The BNP-led government, which came to power after the February 12 election, is preparing to unveil one of Bangladesh’s most ambitious national budgets, with proposed measures expected to offer major incentives for solar businesses, freelancers and digital content creators, alongside expanded postal modernization, e-commerce logistics and digital connectivity.
The proposed Tk9.38 lakh crore budget for fiscal year 2026–27 is scheduled to be presented in parliament tomorrow by Finance Minister Amir Khasru Mahmud Chowdhury. It is expected to prioritize inflation control, employment generation, digital transformation and renewable energy expansion.
Officials at the National Board of Revenue (NBR) and the Finance Ministry said the budget may include significant duty cuts on solar power equipment, long-term income tax exemptions for solar energy producers, withdrawal of withholding tax on freelance and creator income, and an extension of VAT exemption on Metro Rail fares.
At the same time, the government is also moving to strengthen e-commerce, logistics and public service delivery through postal reforms, while mobile connectivity continues to expand nationwide.
Among the most significant proposals under consideration are large-scale tax and duty reductions on solar equipment imports aimed at accelerating renewable energy adoption and reducing dependence on fossil fuels.
Government sources said authorities are discussing reducing the overall tax burden on some solar products from the existing 50%–80% range to below 15%.
Currently, import duties include around 27% on solar panels, approximately 29% on inverters, and nearly 89% on PV-DG controllers, along with high taxes on DC cables, battery storage systems, mounting structures and related accessories.
Industry stakeholders say the sector remains costly due to heavy import dependence.
An NBR official, requesting anonymity, said the incentives are being considered to ensure energy security, reduce carbon emissions and attract private investment. Bangladesh aims to generate 10,000 MW of solar power by 2030.
Officials also said around 11.74 lakh kW (1,174 MW) of solar projects are currently under implementation.
The government is also considering granting income tax exemptions to solar power generation and supply companies until June 30, 2035, under Section 76 of the Income Tax Act 2023. If approved, the facility would take effect from July 1, 2026.
To qualify, companies would need to build solar facilities through self-financing and management, obtain approval under the Net Metering Guideline 2025, and comply with Power Purchase Agreement (PPA) provisions.
Additionally, businesses using solar electricity may receive tax rebates equivalent to 5% of electricity bills against payable income tax.
However, sector leaders say structural reforms in customs valuation remain necessary.
SM Munir, secretary of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said reducing duties alone would not be sufficient. “Solar products are still assessed based on weight rather than invoice value, resulting in excessive costs,” he said.
Prof Dr M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), said renewable energy has long faced discrimination. “VAT and taxes should be removed from this sector,” he said.
Former BUET professor and energy expert Dr Ijaz Hossain warned that renewable energy is now critical for national security. “Ignoring it would be self-destructive,” he said.
Garment businessman Muhammad Ahsanul Rasel said lower solar costs would help export-oriented industries meet international carbon compliance standards.
Relief for freelancers and digital creators
The FY27 budget may also bring significant benefits for Bangladesh’s growing freelance and creator economy.
Officials said the proposed budget may withdraw the existing 7.5% withholding tax on income earned from international digital platforms, including YouTube, Facebook, TikTok and freelancing platforms.
Currently, such earnings are subject to source tax deductions. If approved, the exemption would apply to independent freelancers and content creators, while media houses and institutional entities would not qualify.
Finance Ministry officials said the provisions are expected to be included in the Finance Bill 2026 to enhance competitiveness in the ICT and digital services sector.
Sector insiders estimate that around 5 lakh freelancers could benefit from the move.
The government is also considering extending VAT exemption on Metro Rail fares for another year, as the current facility is set to expire in June.
Since launching commercial operations in December 2022, Metro Rail has become one of Dhaka’s most widely used transport systems, serving around 3.5 lakh passengers daily.
Officials said continuing the VAT waiver would help keep urban transport affordable.
Posts, Telecommunications and ICT Minister Fakir Mahbub Anam outlined a broader strategy in parliament to strengthen postal and digital services.
He said the government plans to establish franchise post offices and postal pickup points through private entrepreneurs to improve service reach.
Appropriate locations are being selected to ensure wider coverage, he added.
To support e-commerce and f-commerce, 14 fulfillment centers have already been established nationwide. These facilities support product collection, storage, processing, sorting, transportation and delivery.
The initiative aims to strengthen logistics for the country’s growing online commerce sector.
Expanding home delivery and digital services
The minister also highlighted ongoing postal modernization efforts, including home delivery of land documents, bulk passport delivery and driving licence distribution.
The government is also preparing to introduce cash-on-delivery (COD) services for e-commerce through the postal system.
In addition, traffic notices and video case-related documents from the Dhaka Metropolitan Police (DMP) are now being delivered via post.
Postal digitalization has advanced through the Domestic Mail Monitoring System (DMS), enabling real-time parcel tracking.
Bangladesh Post continues to offer low-cost parcel and mail services, while Express Mail Service (EMS) supports international shipments at affordable rates.
Postal services are also being used to transport seasonal fruits from production regions more quickly and at lower costs.
“When these initiatives are fully implemented, postal services will become more effective and citizen-friendly,” the minister said.