivery schedules because of the gas shortage, and uncertainty surrounding Polish retailer LPP, which may reduce orders from Bangladesh.

Bangladeshi exporters have alleged that LPP has withheld payment of around $40 million for exports made to Russian buyers through the company. Industry sources said the dispute prompted LPP to suspend new purchase orders from Bangladesh.

"We expect exports to recover from January," Bablu said.

He added that buyers have expressed concern over whether Bangladeshi manufacturers will be able to complete orders on time because of the ongoing gas crisis.

Another exporter, requesting anonymity, said orders could decline further if the energy crisis is not resolved quickly.

Shovon Islam also warned that Bangladesh could lose orders if the gas supply situation does not improve.

"Under the current circumstances, Bangladesh's garment exports are unlikely to grow at least until November," he said.

Merchandise exports from Bangladesh declined 1 percent year-on-year to $4.72 billion in July because of the sluggish trend in garment shipments.

However, the figure is 12.49 percent higher than June's $4.2 billion, according to data released today by the Export Promotion Bureau (EPB).

The EPB said Bangladesh's flagship readymade garment (RMG) sector posted remarkable growth, raising hopes of achieving the export targets set for the 2026-27 fiscal year.

In July 2026, garment exports totalled $3.88 billion, marking an impressive 14.73 percent month-on-month growth from June's $3.38 billion, the EPB data said.

Year-on-year, the sector experienced a 1.92 percent contraction, aligning with the overall merchandise trend as global buyers adjusted their post-pandemic inventory levels.

In terms of export destinations, the United States retained the top position, reaffirming the strong commercial ties between the two nations.

Exports to the United States in July 2026 reached $918.74 million, recording 0.25 percent growth over the same month last year—a bright spot amid the mixed indicators.

Germany secured the second position with exports worth $495.30 million, while the United Kingdom ranked third with $478.42 million.

Notably, Bangladesh's exports to India and Saudi Arabia registered the highest growth rates among major markets, surging by 15.30 percent and 10.64 percent, respectively, according to the EPB data.

With the United States leading demand and the RMG sector regaining strong monthly momentum, Bangladesh is well-positioned to capitalise on upcoming autumn and festive-season orders, the Export Promotion Bureau said in a statement.

Exporters are actively working to bridge the year-on-year decline through new product lines and non-traditional markets, ensuring the export trajectory remains firmly upward, the statement added.

The Cabinet has approved a proposal to revoke the Essential Medicines List 2026 and the Drug Pricing Mechanism 2026, citing procedural irregularities in their formulation.

The decision was taken at a Cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat yesterday (3 August).

According to a handout issued by the Press Information Department (PID), the government remains committed to ensuring the availability of safe, effective, quality and affordable medicines.

The 2026 Essential Medicines List and Drug Pricing Mechanism were formulated without seeking the advice of the National Drug Advisory Council, a requirement under the Drugs and Cosmetics Act, 2023.

The two policies were introduced in January 2026 during the tenure of the interim government. Their legality was later challenged before the High Court, where the matter remains under judicial consideration.

The cabinet noted that the National Drug Advisory Council was formally constituted on 29 June in accordance with the 2023 law. It also approved a proposal to include the director general of the Directorate General of Health Services (DGHS) as a member of the council.

Despite the cancellation of the 2026 policies, the 1994 Essential Medicines List and the government-approved pricing system for those medicines will remain in force.

The government also decided to update the essential medicines list and formulate a revised pricing mechanism to ensure medicines remain affordable for consumers while maintaining healthy competition in the pharmaceutical market.

Individual taxpayers can now enjoy a tax rebate of up to 5 percent, capped at Tk 25,000, if they file their income tax returns by September 30.

The incentive was introduced through the Finance Act 2026.

Taxpayers filing their returns between July 1 and September 30 will qualify for a tax rebate of 5 percent of the tax payable, up to a maximum of Tk 25,000, the National Board of Revenue (NBR) said in a press release yesterday.

No rebate will be available for returns filed between October 1 and December 31. Moreover, taxpayers who submit their returns after December will have to pay additional tax.

Those filing returns between January 1 and March 31, 2027, will have to pay an additional tax equal to 2 percent of the tax payable or Tk 3,000, whichever is higher.

For returns filed between April 1 and June 30, 2027, the additional tax will rise to 5 percent of the tax payable or Tk 5,000, whichever is higher.

