Budget 2026-27 proposes VAT exemption for startups, content creators and freelancers

Budget 2026-27 proposes VAT exemption for startups, content creators and freelancers

The proposed budget for the 2026-27 fiscal year has announced multiple VAT exemptions for startups, content creators and freelancers to boost entrepreneurial activities and the country's growing digital economy.

Finance Minister Amir Khasru Mahmud Chowdhury presented the proposed budget in the National Parliament on Thursday, June 11.

The budget proposes a complete exemption from the 15 per cent VAT imposed on local startups.

Additionally, the budget recommends waiving the 15 per cent VAT on imported services and rental of offices or other establishments for startup companies.

These VAT benefits for the startup sector are proposed to remain in effect until June 30, 2035. This long-term policy is expected to encourage new entrepreneurs and investment.

Furthermore, a separate proposal calls for the complete withdrawal of the current 15 per cent VAT on services provided by content creators and freelancers.