Source tax on essential goods set to be reduced to uniform 0.5% to ease inflation pressure
The existing source tax rates of 5%, 2% and 1% will be reduced to a uniform 0.5%.
To reduce inflation and the cost of living, the government has taken an initiative to cut source tax on essential and agricultural products in the upcoming 2026–27 budget.
The new tax rate will come into effect after budget approval.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury is set to table the national budget for FY2026-27 in the House tomorrow afternoon (11 June).
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According to the proposal, the existing source tax rates of 5%, 2% and 1% will be reduced to a uniform 0.5%.
Sources at the National Board of Revenue (NBR) said nearly 60 essential agricultural and consumer goods will come under this benefit.
These include rice, paddy, wheat, potatoes, livestock, ducks and chickens, fish, onions, garlic, ginger, salt, sugar, edible oil, seeds, and other daily necessities.
NBR sources said in recent years, high inflation and rising commodity prices have significantly increased the cost of living for ordinary people.
The decision to reduce source tax has been made to keep supply chains stable and ease price pressure on consumers.
