AGP Executive Report
Last update: 6 hours agoBudget 2026-27: Bangladesh unveiled a Tk 9.38tn ($77bn) FY27 budget aiming for 6.5% growth and 7.5% inflation, with spending up 19% and development outlay rising 47% to Tk 3.16tn, while financing a Tk 2.43tn deficit largely through higher foreign borrowing (net foreign borrowing nearly Tk 1.1tn, +89%). Tax & retail impact: The government moved to pull millions of retailers into the tax net via a 0.20% advance income tax on goods supplied to retailers, shifting collection to upstream suppliers. Consumer relief vs inflation risk: Sweeping duty/VAT cuts target essentials, medicines and EVs, but economists and business groups warned implementation and revenue realism remain key. Healthcare push: Health allocation nearly doubles to Tk 69,409cr, alongside tax relief on dialysis/heart stents and cancer-drug inputs. Pharma self-reliance: Import duty withdrawal on 51 new API raw materials and zero-duty/VAT relief on additional cancer-drug ingredients. Industry & tech incentives: Extended tax concessions for semiconductors/chips to 2031 and a plan to make Bangladesh a leading electronics manufacturing hub in five years. Infrastructure & logistics: A 3,000km expressway plan, metro expansion for Dhaka, and steps to upgrade air cargo clearance and logistics hubs. Energy & environment: Solar power gets 0% tax rate until 2035, plus an AI groundwater monitoring dashboard and river/canal excavation targets. Business reaction: Major chambers welcomed tax/VAT/customs reforms but flagged risks from heavy bank borrowing and inflation pressure. Retail hours: Shops and malls can stay open until 9pm under the new schedule.
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