PM calls for withdrawal of black money legalisation provision in proposed budget
Participating in the general discussion on the proposed budget in the National Parliament, the prime minister urged the finance and planning minister to remove the provision.
Highlights:
- PM urges withdrawal of black money legalisation provision
- Calls for higher tax-free income threshold
- Seeks rollback of TIN requirement for bank accounts
- Proposes tax cuts for private universities and key industries
- Urges lower VAT to boost digital economy and manufacturing
Prime Minister Tarique Rahman today (29 June) called for the withdrawal of the provision in the proposed budget for the 2026-27 fiscal year that would allow undisclosed money to be legalised, saying the measure had drawn public criticism.
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Participating in the general discussion on the proposed budget in the National Parliament, the prime minister urged the finance and planning minister to remove the provision.
He also placed a series of proposals relating to taxation, tariffs and investment incentives.
Among the proposals were raising the tax-free income threshold for individual taxpayers, withdrawing the requirement for a Taxpayer Identification Number (TIN) to open bank accounts and register property, and reducing the tax rate for private universities.
The prime minister also proposed expanding tax-free facilities for ethnic minority communities.
In addition, he called for reducing tariffs and taxes on the import of raw materials used in the shrimp sector, manufacturing industries and other local industries.
Tax-free income limit, TIN requirements
The prime minister said the proposed budget set the tax-free income threshold at Tk375,000 for the 2026-27 and 2027-28 assessment years, Tk400,000 for the 2028-29 and 2029-30 assessment years, and Tk450,000 for the 2030-31 assessment year.
However, he proposed raising the limits further to Tk400,000 for the 2026-27 and 2027-28 assessment years, Tk450,000 for the 2028-29 and 2029-30 assessment years, and Tk500,000 for the 2030-31 assessment year.
Explaining the rationale behind the proposed black money legalisation provision, the prime minister said it had been included to reduce difficulties faced by taxpayers when declaring the actual purchase price of land.
He noted that land is often registered at mouza rates rather than actual market values, creating complications for taxpayers seeking to disclose the true purchase price.
However, he said feedback from the media, social media, members of parliament and other stakeholders indicated that many people viewed the provision as an opportunity to legalise undisclosed money.
Respecting public opinion, he urged the finance and planning minister to withdraw the proposal.
The prime minister also said the proposed budget sought to make TIN submission mandatory for opening bank accounts, except in a few cases including students, as well as for registering partition deeds and completing property mutation.
Noting public concern and confusion over the measures, he called for both proposals to be withdrawn.
Private universities, ethnic minorities
To support higher education, the prime minister proposed reducing the tax rate for private universities from the current 10% to 5%.
He said universities receiving the benefit should strengthen research and development activities, establish language-learning laboratories to help students become proficient in multiple languages, and expand opportunities for poor and meritorious students to study without tuition fees.
He also proposed expanding tax benefits for ethnic minority communities.
At present, the proposed budget includes tax exemptions on certain incomes of ethnic minorities living in the hill districts.
Tarique said the exemption should be broadened to cover business, agricultural and salary income of all ethnic minority communities in both hill and plain areas.
He noted that ethnic minority communities also live in districts including Dinajpur, Mymensingh and Netrokona, and therefore the benefit should not be limited to the hill regions.
Support for shrimp and manufacturing industries
The prime minister called for the complete withdrawal of import duty, regulatory duty, supplementary duty and VAT on aqua feed, feed additives, probiotics, vitamins, minerals and necessary machinery used in the export-oriented shrimp sector.
According to him, such measures would improve the competitiveness of the country's shrimp industry and help increase exports.
He also proposed additional concessional facilities for manufacturing industries importing raw materials.
Noting that honey is used as a raw material in several industries, including pharmaceuticals, he called for the withdrawal of the existing 10% supplementary duty on honey imports.
He further proposed reducing the planned 10% import duty on PVC and PET resin to 5%.
In addition, he recommended the withdrawal of the 10% regulatory duty on cold rolled sheets used in fire door manufacturing, the regulatory duty on flat rolled plated or chromium oxide-coated products used in manufacturing industries, and the associated advance tax.
To support the electric wire manufacturing sector, he called for the complete withdrawal of the 10% regulatory duty on refined copper imports. He also proposed reducing the planned 15% customs duty on crude cashew nut imports to 5%.
The prime minister further proposed extending the existing concessional import facility for raw materials used by LED lamp manufacturers until 30 June 2030. He said the same facility should be maintained for prefabricated building manufacturers until the same date.
