Finance Minister Amir Khasru Mahmud Chowdhury on Thursday unveiled a Tk 9.38 trillion national budget for fiscal year 2026–27, proposing major changes to import duties, value-added tax (VAT) and customs valuations.
The first budget of the BNP government’s current term seeks to protect domestic industries, discourage the use of emission-intensive vehicles and reduce inflationary pressures by lowering taxes on technology products, healthcare items and essential commodities.
What Will Cost More
To support local industries and discourage the consumption of products considered harmful to public health and the environment, the government has increased duties and customs valuations on several items.
Tobacco and Vehicles
Cigarettes and Nicotine Products: Minimum retail prices for a 10-stick cigarette pack have been revised to Tk 62 for the low tier, Tk 92 for the medium tier, Tk 160 for the high tier and Tk 210 for the premium tier. The supplementary duty on nicotine pouches and granules has been increased from 300 percent to 350 percent.
Fuel-Powered Cars: The total tax burden on imported internal combustion engine (ICE) vehicles with engine capacities between 1,200cc and 1,600cc will rise from 132.36 percent to about 156 percent, as part of efforts to discourage fossil-fuel-powered transportation.
Imported Food and Agricultural Products
Cashew Nuts: Import duties on raw and processed cashew nuts have been raised to 25 percent from 1 percent and 5 percent respectively. However, local processors importing raw cashews will be subject to a reduced rate of 15 percent.
Pangasius Fillets and Honey: A new 20 percent supplementary duty has been imposed on imported pangasius fish fillets to protect local processors. The minimum customs value for imported natural honey has been increased by $2 to $7 per unit.
Betel Nuts and Confectionery: The assessable value of imported betel nuts has been increased by $0.25 per unit. Customs valuations have also been raised for imported coffee, sugar confectionery and packaged food products.
Industry, Home Appliances and Cosmetics
Washing Machines and Household Goods: A new 20 percent supplementary duty has been imposed on imported household washing machines. Higher duty rates will also apply to imported microwave ovens, toys, foam products, tiles and sanitary ware.
Bicycles: The import duty on bicycle freewheel components has been increased from 15 percent to 25 percent, while an additional 5 percent supplementary duty has been imposed.
Construction Materials and LPG Cylinders: VAT on raw materials used in steel rod production has been increased, which may raise construction costs. Imported composite LPG cylinders will now be subject to VAT at the import stage.
Cosmetics: Imported lip liners and lip gels are expected to become more expensive due to higher customs valuations.
What Will Cost Less
The proposed budget offers tax relief on a range of essential commodities, technology products, renewable energy equipment and healthcare-related items.
Essential Food Items and Household Staples
Sixty Essential Commodities: The source tax on 60 key commodities—including rice, paddy, wheat, potatoes, onions, garlic, ginger, salt, sugar, fish, poultry, livestock, edible oil and seeds—has been reduced to a uniform 0.5 percent from previous rates ranging between 1 percent and 5 percent.
Spices and Dates: The 5 percent regulatory duty on imported spices such as cinnamon, cumin, cardamom, cloves, coriander and black pepper has been withdrawn. The same duty on imported dates has also been abolished.
Baby Food: The import duty on raw materials used in baby food production has been reduced from 15 percent to 10 percent.
Technology and Green Energy
Computers and Laptops: Import duties, regulatory duties, supplementary duties and VAT on laptops, desktop computers, monitors, printers and servers have been withdrawn.
Electric Vehicles (EVs): The tax burden on EVs valued at up to $25,000 has been reduced from 93 percent to 64 percent, while the rate for EVs worth up to $50,000 has been lowered to 80 percent. Tax concessions have also been extended to plug-in hybrid electric vehicles (PHEVs), EV charging equipment and BRTA registration fees.
Solar Equipment: Import conditions have been eased for solar power components and point-of-sale (POS) devices.
Healthcare and Other Items
Kidney Dialysis: The 15 percent VAT and 5 percent advance income tax on imported dialysis filters have been waived. According to the finance minister, this could reduce the cost of each dialysis session by up to Tk 800.
Medicines: Tax concessions have been granted on pharmaceutical raw materials, including exemptions for nine specific ingredients used in the manufacture of cancer drugs.
Gold and Jewellery: The source tax on gold supply has been reduced from 5 percent to 0.5 percent, lowering the tax burden to Tk 2,500 per bhori on gold valued at Tk 250,000, compared with Tk 12,500 previously.
Musical Instruments and Film Equipment: The 5 percent regulatory duty on pianos, guitars, violins and other musical instruments has been abolished. Import duties on cinema cameras, projectors and related spare parts have been reduced from 15 percent to 5 percent.
Personal Care Products: Unlike lip liners and lip gels, imported lipsticks and face wash products are expected to become cheaper due to changes in the tax structure.