B Mirror Report:  The government is planning tax relief measures on essential commodities in the proposed 2026-27 national budget to ease pressure on consumers amid persistent inflation and rising living costs.

According to National Board of Revenue (NBR) sources, proposals include withdrawing the existing 1 percent advance tax on essential goods such as rice, lentils, edible oil, sugar, flour, onions and spices, as well as reducing the current 1 percent turnover tax to a more reasonable level.

At the same time, the government is considering higher taxes on luxury lifestyles and non-essential items, including firearms, luxury vehicles, helicopters and aircraft.

An NBR official said the upcoming budget aims to provide relief to ordinary people while placing a greater tax burden on affluent groups with stronger purchasing capacity.

“We are focusing on high-income groups. That is why additional attention has been given to luxury cars and firearms, while tax exemptions on essential commodities will continue to support the general public,” the official told local media.

The proposed budget also includes plans to bring battery-run rickshaws under the tax net for the first time. Under the proposal, battery-powered rickshaws operating in city corporation areas may face an annual tax of Tk 5,000, while those in municipalities could be charged Tk 2,000 per year.

Officials, however, acknowledged that identifying the number of such vehicles and collecting taxes from them would be a major challenge.

NBR officials said high inflation, dollar shortages, rising import costs and supply chain disruptions have continued to put pressure on the prices of essential commodities, severely affecting low and middle-income consumers.

They believe reducing tax pressure at the import and supply stages may help lower business costs and eventually ease retail prices, although market syndicates, transportation costs, hoarding and import dependency also play significant roles in price hikes.

In another major proposal, the government plans to increase taxes on firearm licence renewals. Currently, no advance income tax is imposed on renewing licences for pistols, revolvers or shotguns. The proposed budget may introduce advance income taxes ranging from Tk 30,000 to Tk 50,000 depending on the type of firearm.

At present, renewal fees stand at Tk 20,000 for pistols or revolvers and Tk 10,000 for shotguns or rifles, in addition to 15 percent VAT and 10 percent withholding tax.

According to Police Headquarters data, Bangladesh currently has around 53,702 valid firearm licences, including 48,283 issued to individuals. Officials estimate that increased renewal fees and taxes could generate more than Tk 100 crore annually in additional revenue.

The government is also considering higher advance income tax on luxury electric vehicles, while keeping taxes on regular vehicles unchanged based on engine capacity to maintain affordability for middle-income buyers.