The proposed national budget for the 2026-27 fiscal year is expected to be passed by Parliament on Tuesday with no major changes to its overall size, fiscal framework or macroeconomic targets. However, the government is likely to revise several tax and duty proposals following widespread criticism from lawmakers, businesses and economists.
The Finance Bill is scheduled for passage on Monday, finalising tax and customs measures before the budget takes effect on July 1, according to officials from the Finance Ministry, the National Board of Revenue (NBR) and the Parliament Secretariat.
The proposed budget totals Tk 938,000 crore, with a revenue collection target of Tk 695,000 crore, leaving a projected deficit of Tk 243,000 crore. The government plans to finance the shortfall through Tk 116,000 crore in foreign loans and grants and Tk 127,000 crore from domestic sources, including Tk 112,000 crore from the banking sector and Tk 15,000 crore from savings certificates and other
sources.
One of the most contentious proposals requires individuals to submit a Tax Identification Number (TIN) certificate to open a bank account. The measure has faced strong criticism both inside and outside Parliament, amid concerns that it could discourage low-income people, day labourers, small traders and informal-sector workers from using formal banking services.
As obtaining a TIN would also require annual tax return submissions, even for many low-income earners, the government is now considering relaxing or withdrawing the requirement before the Finance Bill is approved.
Former Finance Secretary Mahbub Ahmed said broadening the tax base is essential but warned that revenue measures should not create unnecessary barriers for ordinary citizens. Making TIN mandatory for opening bank accounts could push many people out of the formal banking system. The government should reconsider the decision, he said.
Another controversial proposal involves dividend taxation. The budget proposed replacing the existing 20 percent tax on dividend income from listed companies with taxation at the applicable corporate income tax rate, ranging from 12.5 percent to 27.5 percent depending on the company.
Following strong objections from investors and market participants, the government is now expected to retain the existing 20 percent dividend tax. The NBR is also reviewing the 10 percent penal tax imposed on retained earnings when listed companies fail to distribute at least 30 percent of their net profits as dividends.
An NBR official, speaking on condition of anonymity, said amendments to several Finance Bill provisions, including the TIN requirement, are under consideration.
No final decision has yet been taken. Once the government reaches a decision, the necessary amendments will be incorporated into the Finance Bill before it is passed by Parliament, the official said. To provide relief from persistent inflation, the government has already reduced taxes on several essential commodities and is considering further limited cuts in import duties on selected daily necessities.
Other proposals under review include adjustments to withholding tax rates in selected sectors, expanded tax incentives for small and medium-sized enterprises (SMEs), revisions to supplementary and regulatory duties on certain imports, clearer tax benefits for startups and technology firms, retention of selected tax holidays for export-oriented industries and simplification of tax procedures for individual taxpayers.
Business groups have urged the government to lower taxes on industrial raw materials and ensure long-term policy stability to encourage private investment.
The ministry said the budget is designed to move Bangladesh from economic recovery toward sustainable growth by strengthening revenue administration, expanding social safety programmes, investing in infrastructure and increasing spending on human resource development. Officials claimed, however, that the budget's success will depend on stronger revenue mobilisation, effective implementation and continued efforts to contain inflation.
During the parliamentary debate, lawmakers from both the treasury and opposition benches focused on inflation, employment, agriculture and social protection. Many MPs argued that while inflation control has been identified as a key objective, the budget should provide clearer measures to improve market management.
Parliamentarians also called for larger allocations to stabilise food prices, boost agricultural production and strengthen support for low-income households. Discussions further covered the phased implementation of the Ninth Pay Scale, increased spending on education and healthcare, and measures to enhance the capacity of local government institutions.
Economists and business leaders have also questioned the feasibility of achieving the ambitious revenue target and called for stronger measures to stimulate private investment, generate employment, reform the banking sector and improve the effectiveness of social safety programmes.
M Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the budget contains several positive initiatives but requires more concrete policy measures to boost investment and employment. The most important priority should be strengthening the private sector. Sustainable economic growth will not be possible without creating jobs. The cost of doing business should be reduced, regulatory complexities minimised and the tax system made simpler, he said.
Finance Minister Amir Khosru Mahmud Chowdhury presented the proposed budget in Parliament on June 11, marking the first budget of the government led by Prime Minister Tarique Rahman. The budget is expected to be approved by voice vote on June 30 before coming into effect on July 1.