Startups, digital economy and VAT reforms
The prime minister described the proposed Tk500 crore fund for startups and freelancers as a landmark initiative.
He said it was the first fund of its kind in the country's history and would help create new entrepreneurs while generating employment opportunities for young people through successful startups.
To encourage the digital economy, he proposed reducing the existing 15% VAT on advertising through social media platforms, OTT services, search engines, online marketplaces and other digital media to 5%.
He said the current VAT rate encourages some businesses to make payments through informal channels rather than the banking system, resulting in revenue losses and reduced transparency.
The prime minister also urged consideration of additional measures to create a more business-friendly VAT structure.
He proposed reviewing existing VAT and tax rates on gold, gold ornaments, platinum, diamonds and silver ornaments and drew the finance minister's attention to the issue.
He further called for a full exemption from the 15% VAT imposed on revenue-sharing payments to the Bangladesh Telecommunication Regulatory Commission (BTRC).
In addition, he proposed withdrawing the 10% VAT imposed at the supplier level on the supply of all types of fish.
Governance, judiciary and administrative reform
The prime minister called for reducing the existing 15% VAT to 5% on the local production of double-cabin pickups and microbuses to support the domestic automobile industry.
He also proposed easing the mandatory submission of coefficients in certain cases to make compliance with the standard VAT rate easier.
Concluding his speech, he said the true strength of a state lies not only in its wealth but also in good governance, justice, accountability and public trust.
Alongside economic reforms, establishing good governance at every level of the state is essential for sustainable development, he said.
Highlighting the importance of judicial independence in ensuring democracy, the rule of law and human rights, the prime minister said he had requested an additional Tk100 crore allocation for the Supreme Court and Tk500 crore for the Ministry of Law to address judges' housing shortages, support research activities and improve court infrastructure.
He also stressed the need to improve efficiency in public administration, saying that accountability, a proper salary structure, modern training and a work environment free from political interference are necessary to deliver better public services.
Tarique said the government was not seeking to hide the country's problems. He noted that the economy had been affected by corruption, irregularities and economic mismanagement over the past one and a half decades, and said the government was working to overcome those challenges and meet public expectations.
He added that Bangladesh's people are industrious, its youth talented, its farmers productive, its expatriates patriotic and its entrepreneurs full of potential, expressing confidence in the country's ability to recover.
Call for unity and democratic commitment
Calling on all members of parliament, the prime minister said the budget should be viewed not simply as the government's budget but as a budget for rebuilding the nation.
He said he agreed with remarks made by the leader of the opposition and stressed that, despite political differences, all sides should work together to restore economic stability, ease public hardship, bring discipline to the financial sector, rebuild investor confidence, create opportunities for farmers, youth, women, expatriates and entrepreneurs, and strengthen democratic institutions.
He said it should be a collective commitment that fascism or autocracy would never again take root in the country and that Bangladesh would never become a subservient state.
Describing budget preparation as a demanding task, the prime minister thanked the finance and planning minister as well as officials and employees of the Finance Division, National Board of Revenue, Economic Relations Division, Financial Institutions Division, Ministry of Planning, Bangladesh Bank and other relevant ministries and divisions for their contributions.
He also expressed gratitude to the National Parliament Secretariat, BG Press and media personnel covering the budget session for their support in the budget preparation and parliamentary process.
Future reforms
The prime minister said public expectations in "post-fascist Bangladesh" are now very high. People elected members of parliament to establish democracy, human rights, the rule of law, justice and good governance, he said.
He noted that many political leaders and activists had sacrificed their lives, suffered injuries, faced cases and attacks, and lost everything in the struggle for democracy.
Reflecting on his own experience, he said that after spending a long period abroad, he found that many of his fellow political colleagues were no longer alive when he returned. He added that many veteran opposition leaders were also no longer alive. Paying tribute to sacrifices on all sides, he said the best way to honour them was through responsible politics.
Tarique said that, with the July Charter as a guiding framework, consensus could be built both inside and outside parliament on national issues, including constitutional reform. He urged political parties to work together to build public opinion on important national matters and pursue reform programmes responsibly.
Addressing the nation, he said the current government and parliament belong to the people. The government, he said, gives the highest priority to public aspirations, understands people's hardships and regards protecting public wealth as a sacred responsibility.
He said the government aims to build a Bangladesh where development is based on justice, the economy is inclusive, the state is accountable and every citizen can live a safe, dignified and prosperous life.
The prime minister concluded by thanking the speaker for the opportunity to address the budget session and reiterated his call for collective efforts to advance the country's welfare.
