United News of Bangladesh

Former Bangladesh Bank Governor Dr. Ahsan H. Mansur on Thursday called for the immediate implementation of proposed amendments to the Bank Company Act to ensure discipline and restore confidence in the country's troubled financial sector. Sharing his immediate reactions to the national budget proposed for FY 2026-27, the former central bank chief emphasized that concrete structural reforms, rather than mere promises, are essential to dismantle single-family or concentrated control over commercial banks. "We previously proposed amendments to the Bank Company Act to limit the tendency of families to maintain excessive control over commercial banks. If these amendments are implemented, we will know that the government is genuinely sincere about reducing single or concentrated ownership. We want to see these reforms materialize," Dr. Mansur said. Highlighting the critical issue of external interference in the banking sector, the noted economist stressed that the independence of the central bank must be safeguarded through legislative backing. He disclosed that a draft proposal aimed at bolstering the autonomy of Bangladesh Bank had been submitted to the government and remains under consideration. He credited the current Adviser on Economic Affairs, Dr. Rashed Al Mahmud Titumir, with contributing significantly to refining the draft during his tenure on the Bangladesh Bank board. "If this revised draft is approved, Bangladesh Bank will become truly independent, and only then can we effectively eliminate external interference. Interference will not stop on its own," he noted. Dr. Mansur also raised questions regarding the status of the Financial Institutions Division (FID), pointing out a mismatch between government pledges and the ground reality. "The government had previously talked about abolishing the FID, and the Finance Minister himself expressed this intention. However, the division continues to function with full authority. If the government is truly committed to reducing state intervention, it should move forward with this crucial institutional reform," he stated. Warning that the ongoing economic uncertainties are largely self-inflicted, the former governor stressed that only visible, decisive actions can rebuild public trust and bring order back to the financial landscape. "This is not a matter of personal disputes or political rivalry; it is an issue of supreme national interest. All political issues can be resolved through dialogue, and this crisis too can be resolved based on mutual discussion and consensus," Dr. Mansur said, urging the newly elected administration to prioritize the interests of commercial banks, ordinary depositors, and the national economy.

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) in a statement Thursday expressed their satisfaction over the government's move to withdraw the existing specific tax on SIM cards, and replace it with a 15% VAT levied on the actual sale price. AMTOB Secretary General Lt Col. Mohammad Zulfikar (Retd.) said, "In the proposed national budget for FY 2026–27 presented in the National Parliament today (Thursday), decision to convert the VAT on mobile SIM cards to standard value-based system is a timely and welcome initiative. Under this proposal, the existing will be withdrawn and replaced with a 15% VAT levied on the actual sale price." He added that the association believes this will play a positive role in bringing in nearly 40 percent of the country's marginalized population—who still remain outside the reach of telecommunications services—and will accelerate digital progress. The statement however also adds that to ensure the sustainable growth of the sector and further strengthen the pace of digital transformation, the government should reconsider several important policy measures, including reducing the tax burden on consumers, rationalizing the corporate tax rate, withdrawing VAT on spectrum, and removing the supplementary duty imposed on OTT services. "We hope the government will give due consideration to these issues and adopt a more balanced and forward-looking policy framework that will make Bangladesh's telecommunications sector more dynamic and inclusive," the statement added.

The Bangladesh Mobile Phone Consumers' Association (BMPCA) has welcomed the government's decision to withdraw the Tk 300 tax on new SIM cards in the proposed national budget for fiscal year 2026–27, describing it as a positive step towards greater digital inclusion. In a reaction to the budget issued on Thursday night, Association President Mohiuddin Ahmed said the move would benefit ordinary mobile users and help expand access to digital services across the country. “The withdrawal of the SIM tax will make it easier for people to obtain new connections. It will provide significant relief, particularly for low-income groups, students and rural populations,” he said. Mohiuddin noted that the decision would also accelerate the use of digital services, including mobile banking, online education and e-governance platforms. However, he expressed concern that removing the SIM tax alone would not be sufficient to ensure meaningful relief for consumers. “Mobile users are still burdened by the high rates of VAT, supplementary duty and other taxes imposed on mobile and internet services. These taxes continue to place a significant financial strain on consumers,” he said. He said the government should reduce the excessive tax burden on telecom services, ensure affordable internet access, improve network quality in rural areas and take effective steps to expand broadband infrastructure to make the telecommunications sector truly consumer-friendly. The association also urged the government to adopt a coordinated and long-term policy framework for the telecommunications sector to support the country's digital transformation goals. It said such measures are essential to ensure that all citizens can access quality telecom and internet services at affordable prices.

