News Flash
DHAKA, June 3, 2025 (BSS) - The Centre for Policy Dialogue (CPD) has acknowledged several positive initiatives in the proposed national budget for the fiscal year 2025-26 (FY26), saying that tax reliefs, allocations and incentives for various sectors, and higher tax on harmful activities are positive steps for the economy.
The private think tank appreciated the VAT exemptions on hybrid, electric vehicles (till 30 June 2030), locally produced e-bikes (till 30 June 2030) and ICU ambulances (till 30 June 2030).
The think tank came up with the remarks through analysing the proposed national budget, which was presented by Finance Adviser Dr Salehuddin Ahmed on Monday on behalf of the interim government.
The analysis was jointly prepared and presented by a CPD team led by CPD Executive Director Fahmida Khatun, with contributions from Distinguished Fellow Professor Mustafizur Rahman, Research Director Khondaker Golam Moazzem, and other senior and research fellows of the CPD.
In her presentation at a press conference at a city hotel, Fahmida Khatun said an environmental surcharge will be imposed on each additional motor vehicle owned by an individual (beyond the first), starting from Taka 25,000 for smaller engines (up to 1500cc) to Taka 3,50,000 for high capacity vehicles (above 3500cc).
She appreciated this measure towards discouraging luxury vehicle ownership and promoting environmental accountability.
She mentioned that a large number of projects (41 in total) are included in the budget for rural infrastructure development, including roads, bridges, and markets to boost local connectivity and rural livelihoods.
Terming the initiative as a positive move, she recommended increasing allocation for such projects.
She said completion of comparatively larger projects like BSCIC Chemical Industrial Park, Munshiganj should be prioritised.
Projects like BSCIC Food Processing Industrial Park, Thakurgaon, which are important projects in the respective region, should also be prioritised to complete within the deadline, she added.
She said Social Safety Net Programme (SSNP) recognises social insurance as a “contributory” and “progressive” measure.
She suggested allocating funds for piloting and scaling the National Social Insurance Scheme (NSIS).
Fahmida also recommended exempting the 5 percent VAT on English medium schools, saying the measure burdens middle-income families.
She also gave several education-related suggestions like conducting a need assessment to update beneficiary lists for stipend programmes, reinstating discontinued stipends in FY26, and increasing the overall allocation for stipends in the upcoming fiscal year.
Mustafizur Rahman laid emphasis on digitalization of revenue collection system to achieve the revenue collection target for the fiscal year 2025-26.
