B Mirror Report: Despite tax reductions on 63 essential commodities in the FY2026–27 national budget, consumers have yet to see any meaningful decline in retail prices, the Consumers Association of Bangladesh (CAB) has alleged.

In a statement issued on Sunday, CAB Vice-President SM Nazer Hossain said the government’s tax relief measures have not translated into lower prices for key daily necessities such as rice and soybean oil. Instead, prices of some products are reportedly being pushed higher.

Under the new budget, source tax on 63 essential itemsvincluding paddy, rice, wheat, flour, livestock, poultry, fish, onions, garlic, ginger, salt, sugar, edible oil and seeds has been reduced from 5%, 2% and 1% to 0.5%. The source tax on all edible oils has also been cut from 1% to 0.5%.

According to CAB, the government’s objective was to reduce import and distribution costs so that consumers would benefit from lower retail prices. However, the expected impact has yet to materialize.

Nazer Hossain said CAB had welcomed the proposed budget, hoping the tax cuts would ease the cost of living. However, traders have argued that existing stocks were imported before the tax reductions at higher costs and that prices may decline only after new consignments arrive.

He also criticized what he described as a “double standard” among traders, noting that prices of goods subject to higher duties were increased immediately, even when those products had been imported at lower costs.

CAB attributed the continued market volatility to weak monitoring by regulatory authorities. It alleged that instead of taking a firm stance against dishonest traders, the government has maintained a business-friendly approach, while local administrations have often been lenient in enforcing market regulations.

The consumer rights body also pointed out that although the budget removed the 5% regulatory duty on imported spices and dates, consumers have not yet benefited. Prices of cinnamon, cloves, mace, poppy seeds, cashew nuts and almonds have reportedly increased, while date prices remain largely unchanged despite the tax relief.

CAB warned that if consumers fail to benefit from the tax concessions, the government’s decision to sacrifice revenue through tax cuts will not achieve its intended purpose. It added that the lack of visible price reductions has raised questions about the effectiveness of the government’s promise of a “people-friendly budget” aimed at easing the burden on ordinary citizens.