Tech, taxes, and talent: Inside the new national budget

The government is set to unveil a wide-ranging set of measures in the new budget aimed at boosting human capital, expanding digital services, and supporting businesses, while also easing the cost of living and promoting green growth. 

Here are 12 measures in the new budget. 

Shifting the narrative from “brain drain” to “brain circulation”

The budget outlines strategies to connect highly educated and skilled Bangladeshi professionals living abroad with local education and research projects. The aim is to turn “brain drain” into “brain circulation” by involving non-resident Bangladeshi experts in national development.

Introduction of a third language

To prepare students for the global job market, the government will introduce a third language -- such as Arabic, Mandarin, Japanese, German, or Korean -- in secondary schools alongside Bangla and English.

‘One teacher, one tab’ initiative

As part of digital education reform, teachers will be provided with tablet computers to improve classroom management and support digital learning.

‘One citizen, one wallet’

To promote a cashless economy and financial inclusion, every eligible citizen will receive a secure digital wallet for personal and government transactions.

Employment exchanges in every district

To connect job seekers with employers, the government will set up Employment Exchanges in all districts and upazilas to support both local and international job opportunities.

Development of sports villages

To promote sports and youth development, the government plans to build modern “Sports Villages” with advanced training facilities in all divisional headquarters.

Turnover tax benefit for SMEs

To support small and medium enterprises, the tax-free turnover threshold will be raised from Tk 5 crore to Tk 10 crore, reducing the tax burden on small businesses.

Special incentives for women entrepreneurs

New women-owned businesses will receive a three-year tax holiday, along with access to low-interest, collateral-free loans to encourage women’s entrepreneurship.

Tax waivers on essential commodities

To reduce living costs, the government has removed source tax on 60 essential daily consumer goods.

Dialysis financial exemptions

To support kidney patients, VAT and advance income tax on imported dialysis filters will be removed. This is expected to reduce the cost of each dialysis session by about Tk 800.

Expansion of 5G services

The ICT sector is a priority, with a target to increase its GDP contribution to 10 percent in five years. The government also plans to provide 5G coverage to 90 percent of the population within two years.

Electric vehicle push

Import taxes on electric vehicles will be reduced significantly -- from 93 percent to as low as 64 percent for vehicles priced up to $25,000 -- to encourage greener transport.