Good news for 60 essential commodities in proposed budget

The government plans to reduce source tax on 60 essential agricultural and consumer products in the proposed FY2026-27 budget in a move aimed at easing the cost of living and containing inflation.

The proposal covers a wide range of daily necessities, including rice, lentils, edible oil, onions and other basic commodities that households regularly consume.

According to National Board of Revenue (NBR) sources, the government proposes to cut source tax rates on the selected products to 0.5% from existing rates of 5%, 2% or 1%, depending on the item.

Officials said the measure seeks to provide relief to consumers and fulfil the government’s commitment to reduce pressure on household expenses.

The products that will benefit from the tax reduction include paddy, rice, wheat, potatoes, onions, garlic, ginger, salt, sugar, edible oil and various types of seeds.

The proposal also extends tax relief to livestock, poultry and fish, sectors that play a key role in meeting the country’s protein demand.

Economists and market observers believe the lower tax burden could reduce supply costs at both wholesale and retail levels, creating room for lower consumer prices if businesses pass on the benefits.

A senior government official told the media that controlling inflation and stabilising commodity prices remain among the government’s top priorities

“The decision reflects our commitment to supporting consumers. Lower source taxes should help reduce excessive pricing and discourage artificial shortages in the market,” the official said.

He added that reduced taxes on seeds and agricultural products could encourage farmers to increase production. However, he stressed the need for strict market monitoring to ensure that traders do not maintain inflated prices through syndicate practices.

Finance Minister Amir Khasru Mahmud Chowdhury is scheduled to place the FY2026-27 national budget in the Jatiya Sangsad on Thursday afternoon.

The proposed budget has an outlay of Tk9.38 trillion, while the government expects to collect Tk6.95 trillion in revenue, leaving a deficit of Tk2.43 trillion.

To finance the gap, the government plans to mobilise Tk1.16 trillion from foreign loans and grants and Tk1.27 trillion from domestic sources, including Tk1.12 trillion from the banking system and Tk150 billion from savings certificates and other instruments.

Speaker Hafiz Uddin Ahmed will preside over the budget session in the presence of Prime Minister Tarique Rahman. The FY2026-27 budget will be the country’s 55th national budget and the first to be presented by Amir Khasru as finance minister.