Budget 2026-27: Tax Relief for Electronic Products, Higher Duties on Luxury Goods

The first national budget under the government led by Prime Minister Tarique Rahman is set to be presented in Parliament at 3:00 pm on Thursday, June 11. Finance Minister Amir Khasru Mahmud Chowdhury will place the budget proposal before the House. Once approved, it will become Bangladesh’s 55th national budget and the first budget of the current administration.

According to sources at the Ministry of Finance, the proposed budget for the 2026-27 fiscal year is expected to amount to Tk 938,000 crore. The government has set a revenue collection target of Tk 695,000 crore, while the budget deficit is projected at Tk 243,000 crore.

The budget is also expected to target GDP growth of 6.5 percent and keep inflation within 7.5 percent. Around Tk 300,000 crore is likely to be allocated for the implementation of the Annual Development Programme (ADP).

Relief for Households

The upcoming budget is expected to bring tax and duty reductions on a range of household electrical and kitchen appliances, potentially lowering their market prices.

Products likely to benefit from reduced taxes include blenders, juicers, mixers, grinders, electric kettles, irons, rice cookers, multi-cookers, pressure cookers, electric cookers, induction cookers, infrared cookers, water purifiers, and water heaters or geysers.

Tax Benefits for Computers and Digital Devices

To encourage the adoption of digital technologies and expand access to information technology, the government may reduce customs duties and taxes on computers, monitors, and printers.

Sources also indicate that initiatives are being considered to lower the prices of 15 essential products designed for persons with disabilities.

Good News for Mobile Users

In the telecommunications sector, the government is considering the withdrawal of the existing 1 percent surcharge on mobile services to provide relief to consumers.

Additionally, the current Tk 300 tax imposed on the purchase of new SIM cards may also be reduced.

Products That May Become More Expensive

At the same time, the government is planning to increase taxes and duties on selected products to protect domestic industries and boost revenue collection.

Under the proposed measures:

• Import duty on cashew nuts may rise from 5 percent to 25 percent.
• A 15 percent VAT may be imposed on imported premium frozen fish.
• Taxes and VAT at the production stage of mild steel (MS) rods and related construction materials could increase by around 10 percent.
• Additional taxes may be imposed on imported cosmetics, luxury goods, and high-value imported food products.
• A 20 percent VAT may be introduced on the import of 10 new product categories.

Higher Taxes on Tobacco and Nicotine Products

As part of public health protection efforts, supplementary duties on nicotine pouches may be increased.

The proposed budget also includes a 300 percent supplementary duty on raw materials used for cigarette filter production and a 350 percent supplementary duty on nicotine. These measures are expected to increase the retail prices of tobacco and nicotine-related products.

Stakeholders say the government’s dual strategy of providing tax relief on essential consumer goods while increasing taxes on luxury and health-risk products aims to ease the financial burden on ordinary citizens, strengthen revenue collection, and promote public health objectives simultaneously.

//DBTech/FI/MUIM/OR//