Common people have expressed sigh of relief as the next year budget has proposed major cut tax on essential commodities.
The government has proposed cutting source tax on 60 essential commodities, including baby food, rice and pulses in the budget for fiscal 2026-27 placed in the Jatiya Sangsad yesterday.
The budget proposed withdrawal of all taxes and VAT on import of dialysis filters for kidney patients.
As a result, the prices of essential commodities and medical expenses will come down. Such initiatives are great relief for the people of low and middle incoming group.
Finance Minister Amir Khosru Mahmud Chowdhury yesterday unveiled a record Taka 9.38 lakh crore national budget for 2026-27 fiscal outlining the BNP government’s comprehensive roadmap to build a humane economy.
The budget has announced reduction of source tax on 60 essential products, tax concessions on kidney dialysis filter dialysis, heart stent and eye lenses.
Also, an allocation of Taka 1,44,338 crore has been proposed for the social protection sector. It not only expands the scope of the existing allowance programme, but also proposed to add several new programmes including family-based assistance, cash incentives for farmers, honorariums for workers of religious institutions, ensuring social security for workers and special allowances for victims of the July uprising.
A number of economic analysts said in the budget special importance was given to make Bangladesh as a welfare-oriented state.
To control skyrocketing prices of daily commodities the government has proposed major tax cut on import and supply. Source tax has been reduced on import of rice, pulse, wheat, potato, onion, garlic, ginger, edible oil, sugar and salt.
Earlier, the source tax on these products was 2 to 5 percent. Now it is proposed to reduce to just 0.5 percent. As a result, the prices of the products in the market are expected to drop quickly.
Afsana Begum, a domestic worker from Azimpur area in the capital, said, "We do not understand the budget. We want the prices of goods to go down. We want to take to meals daily and live in peace. We are happy if the government do this.”
Kaya Akhter, a mother of two children, said she heard that the prices of baby food will be reduced, which is a great news for mothers like her.
“It was becoming difficult for us to provide nutritious food to children. Thanks to the government for thinking about it,” she said.
Cost of dialysis will be reduced by about Taka 800. Besides, tax exemption has been announced to reduce the price of heart stent by around Taka 20,000 and the price of eye lenses up to Taka 5,000.
The finance minister in the budget speech said the government wants to build discrimination free, humanitarian and welfare-based state through social security programmes.
With this aim, support has been increased for women's economic empowerment, senior citizens, disabled people, freedom fighters, families affected by the July uprising and various vulnerable groups.
For the fiscal 2026-27, he proposed to allocate Taka 1,44,338 crore to the social security sector.
When asked about the government's special attention to the social security sector, Dhaka University's Business Administration Institute Professor Md Mohiuddin said the government led, by Prime Minister Tarique Rahman, has been giving special importance to make Bangladesh a welfare-oriented state.
“A reflection of this is also visible in the next year budget. Allocation for social welfare sector will directly benefit the common people. We welcome such a decision of the government,” he said.