The NBR said the new incentive is intended to encourage early filing, strengthen voluntary tax compliance and make tax administration more efficient and orderly.

The move comes as the tax authority seeks to broaden the country’s narrow tax base and improve compliance amid persistent revenue collection challenges.

The NBR launched its e-Return service for individual taxpayers for the 2026-27 tax year on July 22.

Taxpayers can file their returns online through the etaxnbr.gov.bd portal and pay taxes digitally using bank transfers, debit and credit cards, mobile financial services and other digital payment methods.

After successfully submitting an accurate return, taxpayers can instantly download an acknowledgement receipt and an income tax certificate.

The revenue authority said its officials would provide assistance through the NBR call centre and other electronic channels during office hours on working days if taxpayers encounter any difficulties while filing returns online.

Bangladesh received $2.86 billion in remittances in July, the first month of FY27, marking a 15.79% year-on-year increase, according to the Bangladesh Bank data released today (2 August).

The country received $2.47 billion in remittances in July of the previous fiscal year while inflows stood at $2.82 billion in June this year.

Despite the annual growth, July recorded the second-lowest monthly remittance inflow in the past nine months, central bank data showed.

Dr Mohammad Jalal Uddin Sikder, migration expert and associate professor at North South University, said the Middle East war may have affected remittance flows.

"Since the Middle East is the main hub for remittances, the war could have had an impact. It is important to examine which countries recorded lower inflows. During conflicts, hundi networks often become more active by offering better exchange rates, so the government should investigate whether remittances are shifting to informal channels," he told this newspaper.

Bankers said remittance inflows over the past two months have fallen short of expectations, largely due to the conflict in the Middle East, warning that weaker inflows could add pressure to the country's foreign exchange market.

A managing director of a private bank told TBS that the US dollar has continued to strengthen, with many banks settling import letters of credit at Tk123.95 last week.

"The dollar appreciates when demand outpaces supply," he said.

The central bank has also suspended dollar purchases from commercial banks for the past one and a half months as the taka faces depreciation pressure.

During FY26, the regulatory bank bought $6.4 billion from banks when the taka was under appreciation pressure. Its last dollar purchase was on 4 June. Bangladesh received a record $35.5 billion in remittances in FY26.

Economists say the strong remittance inflow has helped improve the country's current account balance by narrowing the external deficit.

Most listed non-life insurance companies in Bangladesh posted stronger earnings in the April-June quarter of 2026, driven by lower operating costs following the zero-commission policy, improved underwriting, stronger marine insurance business and higher investment income, industry stakeholders said.

An analysis of Dhaka Stock Exchange (DSE) data shows that 41 of the country's 43 listed non-life insurers have so far published their unaudited April-June financial statements.

Of them, 31 reported higher earnings per share (EPS), while 10 posted lower EPS. Two companies have yet to disclose their quarterly results.The stronger earnings have also lifted investor sentiment, with shares of several insurers rising after the release of their quarterly results.
Islami Commercial Insurance posted the highest profit growth among listed insurers, with quarterly EPS surging 350% to Tk0.63 from Tk0.14 a year earlier. Its January-June EPS rose to Tk0.94 from Tk0.35.

The company said higher net profit after tax drove the earnings growth. However, net operating cash flow per share (NOCFPS) fell to Tk0.12 from Tk0.16 due to lower premium income and higher claim payments. Net asset value (NAV) per share increased to Tk18.31 as of 30 June 2026 from Tk17.36 at the end of December 2025. Its share price gained 1.79% to Tk34.20 on the DSE yesterday.

Express Insurance posted the second-highest growth, with quarterly EPS jumping 279% to Tk0.53 from Tk0.14. Its first-half EPS increased to Tk0.87 from Tk0.43, while NOCFPS improved to Tk0.92 from Tk0.78.

Asia Insurance reported a 200% rise in quarterly EPS to Tk0.33 from Tk0.11. The company attributed the growth to the elimination of agent commission expenses and the absence of additional provisions against investments in listed shares. These factors also lifted first-half NOCFPS to Tk1.36 from Tk0.66.

Other strong performers included Global Insurance, whose EPS rose 184%; Phoenix Insurance, 176%; Paramount Insurance, 145%; Agrani Insurance, 143%; Takaful Islami Insurance, 129%; and City Insurance, 119%.

