Prime Minister Tarique Rahman unveiled a series of people-friendly fiscal proposals on Monday, calling for an upward adjustment of income tax thresholds and the withdrawal of several controversial provisions in the proposed national budget for the 2026–27 fiscal year.

Participating in the general discussion in Parliament, the Prime Minister advocated for providing greater financial relief to individual taxpayers, proposing that the tax-free income threshold be raised to BDT 400,000 for FY2026-27 and FY2027-28, BDT 450,000 for FY2028-29 and FY2029-30 and BDT 500,000 for the 2030–31 fiscal year.

Addressing the widespread public anxiety regarding the proposed provision for the disclosure of investments, the Prime Minister noted that while the measure was intended to address discrepancies between registration values and actual market prices, it had been widely misinterpreted.

"Unfortunately, some people have interpreted it as an opportunity to legalise undisclosed money," he stated, subsequently requesting the Finance and Planning Minister to withdraw the provision "respecting public opinion."

He further urged the withdrawal of mandates requiring Taxpayer Identification Number (TIN) certificates for most bank account openings and property-related registrations, citing the confusion these measures have caused among the public.

The Prime Minister’s reform agenda extended deep into the industrial and social sectors, where he proposed reducing the income tax rate for private universities from 10 percent to 5 percent.

He emphasized that this benefit should be contingent upon universities investing in research, establishing language laboratories, and providing tuition-free education for underprivileged students.

In a move to support marginalized communities, he called for an expansion of tax exemptions for indigenous populations in the three hill districts and the plains, requesting that salary income be exempted alongside business and agricultural income.

To bolster the shrimp farming and export sector, the Prime Minister proposed a comprehensive removal of customs duties, regulatory duties, supplementary duties, and VAT on essential inputs such as probiotics, vitamins, feed and machinery.

Focusing on the broader industrial landscape, the Prime Minister pushed for significant tax and duty concessions to lower production costs.

He requested the complete withdrawal of the 10 percent supplementary duty on imported honey used in pharmaceuticals, a reduction in import duties for PVC and PET resin from 10 percent to 5 percent, and the abolition of regulatory duties on materials such as cold-rolled sheets, chromium oxide, and refined copper wire.

Additionally, he proposed reducing the customs duty on unprocessed cashew nuts from 15 percent to 5 percent and extending duty concessions for manufacturers of LED lamps and prefabricated buildings through June 30, 2030.

Highlighting a landmark commitment to the next generation of innovators, he noted that the budget includes an unprecedented BDT 500 crore allocation for a startup fund, which he expects will drive job creation and empower young entrepreneurs.

To modernize the national revenue ecosystem, the Prime Minister proposed reducing the VAT on digital advertising services—spanning social media, search engines, and online marketplaces—from 15 percent to 5 percent.

He argued that this shift would incentivize businesses to move away from informal payment channels, thereby increasing government revenue through higher compliance.

His comprehensive reform package also included requests to review VAT rates on precious metals and jewellery, grant a full VAT exemption for revenue-sharing arrangements with the BTRC, and eliminate supplier-level VAT on fish supplies.

To encourage domestic automobile manufacturing, he proposed slashing VAT on locally produced double-cabin pickups and microbuses from 15 percent to 5 percent.

Concluding his address, he urged the Finance Minister to simplify VAT compliance by relaxing mandatory coefficient submission rules and requested that the government carefully consider the Opposition Leader's suggestion for duty-free bicycle imports.