Tax cut proposed on 60 essential items to reduce living costs

The government has proposed reducing source tax on 60 essential products to lower the cost of living for ordinary people and bring relief to the market for daily necessities.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury made the announcement while presenting the national budget for the 2026-27 fiscal year in the National Parliament on Thursday, June 11.

In his budget speech, he said source tax would be reduced on 60 essential items. Basic agricultural and consumer goods such as paddy, rice, wheat, potatoes, cattle, poultry, fish, onions, garlic, ginger, salt, sugar, edible oil and seeds will see source tax reduced from 5 per cent, 2 per cent and 1 per cent to 0.5 per cent.

The finance minister said the government has taken this initiative to ease the pressure created on ordinary people by rising commodity prices in recent years. He expressed hope that this step, taken as part of an electoral pledge, would bring relief to public life.

The proposed budget for 2026-27, presented in parliament, totals Tk 9.38 lakh crore. It is the country's 55th national budget and the first budget of the current government's term. The revenue collection target has been set at Tk 6.95 lakh crore. The government plans to finance the remaining deficit from domestic and external sources.