The National Board of Revenue has declared a set of reforms and adjustments in the national budget for the financial year 2025-26, with some significant changes in income tax, VAT, and customs duties.
According to a statement issued by the finance ministry on Sunday, the import duty on crude petroleum has been reduced from 5 per cent to 3 per cent to implement invoice-based customs valuation instead of tariff-based valuation.
Moreover, the rate for other petroleum products has also been slashed from 10 per cent to 6 per cent.
To promote renewable energy, the NBR also reduced the import duty on solar inverters to 1 per cent from the existing 10 per cent.
Moreover, the provision allowing individuals to legitimise investments in buildings or apartments by paying a聽special flat-rate tax聽has been聽abolished.
To make healthcare services more accessible, an additional 10 items have been added to the list of medical instruments and supplies that hospitals can import under concessional terms.
To promote domestic production of high-quality tyres, the import duty on Technically Specified Natural Rubber has been reduced to 5 per cent from 10 per cent.
According to the press release, publicly traded companies that have offloaded at least 10 per cent of their paid-up capital through IPO or direct listing,聽would now be subject to a聽22.5 per cent corporate tax rate.
However, if all transactions during the assessment year were conducted聽through bank transfer, the tax rate would be reduced to聽20 per cent.
For聽all other publicly traded companies, the standard corporate tax rate has been set at聽27.5 per cent, but would be lowered to聽25 per聽cent if聽all income was transacted through the banking channel, the finance ministry added.
The NBR also reduced the聽corporate tax rate for private universities, medical colleges, dental colleges, engineering colleges, and private colleges offering only IT education聽to 10 per cent from聽15 per cent.
Moreover, the聽withholding tax on property transfers聽has also been聽revised downward聽to 5 per cent, 3 per cent, and 2 per cent from the previous rates of聽8 per cent, 6 per cent, and 4 per cent,聽respectively.
The NBR also exempted VAT at the production stage for cotton produced through the recycling of garment waste (jhut).
Moreover, the rent for space and premises used by women-led beauty parlors would now enjoy a VAT exemption, and the imports of ballpoint pens would also be exempted from VAT.
The NBR granted a waiver of advance income tax on the import of heart stents and eye lenses.聽
Earlier on Sunday morning, the interim government鈥簊 Advisory Council gave its final approval to the Tk聽7,90,000 crore national budget for FY26. The budget for FY26 will take effect on July 1.
The budget got final clearance at the AC meeting with chief adviser Professor Muhammad Yunus in the chair. 聽
On June 2, finance adviser Salehuddin Ahmed presented the budget speech titled 鈥楤uilding an Equitable and Sustainable Economic System鈥� through an unusual pre-recorded televised one since the Jatiya Sangsad is not in place now.
This was the country鈥簊 54th budget and the first of Professor Muhammad Yunus-led interim government.
