The proposed FY2026–27 national budget has been described as broadly consumer-friendly, but its benefits will depend on effective implementation, the Consumers Association of Bangladesh (CAB) said on Saturday.
The consumer rights watchdog has welcomed key measures such as tax exemptions on 60 essential commodities and higher duties on tobacco products, calling them positive for both consumers and public health.
“The initiatives are commendable, but their success depends on whether the benefits reach consumers at the retail level,” SM Nazer Hossain, vice-president of CAB’s central committee, said in a statement on Saturday.
He stressed the need for strict monitoring to ensure that tax cuts translate into lower prices, warning that without oversight, gains could be captured by intermediaries instead of consumers.
Hossain said reduced duties on renewable energy equipment, along with higher allocations for health, education and social protection, could offer relief if implemented properly. He cautioned, however, that weak enforcement in the past has led to artificial shortages and price manipulation.
“Authorities must ensure that businesses comply with government decisions; otherwise, farmers and consumers will suffer,” he said.
He also welcomed moves to bring freelancers and content creators under a simplified tax framework, but noted that administrative complexity continues to deter many taxpayers. A simplified, package-based tax system for small businesses could improve compliance and boost revenue, he added.
The CAB leader described tax concessions for senior citizens as a positive step, though he questioned whether beneficiaries would be able to access these facilities in practice, citing concerns over transparency in service delivery.
He praised incentives for renewable energy, including tax benefits for solar power and reduced duties on electric vehicles, saying these could help ease power shortages, particularly in rural areas.
Emphasising governance, Hossain said the effectiveness of the budget will depend more on implementation than size.
“The key issue is not how big the budget is, but how well it is executed,” he said, calling for a simpler, more transparent and accountable revenue system.
He also underscored the need for neutrality and efficiency in administration, warning that partisan influence could undermine budget execution.
While expressing cautious optimism, Hossain noted gaps in the budget, including limited measures to curb rising prices, insufficient expansion of social safety nets, and a lack of focus on urban housing and public transport.
He also pointed to the unchanged tax-free income threshold and limited allocation for consumer awareness.
Calling for stronger institutional support, he urged increased funding for consumer protection agencies, including the Directorate of National Consumer Rights Protection, BSTI and food safety authorities, as well as strengthening the Trading Corporation of Bangladesh.
“With proper oversight and accountability, the budget’s welfare measures can still deliver meaningful benefits to the public,” he added.