Among the larger companies, Peoples Insurance reported a 91% increase in EPS, followed by Pioneer Insurance (74%), Provati Insurance (58%), Karnaphuli Insurance and Nitol Insurance (55% each), Eastland Insurance (54%), United Insurance (45%) and Bangladesh National Insurance (42%).

On the other hand, 10 companies posted lower earnings during the quarter.

Infographic: TBS
Infographic: TBS
Sonar Bangla Insurance posted the steepest earnings decline, with consolidated EPS dropping 42% to Tk0.26 from Tk0.45. Despite weaker earnings, consolidated NOCFPS rose to Tk0.69 from Tk0.21, while consolidated NAV per share increased to Tk20.54 from Tk20.02.

Other insurers reporting lower EPS were Republic Insurance (down 14%), Purabi General Insurance, Mercantile Islami Insurance and Northern Islami Insurance (9% each), Dhaka Insurance (8%), Prime Insurance (7%), Crystal Insurance (4%), Bangladesh General Insurance (2%) and Sena Insurance (1%).

Industry stakeholders said recent regulatory reforms have begun strengthening the sector's financial health.

Newly appointed Insurance Development and Regulatory Authority (Idra) Chairman Mir Nadia Nivin has made the settlement of long-pending insurance claims the regulator's top priority.

Idra has already started settling nearly Tk4,000 crore in outstanding claims owed by the country's seven most financially distressed life insurers by liquidating land, government treasury bonds, fixed deposits with financially sound banks and other marketable assets.

The regulator is also working with Bangladesh Bank to recover insurers' deposits trapped in financially troubled banks.

Industry insiders said the zero-commission policy has sharply reduced excessive commission expenses, unnecessary policy sales and the practice of artificially inflating premium income. As a result, operating costs have fallen, while insurers' underlying underwriting performance has become more transparent in their financial statements.

They also said easing geopolitical tensions in the Middle East during the April-June quarter helped revive international trade and shipping, supporting marine insurance business. Meanwhile, the capital market's recovery boosted investment income for many insurers, contributing to stronger profitability.

However, they cautioned that insurers with higher claim settlements continue to face earnings pressure. Sustaining the sector's recovery, they said, will require stronger corporate governance, sound risk management, disciplined underwriting and continued cost control.

Gold slid 2 percent on Friday as the US dollar rebounded from a more than one-month low hit in the previous session,
though the metal was still on track for its first monthly gain in five as weaker inflation data reduced expectations of further US rate hikes.
Spot gold was down 1.3 percent at $4,049.83 per ounce at 1:40 p.m. EDT (1740 GMT), after falling 2 percent earlier in the session.US gold futures for August delivery dropped 1.3 percent to $4,107.
Gold has gained 1.1 percent so far this month, its biggest monthly increase since February.

The gains have been primarily driven by softer inflation data, which led traders to scale back expectations for Federal Reserve interest rate hikes for the year and as oil prices retreated to pre-Iran war levels earlier this month.“Although gold is on the cusp of ending a four-month losing streak, the precious metal has struggled to carve a bigger gap above the psychological $4,000 level,” said Han Tan, chief market analyst at Bybit.
The metal remains supported above $4,000 by expectations that Fed Chair Kevin Warsh may broaden the central bank’s focus beyond its preferred inflation measures and rate increases, Tan said.

Data on Thursday showed US inflation slowed in June, but the easing was likely temporary as renewed hostilities in the Middle East lifted oil prices.
Warsh this week pledged an unwavering commitment to bring inflation down without signaling a readiness to raise interest rates.The dollar was steady after dropping about 2.4 percent on Thursday, in its biggest one-day drop since January 2023.A stronger dollar makes bullion more expensive for holders of other currencies.Traders see a 65 percent chance of a rate hike in September, versus a more than 80 percent chance a week before, according to the CME FedWatch Tool.

Elsewhere, China’s market regulator urged solar companies to resist “vicious” price competition in a price compliance guidance meeting on Friday, a statement showed.

Foreign aid disbursements to Bangladesh fell in the last fiscal year while repayments on external debt continued to rise, reducing the country’s net inflow of foreign funds, shows government data.

Total foreign aid disbursements fell 5.8 percent year-on-year to $8.07 billion in fiscal year 2025-26 from $8.57 billion a year earlier, according to provisional data released by the Economic Relations Division (ERD) yesterday.

During the same period, external debt servicing rose 10 percent to $4.49 billion from $4.09 billion.

Economists say the trend could add to pressure on foreign exchange reserves at a time when high energy import bills, weaker export earnings and slower remittance growth are weighing on external finances.

