Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Thursday announced a powerful combination of sweeping tax cuts and multi-crore structural allocations in the national budget for the 2026-27 fiscal year (FY27).
The comprehensive fiscal roadmap is specifically designed to expand the digital economy, strengthen the Information and Communication Technology (ICT) ecosystem, and aggressively boost local manufacturing of tech goods like computers, smartphones, and semiconductor components.
Unveiling the maiden national budget of the present BNP government at the Jatiya Sangsad this afternoon, the Finance Minister explained that these combined measures are part of a strategic master plan to raise the ICT sector’s contribution to the country's Gross Domestic Product (GDP) from its current 1–2 percent up to 10 percent within the next five years.
Sweeping Tax Relief for Startups, Freelancers, and Device Buyers
In a monumental shift for the digital workforce, the proposed budget extends full income tax exemptions—previously restricted exclusively to IT freelancing—to all categories of freelancing income.
Furthermore, all income generated from content creation has been made entirely tax-free to inject new growth into the creative digital economy.
Addressing new enterprises, the Finance Minister proposed a zero percent turnover tax rate for startups, innovative ventures, and technology-based ICT businesses.
To drastically drop the cost of tech hardware for consumers and corporations alike, the government has launched significant duty rollbacks:
Laptops, Desktops, Printers, and Monitors: Complete withdrawal of import duty, regulatory duty, supplementary duty, and VAT.
Hardware Advance Income Tax (AIT): Cut from 5 percent down to 2 percent on the import of computer printers, portable automatic data processing machines, flash memory devices, and computer monitors.
Solid State Drives (SSDs): The 5 percent import duty will remain, but all regulatory duty, supplementary duty, and VAT have been completely withdrawn.
Point of Sales (POS) Machines: Import duty slashed from 10 percent to 5 percent, and the 7.5 percent advance tax has been completely removed.
Massive Boost for Local Mobile Manufacturing and Semiconductors
To secure Bangladesh's position as a technology production hub, the budget cuts the Advance Income Tax (AIT) on 22 essential raw materials used in local mobile phone manufacturing down to just 1 percent.
Additionally, conditional VAT exemptions targeting the local manufacturing of mobile phones, computers, laptops, and printers have been extended until June 30, 2030.
Duty exemptions on raw materials and components for computers and digital devices have also been locked in until the same date.
In a forward-looking move for high-tech industrialization, raw materials imported for semiconductor chip design, testing and packaging will face a mere 1 percent import duty until June 30, 2031.
This sector will enjoy complete exemption from regulatory duty, supplementary duty, VAT, and advance tax to supercharge export-oriented growth.
On long-awaited telecom reforms, the government has fully withdrawn the BDT 300 SIM card tax to ensure mobile services are highly affordable at the grassroots level.
Simultaneously, the 20 percent withholding tax on revenue sharing, license fees, and other charges received by the Bangladesh Telecommunication Regulatory Commission (BTRC) has been removed, while the withholding tax rate on mobile network services has been trimmed from 12 percent to 10 percent.
Multi-Crore Financial Allocations for Tech, Science and Startups
To match these tax incentives with real infrastructure funding, Chowdhury proposed robust budgetary allocations for technological, telecom, and scientific state divisions:
Information and Communication Technology (ICT) Division: BDT 2,049 crore
Posts and Telecommunications Division: BDT 2,141 crore
Ministry of Science and Technology: BDT 18,115 crore (aimed at building a science-based nation and a technology-driven workforce)
The Finance Minister also proposed BDT 500 crore for a dedicated Startup Fund to encourage new IT entrepreneurs, featuring a specialized focus on backing young innovators and promoting women entrepreneurs.
To drive research, innovation, and the growth of the Blue Economy, a layout of BDT200 crore has been proposed, evenly split with BDT 100 crore for each area.
An initial allocation of BDT 300 crore was announced for the growth of the creative economy, which will be further reinforced by an additional BDT 500 crore mobilized from the Corporate Social Responsibility (CSR) sector of Bangladesh Bank.
SME Stimulus, Sports Talent and Massive Employment Targets
To support small businesses and ground-level entrepreneurship, the budget allocates BDT 2,000 crore in the SME sector for disbursing easy-term loans through IDCOL, BIFFL, and the SME Foundation.
This works alongside the central bank's newly announced "Stimulus Package 2026"—a massive BDT 60,000 crore package that funnels BDT 5,000 crore directly into the CMSME sector and BDT 3,000 crore toward export diversification.
Tying into these aggressive economic injections, the government has locked in a target of creating two lakh brand-new jobs every single year within the technology sector as a core pillar of its youth employment strategy.
Finally, shifting focus to youth development outside the office, the Finance Minister proposed BDT 200 crore for the "Notun Kuri Sports" programme, an initiative set up to provide vital sports scholarships to exceptionally talented students aged between 12 and 14.
According to official budget documents, this synchronized blend of fiscal relief and capital injection is designed to strengthen the digital economy and accelerate national advancement through innovation and deep youth engagement.
