The government is planning to introduce major tax exemptions and duty benefits to protect domestic industries in the upcoming national budget for the 2026-27 fiscal year.
As a result, the prices of locally manufactured goods are expected to decrease, while some import-dependent products may become costlier.
Sources revealed that the tenure of tax exemptions and duty concessions across various sectors might be extended to foster the growth of local industries, attract new investments, generate employment, and boost exports.
The electronic manufacturing sector, in particular, is being given the highest priority.
Under the proposed benefits, the prices of locally manufactured televisions, air conditioners, refrigerators, washing machines, mobile phones, laptops, computers, and monitors are likely to drop.
Concurrently, tax exemptions are also expected for the solar energy, electric vehicle (EV), and e-bike sectors.
Furthermore, the government plans to reduce taxes on raw materials for pharmaceuticals, cardiac stents, intraocular lenses, baby food, and various essential commodities, including rice, pulses, onions, and garlic. This move is expected to lower the retail prices of these items.
In a boost for content creators, a proposal to withdraw the existing Value Added Tax (VAT) and income tax levied on them is also under consideration.
Conversely, import duties and taxes on certain foreign goods are expected to rise as part of the strategy to protect domestic industries.
These items include imported cashew nuts, laptops, computer accessories, cigarette paper, foreign liquor, cosmetics, premium fish, and nicotine-based products. Consequently, the prices of these commodities are set to increase.
Additionally, the price of cigarettes is expected to go up. The government also plans to impose higher taxes on luxury imports and high-end food items.
According to relevant sources, these adjustments in tax and duty policies in the upcoming budget aim to make local industries more competitive and reduce the country's reliance on foreign products.