In FY26, the net inflow of foreign funds fell to about $3.58 billion from $4.48 billion in the previous fiscal year, a decline of around 20 percent, according to ERD data.

The fall in disbursements was driven mainly by lower project assistance, which dropped to $8.02 billion from $8.52 billion, despite an increase in grants.

Of the total amount, about $3.5 billion was disbursed in June alone, with most of it coming as budget support. It points to a slowdown in regular project loan disbursements.

At the same time, debt repayments continued to increase as the country entered a period of higher repayments on external loans taken out in previous years.

Economists said Bangladesh needs to improve project implementation and speed up the use of committed foreign loans to support development spending while easing pressure on foreign exchange reserves.

The issue has become more pressing as the country continues to spend billions of dollars each year on fuel and other essential imports, making steady foreign currency inflows vital for maintaining external sector stability.

Despite a strong finish in June, export earnings for FY26 stood at $48 billion, down 0.58 percent from the previous fiscal year.

ERD data also show that foreign aid commitments fell sharply during the year. Total commitments dropped to $5.24 billion from $8.32 billion a year earlier, largely because of lower loan commitments for development projects.

Meanwhile, Bangladesh’s pipeline of committed but undisbursed foreign loans shrank to $39.26 billion, reflecting weaker fresh loan commitments.

Mustafizur Rahman, distinguished fellow at local think tank Centre for Policy Dialogue (CPD), said the figures reflect growing pressure on Bangladesh’s external sector as foreign aid disbursements slow while debt servicing obligations continue to rise.

“One of the main reasons for lower disbursements is weak implementation of ADP [Annual Development Programme],” he said. “Although nearly $3.5 billion was disbursed in June, much of it was budget support. Without that, total disbursements would have been even lower.”

Mustafizur said Bangladesh still has around $42 billion in committed but undisbursed foreign loans, highlighting the need to improve project implementation and speed up the use of the existing pipeline.

“Debt servicing will continue to increase as many large infrastructure projects undertaken around 2015 and 2016 have moved beyond their grace periods. We are now repaying both principal and interest, which is pushing up external debt servicing,” he said.

He said net external borrowing will continue to shrink unless loan utilisation improves.

“This will have negative implications for the balance of payments, foreign exchange reserves and exchange rate stability, especially if import demand picks up,” he said.

Mustafizur also stressed the need to negotiate future external borrowing on favourable terms, saying Bangladesh’s recent sovereign credit rating downgrade could raise borrowing costs.

“The government must improve ADP implementation, ensure projects are completed on time and deliver good value for money, while securing better borrowing terms from development partners,” he added.

The World Bank remained the country’s largest source of foreign aid in FY26, disbursing $2.07 billion, according to ERD data. The Asian Development Bank (ADB) followed with $1.91 billion, while the Asia, JEC and F&F wing provided $1.55 billion.

Europe accounted for another $1.31 billion in disbursements, while development partners under the America and Japan wing released $795.32 million.

A nationwide social movement is needed to speed up the adoption of renewable energy in Bangladesh, Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning, said on Saturday.

He said public demand, rather than government policy alone, would drive the country’s transition to clean energy and reduce its dependence on imported fossil fuels.

Speaking at a discussion titled “Distributed Renewable Energy: The Future Solar Solution for Bangladesh” at the Economic Reporters’ Forum (ERF) auditorium in Dhaka, Titumir said renewable energy should become a shared public cause to ensure a livable planet for future generations.

“Our first priority should be to build a social movement. We need collective and public action to make access to renewable energy a right,” he said.

The discussion was organised by the Economic Reporters’ Forum in collaboration with the Distributed Renewable Energy Platform (DREP).

Titumir said Bangladesh’s shift to renewable energy should start by creating public demand, arguing that the market will respond when people want cleaner energy.

“If we can create the demand, the supply system will follow,” he said, urging civil society organisations, NGOs and microfinance institutions to help expand access to distributed solar technologies.

He said renewable energy could lower household energy costs, leaving families with more disposable income for other needs and investments.

Highlighting Bangladesh’s reliance on imported fuels, Titumir said wider use of rooftop solar systems could significantly reduce gas and LPG consumption and improve the country’s energy security.

“Energy is sovereignty,” he said. “We must move away from the culture of dependence and build a culture of self-reliance.”