The government has proposed an allocation of Tk 4,401 crore for the Election Commission (EC) in the proposed national budget for the fiscal year 2026–27, marking a slight increase from the outgoing fiscal year. The EC is going to get increased allocation to arrange elections to some local bodies and with other electoral and administrative activities in the coming fiscal year. Finance Minister Amir Khosru Mahmud Chowdhury unveiled the proposed national budget for FY 2026-2027 in Parliament on Thursday afternoon. According to the proposed budget, Tk 4,401 crore has been allocated for the Election Commission Secretariat for 2026-2027 fiscal year, up from Tk 2,956 crore in the previous FY2025-2026 and Tk 4,346 crore in the revised budget of the same fiscal year. The allocation was higher in the revised budget from the original one in the outgoing fiscal year as the EC conducted the 13th parliamentary election on February 12, 2026. According to budget documents, the Election Commission plans to conduct two city corporation elections, four municipal elections, 10 upazila parishad elections, 10 union parishad elections, and by-elections to the Jatiya Sangsad and local government bodies in FY2026–27. Other planned activities include observance of National Voter Day at both central and field levels, updating the voter list with photographs, and continued issuance, printing and distribution of National Identity Cards (NID), including smart cards and laminated cards. The EC will also continue registration of citizens below 18 years of age, expand services for expatriate Bangladeshis, and further develop the NID system infrastructure. Besides, the commission will conduct audits and documentation of NID-related digital systems, strengthen cybersecurity measures, and continue partner services for identity verification. The EC plans for infrastructure development, including establishing a disaster recovery site (DRS) in Cumilla, setting up a mini archive/library for NID records, and strengthening ICT-based election management systems.    

A high-level bilateral meeting between Bangladesh and the United States was held in Washington DC on June 10, aiming to strengthen long-term cooperation in the energy sector, address global supply chain challenges, and expand technological partnerships. The Bangladesh delegation was led by State Minister for Energy and Mineral Resources Aninda Islam Amit while the US side was headed by U.S. Department of Energy's Under Secretary of Energy Kyle Hausvet, according to a press release issued on Thursday. The meeting, held in a cordial and constructive atmosphere, focused on energy security, infrastructure development, and the exchange of advanced energy technologies between the two countries. Both sides discussed opportunities for enhanced collaboration in ensuring stable energy supply chains and promoting sustainable energy development in the face of global market volatility. Bangladesh Ambassador to the United States Tarik Md. Ariful Islam was also present at the meeting. A Bangladesh delegation led by the State Minister for Power, Energy and Mineral Resources is currently visiting the United States to explore further potential cooperation in the energy sector, officials said.  

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday said the government is implementing a wide range of projects on irrigation, flood management, riverbank protection, waterlogging mitigation, drainage improvement and salinity control as part of its sustainable water resources management strategy. He said special initiatives have been taken to restore at least one river in each division by removing illegal encroachments to maintain ecological balance. Under seven ongoing projects, measures are being implemented to clear encroachments and restore the natural flow of several rivers including Dhaleshwari, Louhajang, Alaikuri, Mogra, Salta, Sutang, Bakkhali and Barnai, the Minister said while placing budget in Parliament. The minister said a Water Quality Index (WQI) has been developed for rivers surrounding Dhaka, while an AI and deep learning-based real-time dashboard has been introduced to monitor groundwater levels, aiming to strengthen data-driven water governance. He further informed the House that the Ministry of Water Resources is implementing a nationwide programme titled “Excavation and Re-excavation of Rivers, Canals and Water Reservoirs,” under which 20,000 kilometres of canals, rivers and drainage channels are planned to be excavated over the next five years by relevant ministries. In FY 2026–27 alone, the ministry plans to excavate and re-excavate 680 kilometres of canals, irrigation canals and drainage channels. A GIS-based national canal database will also be developed under a separate project to identify and classify canals across the country. For flood protection, the government has set a target to construct, reconstruct and rehabilitate embankments and flood walls and improve river navigability over a total of 309 kilometres, while 484 kilometres of submerged shoals will be removed. Additionally, 292 kilometres of embankment and flood wall works are currently underway under a 180-day flood protection programme. He also highlighted impacts of upstream dams on the Teesta and Padma rivers, saying reduced water flow has affected agriculture, irrigation, fisheries and biodiversity in Bangladesh’s river basins. In this context, the “Padma Barrage (Phase-I)” project has been approved by the Executive Committee of the National Economic Council (ECNEC). The project, to be implemented from July 2026 to June 2033, includes construction of a 2.1-kilometre main barrage and a hydropower plant at Pangsha in Rajbari. Once completed, the project is expected to enable storage of 2,900 million cubic metres of water, prevent salinity intrusion in the Padma basin including the Sundarbans, support irrigation for 2.88 million hectares of land, and significantly boost agricultural and fish production. The government is also moving ahead with the “Comprehensive Management and Restoration of the Teesta River Project,” commonly known as the Teesta Master Plan, aimed at improving livelihoods in northern Bangladesh.

