Budget FY27: PM proposes tax cuts for industries, digital economy
Tarique Rahman proposed a series of tax measures, including reducing tax rates for private universities, expanding tax-free benefits for ethnic minorities, and lowering duties and taxes on the import of raw materials for shrimp, productive industries and local industries.
Prime Minister Tarique Rahman has proposed a series of tax cuts and relief measures for industries and the digital economy in the proposed budget for fiscal year 2026-27, including reducing VAT on digital advertisements and lowering duties on raw material imports.
Speaking during the general discussion on the proposed budget for fiscal year 2026-27 in Parliament today (29 June), Tarique proposed a series of tax measures, including reducing tax rates for private universities, expanding tax-free benefits for ethnic minorities, and lowering duties and taxes on the import of raw materials for shrimp, productive industries and local industries.
To encourage the digital economy, he proposed reducing the existing 15% VAT on advertisements placed through social media, OTT platforms, search engines, online marketplaces and other digital platforms to 5%.
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The prime minister said, "Many businesses make payments through informal channels instead of formal banking systems due to the high VAT rate, resulting in revenue losses for the government and affecting transparency."
He said the government does not want to hide the problems, adding that the country's economy has been affected by one and a half decades of corruption, irregularities and economic mismanagement.
"The government is making maximum efforts to overcome the situation and meet people's expectations."
"Bangladeshi people are hardworking, the youth are talented, farmers are productive, expatriates are patriotic and entrepreneurs have potential," he said, adding that there is no alternative but for the country to recover and move forward.