The adviser also stressed the need to develop local manufacturing of renewable energy equipment, including solar panels, batteries and inverters, to support the sector’s long-term growth.

He said the government has introduced fiscal incentives and policy reforms to encourage investment in renewable energy technologies and electric vehicle manufacturing.

Titumir also called on NGOs to include renewable energy financing in their microfinance programmes, saying development organisations could help speed up the adoption of clean energy across the country.

“The success of this transition depends on a social movement,” he said. “Every household, school, hospital, office and shop should gradually become part of the renewable energy journey.”

He added that expanding distributed renewable energy would reduce Bangladesh’s dependence on imported fuels, cut the import bill, strengthen energy security and support sustainable economic growth.

Others who spoke at the event included Khondaker Golam Moazzem, coordinator at DREP; Md Mehadi Hasan Shamim, research associate at CPD; ASM Munir, company secretary of the Bangladesh Sustainable and Renewable Energy Association; Hasan Mehedi, chief executive officer of the Coastal Livelihood and Environmental Action Network; Ishtiaque Ahmed, director of engineering and innovation at SOLshare; Abul Azad, manager of Just Energy Transition at ActionAid Bangladesh; Doulot Akter Mala, president of the ERF; and Abul Kashem, the forum’s general secretary.

Individual taxpayers can now enjoy a tax rebate of up to 5 percent, capped at Tk 25,000, if they file their income tax returns by September 30.

The incentive was introduced through the Finance Act 2026.

Taxpayers filing their returns between July 1 and September 30 will qualify for a tax rebate of 5 percent of the tax payable, up to a maximum of Tk 25,000, the National Board of Revenue (NBR) said in a press release today.

No rebate will be available for returns filed between October 1 and December 31. Moreover, taxpayers who submit their returns after December will have to pay additional tax.

Those filing returns between January 1 and March 31, 2027, will have to pay an additional tax equal to 2 percent of the tax payable or Tk 3,000, whichever is higher.

For returns filed between April 1 and June 30, 2027, the additional tax will rise to 5 percent of the tax payable or Tk 5,000, whichever is higher.

The NBR said the new incentive is intended to encourage early filing, strengthen voluntary tax compliance and make tax administration more efficient and orderly.

The move comes as the tax authority seeks to broaden the country’s narrow tax base and improve compliance amid persistent revenue collection challenges.

The NBR launched its e-Return service for individual taxpayers for the 2026-27 tax year on July 22.

Taxpayers can file their returns online through the etaxnbr.gov.bd portal and pay taxes digitally using bank transfers, debit and credit cards, mobile financial services and other digital payment methods.

After successfully submitting an accurate return, taxpayers can instantly download an acknowledgement receipt and an income tax certificate.

The revenue authority said its officials would provide assistance through the NBR call centre and other electronic channels during office hours on working days if taxpayers encounter any difficulties while filing returns online.

Bangladesh Bank (BB) has decided to issue its Monetary Policy Statement (MPS) on a quarterly basis, replacing the current six-month cycle, in an effort to make monetary policy more responsive to rapidly changing domestic and global economic conditions.

The central bank is expected to implement the new system from September. Officials said the move is intended to make the MPS more realistic, timely, and inclusive, as macroeconomic developments have become increasingly volatile.

Bangladesh Bank had introduced an annual MPS during the tenure of former Governor Fazle Kabir. The frequency was later revised to a half-yearly schedule under former Governor Abdur Rouf Talukder.

The International Monetary Fund (IMF) had also recommended more than a year ago that Bangladesh Bank adopt a quarterly MPS framework to improve policy responsiveness and strengthen monetary management.

The proposal was recently discussed at a meeting of the relevant parliamentary standing committee, which endorsed the initiative, paving the way for the central bank to formally introduce quarterly monetary policy statements from September next.

A monetary policy statement is an official document released by a central bank that outlines its economic stance, inflation targets, and key interest rates to manage the money supply.

Seeking anonymity, a BB official said they decided to issue MPS on a quarterly basis probably from September next. "We are planning to issue a press release very soon to update our stakeholders," he said.

The central banker said the monetary policy committee normally meets in every three months to assess global and domestic macroeconomic indicators before making any adjustment for betterment of the money market.

He said the IMF earlier as part of its 4.70 billion US dollar lending package recommended the banking regulator to go for quarterly issuance of MPS replacing the existing six-month ones.

It is known that the BB has already been analysing MPS of its peer countries to make it a better one.