The Real Estate and Housing Association of Bangladesh (REHAB) has warned that new taxes and duties on construction materials in the proposed 2026-27 national budget will push up construction costs and ultimately raise flat prices, hitting ordinary homebuyers hardest. Reacting to the budget placed by Finance Minister Amir Khosru Mahmud Chowdhury in Parliament on Thursday afternoon, REHAB President Ali Afzal said the proposal fell well short of what the housing sector had expected. "We are still reviewing the budget in detail, but what we have seen so far shows no meaningful policy support or incentives for the housing sector," he said. "On the contrary, new taxes and duties on construction materials are likely to further increase construction costs. The imposition of a specific VAT on steel rods, in particular, will drive up costs and have a direct impact on flat prices and ordinary buyers," he said. Afzal said REHAB had long been pressing for a reduction in flat and land registration costs, arguing that lower registration fees will stimulate real transactions, attract investment to the sector and ultimately boost government revenue, a demand that went unaddressed in this year's budget. He underscored the sector's broader economic footprint, noting that housing is directly and indirectly linked to some 269 industries. A slowdown in real estate, he warned, will not only hurt developers and buyers but also ripple across industries, including steel, cement, ceramics, electrical goods, furniture and transport, putting the livelihoods of hundreds of thousands of workers at risk. "Revitalising the housing sector means revitalising the economy, generating employment and strengthening the foundation of sustainable growth," the REHAB president said, urging the government to give serious weight to their proposals in post-budget consultations. For the sector's long-term health, he called for lower registration costs, housing-friendly tax policies, access to long-term low-interest financing and a stable investment climate. REHAB said it views the budget's provision allowing voluntary disclosure of investment as a positive step, adding that the measure would be reviewed further.

A range of everyday products – from mid-range passenger cars and cigarettes to washing machines and imported paper – are likely to become more expensive as Finance Minister Amir Khosru Mahmud Chowdhury on Thursday proposed higher taxes, duties and regulatory charges on various imports and consumer goods in the national budget for fiscal year 2026-27. In a bid to curb the use of fossil fuel-powered vehicles and promote electric alternatives, the minister in his budget speech proposed raising the overall tax burden on imported internal combustion (IC) engine cars with 1200 to 1600cc capacity from the existing 132.36 percent to 155.88 percent, a significant jump that industry insiders say will push up showroom prices for popular mid-range models. Household washing machines will also face a new 20 percent supplementary duty under the proposal, a measure aimed at protecting domestic manufacturers. Similarly, a fresh 20 percent regulatory duty on imported gypsum boards and sheets is expected to raise construction and interior fitment costs. Smokers will face a steeper bill as well. The proposed budget sets new minimum retail prices for cigarettes across all tiers, Tk 62 per 10 sticks at the lowest tier, Tk 92 at the medium tier, Tk 160 at the high tier and Tk 210 at the premium tier. Printing and packaging costs could climb after the minister proposed raising import duties on greaseproof and glassine paper from 10 percent to 25 percent, along with a new 5 percent regulatory duty on both products. Import duties on PVC and PET resin, key raw materials for plastic manufacturing, are also proposed doubling from 5 percent to 10 percent, a move likely to ripple into a range of consumer goods. The import duty on bicycle freewheel components is proposed rising from 15 percent to 25 percent, with an additional 5 percent regulatory duty. Importers of copper tubes will face a duty increase from 15 percent to 25 percent, with copper wire imports attracting a new 10 percent regulatory duty, changes that could affect electrical installation costs. Transformers up to 1 KVA capacity will see import duties jump from 10 percent to 25 percent, plus a new 5 percent regulatory duty. Cold-rolled steel coils and sheets, widely used in manufacturing, will face an additional 10 percent regulatory duty to shield domestic producers, while maize starch imports would carry a higher duty of 25 percent, up from the current 15 percent. The finance minister framed many of the increases as protective measures for nascent domestic industries, while the fossil fuel vehicle surcharge was explicitly tied to an environmental rationale. The proposed budget sets total expenditure at Tk 9,38,000 crore, equivalent to 13.7 percent of GDP and Tk 1,48,000 crore higher than the previous fiscal's budget.  

