The interim government's Advisory Council today gave its final approval to the Tk 7,90,000 crore national budget for the fiscal year 2025–26 (FY26) which was placed on June 2 in a pre-recorded broadcast. 

Now the budget for FY26 will come into effect on 1 July.

The budget got final clearance at the AC meeting with Chief Adviser Professor Muhammad Yunus in the chair.  

On June 2, the Finance Adviser presented the budget speech titled “Building an Equitable and Sustainable Economic System” through an unusual pre-recorded televised one since the Jatiya Sangsad is not in place now.

This was the country's 54th budget and the first of Professor Dr Muhammad Yunus led interim government. 

During the final approval, the government increased the allocation by Taka 10,000 crore to Taka 91,297 crore from the proposed amount of Taka 81,297 crore for the social safety net programme keeping the overall size of the budget intact.

 “The advisory council approved the national budget for FY26 with some adjustments to the proposed budget placed earlier this month. Notably, the provision allowing black money legalization through investment in flats and buildings has been scrapped,” said Finance Adviser Dr Salehuddin Ahmed at a press conference at the Finance Ministry conference room in the city. 

He said the budget for the coming fiscal eyed a 5.5 percent GDP growth while containing the inflation within 6.50 percent. 

“Out of the Taka 7,90,000 crore budget, the government has allocated Taka 560,000 crore for non-development sector while Taka 2,30,000 crore has been allocated for the Annual Development Programme (ADP),” he added.

The budget deficit stands at Tk 226,000 crore, down from Tk 256,000 crore in the current fiscal year, representing 3.62 percent of the GDP, he added.   

Among others, Finance Division Secretary Dr Md Khairuzzaman and National Board of Revenue (NBR) Chairman Abdur Rahman Khan also spoke on the occasion.

Khairuzzaman said the previously announced special benefits for government officials or employees have been increased to a minimum of Taka 1,500 for employed persons and a minimum of Taka 750 for pensioners. 

In his speech, Abdur Rahman Khan said the provision regarding investment in buildings or apartments by paying special tax has been abolished.

 In the case of publicly traded companies those having at least 10 percent paid-up capital have been transferred through IPO (Initial Public Offering) or Direct Listing, he said, the government has imposed 22.5 percent tax on the companies. 
But, if all types of income are made through bank transfer in the considered income year, the tax rate will be 20 percent, he added.

In the case of all other publicly traded companies, there will be 27.5 percent tax, he said. 

However, he said, if all types of income are made through bank transfer in the considered income year, the tax rate will be 25 percent.

The NBR chief mentioned that the tax rate for private universities, private medical colleges, private dental colleges, private engineering colleges or private colleges engaged in teaching only in information technology has been reduced to 10 percent instead of 15 percent.

He said the existing tax deduction rates for tax collection from property transfer have been reduced to 5 percent, 3 percent and 2 percent respectively instead of 8 percent, 6 percent and 4 percent.

He said advance tax on the import of refined petroleum products has been fixed at 2 percent instead of 7.5 percent and Value Added Tax (VAT) has been exempted at the production stage of cotton produced through the recycling process from jute.

 VAT exemption has been provided on the rent of premises and establishments of beauty parlors run by women entrepreneurs, he added.

He said VAT exemption has also been provided at the import stage of ball points and advance tax exemption has been provided for the import of heart rings and eye lenses.

 In order to introduce a customs system based on invoice value instead of tariff value for the import of all types of petroleum products, Abdur Rahman Khan said the 5 percent import duty fixed for crude petroleum products in FY25 has been reduced to 3 percent and the 10 percent import duty fixed for other cases has been reduced to 6 percent.

In order to make equipment related to solar energy production more accessible, he said the import duty on Solar Inverter has been reduced from 10 percent to 1 percent.

He said 10 more items have been added to the notification regarding the import of medical equipment and materials by hospitals under concessional facilities issued in the budget for the fiscal year 2025-26, as a result, medical services will be more accessible to the people.

 The import duty on Technically Specified Natural Rubber, one of the raw materials for making tires, has been reduced from 10 percent to 5 percent for the production of quality tires in the country, he added.