The government has proposed imposing value-added tax (VAT) on domestically produced alcoholic beverages in the upcoming fiscal year, according to the budget proposal.
Under the proposal, a fixed tax of Tk500 per liter will be levied on alcohol produced by state-owned Carew & Company.
With the introduction of VAT, prices of both domestic and branded alcoholic products produced by Carew are expected to increase by Tk500 per liter. The proposal is included in the FY2026-27 budget, which seeks amendments to the third schedule of the VAT Act.
Previously, Carew & Company's locally produced alcoholic beverages were subject only to excise duties paid to the Department of Narcotics Control, without VAT. With the new inclusion of VAT, consumers will now have to pay higher prices for domestically produced alcohol.
Finance Minister Amir Khasru Mahmud Chowdhury unveiled the proposed national budget for the 2026–27 fiscal year in parliament on Thursday. The proposed budget, the first under the current government, has an outlay of Tk938,000 crore.