Despite repeated calls from the business community to lower corporate taxes, the government has kept corporate tax rates unchanged in the proposed budget for fiscal year 2026-27, Finance Minister Amir Khosru Mahmud Chowdhury announced on Thursday while presenting the budget in parliament. "In the interest of policy continuity and to assure investors of a stable tax regime over the medium term, I propose keeping the existing corporate tax rates unchanged for the next tax year," the minister said. However, he indicated that the government remains committed to gradually reducing rates in the future by expanding the tax net and improving collection efficiency. The minister also outlined a set of taxpayer-friendly reforms accompanying the budget, including simplifying corporate tax compliance, enabling online income tax return filing and payment, reducing regulatory burden on businesses, expanding allowable business expenditures, and scrapping provisions that disallow costs when withholding tax is not deducted. He added that the process of selecting tax cases for audit and withholding tax verification would be made fully transparent and automated. Sector-wise Rates at a Glance Under existing rates, now carried forward, general companies defined under the income tax law face a flat rate of 27.5 percent. Listed companies that transfer more than 10 percent of paid-up capital through IPO are taxed at 22.5 percent, reducible to 20 percent upon meeting additional conditions. Publicly traded banks, insurance companies, and non-bank financial institutions face a 37.5 percent rate, while their non-listed counterparts pay 40 percent. Merchant banks are taxed at 27.5 percent. Tobacco product manufacturers, including cigarettes, bidis, zarda and gul, face the steepest burden at 45 percent plus a 2.5 percent surcharge. Publicly traded mobile phone operators with at least 10 percent IPO shareholding are taxed at 40 percent, while non-listed operators face a 45 percent rate. Co-operative societies are taxed at 20 percent. Private universities, medical, dental and engineering colleges, and IT-focused private institutions enjoy a concessional rate of 10 percent.  

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday announced that a new pay scale for government employees will be implemented in phases starting from July 1, citing the rising cost of living and inflationary pressures. He made the announcement while presenting the proposed national budget for the 2026-27 fiscal year in Parliament. The minister said government employees have been receiving salaries and allowances under the same pay structure for nearly eleven years. “During this period, the cost of living has increased significantly due to inflationary pressures. In recognition of this reality, the government is announcing the phased implementation of a new pay structure for public employees beginning on 1 July 2026.: He said merit, integrity, competence, experience, and professional qualifications will serve as the principal criteria for all appointments, transfers, and promotions across the public service in the government’s pursuit of building a “Meritocratic Bangladesh.” Khosru expressed firm belief that the ongoing reforms will extend far beyond the simplification of administrative procedures. “They will contribute to improving the overall business environment, attracting greater domestic and foreign investment, creating new momentum for enterprises of all sizes, strengthening the foundations of production and exports, and expanding employment opportunities across the economy.” An amount of Tk 89,380 crore has been earmarked for salaries and allowances of government officials and employees in the next fiscal year. The allocation is Tk 4,641 crore, or 5.47 percent, higher than the revised allocation of Tk 84,739 crore in the outgoing fiscal year. According to budget documents, the original allocation for government salaries and allowances in FY26 was Tk 84,114 crore, which was later revised upward to Tk 84,739 crore. The proposed allocation also marks a significant increase from the actual expenditure of Tk 69,423 crore recorded in FY25, indicating a rise of nearly Tk 20,000 crore in annual spending on government pay and benefits over two years. Of the total allocation, Tk 13,874 crore has been earmarked for officers’ salaries, up from Tk 12,927 crore in the revised budget for FY26, reflecting an increase of Tk 947 crore. For salaries of employees, Tk 30,671 crore has been allocated, compared to Tk 29,170 crore in the revised budget, registering an increase of Tk 1,501 crore. The largest share of the allocation will go to allowances, which have been proposed at Tk 44,835 crore, up from Tk 42,642 crore in the revised budget. The increase in this category alone amounts to Tk 2,193 crore. According to the experts, annual increases in salary and allowance allocations have become necessary due to rising living costs, inflation and the continued recruitment of personnel in public service. An analysis of the proposed budget shows that the government's total recurrent expenditure has been estimated at Tk 5.51 crore for FY27, with around 16.2 percent of the amount set aside for salaries and allowances of government employees.