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The government is likely to withdraw several controversial budget proposals, including the requirement of Tax Identification Number (TIN) for opening bank accounts, ahead of the passage of the Finance Bill in Parliament on Monday.
Officials said changes will be made in areas where proposed measures are expected to create undue pressure on the general public, while the final decisions on tax and duty-related proposals will be incorporated into the Finance Bill 2026 before parliamentary approval.
The proposed budget had initially made TIN mandatory for opening bank accounts, a move that triggered widespread debate after the budget announcement. Critics argued that the requirement would force individuals with no taxable income to submit tax returns, potentially discouraging people from using formal banking services.
In response to the criticism, the government is now moving to drop the provision from the final version of the budget.
Bangladesh Bank spokesperson Arif Hossain Khan said it would not be appropriate to adopt measures that discourage people from opening bank accounts, indicating concern from the financial sector over the proposed rule.
The budget had also proposed a combined tax burden of around 40 percent on imported raw cashew nuts by imposing 15 percent customs duty and 15 percent VAT. Industry stakeholders raised concerns that the move could hurt local processors, and officials said the duty structure may also be revised in the final bill.
Several other proposals are also under review, including source tax adjustments for advertising agencies, print and electronic media agencies, dividend tax on listed companies, readymade garment sector withholding tax, and import duties on raw materials.
Senior Research Fellow of the Centre for Policy Dialogue (CPD) Taufiqul Islam Khan said some proposals appeared inconsistent with market realities and suggested that policymakers should prioritise practical tax expansion rather than imposing burdens that may be easily passed on to consumers.
Officials said the government is focusing on expanding the tax net while aligning fiscal measures with economic realities, adding that although major changes are unlikely, some revisions will be made in selected tax and duty provisions before final approval of the budget.
TZ
