The government has proposed a series of VAT exemptions for startups, freelancers and content creators in the 2026–27 fiscal year budget, aiming to support the country’s digital economy, innovation and young entrepreneurs.
The move is expected to reduce operating costs and encourage investment and job creation, according to stakeholders. The proposed budget sets the revenue target at Tk695,000 crore, with a deficit of Tk243,000 crore, to be financed through domestic and foreign borrowing.
According to the budget speech draft, the existing 15% value-added tax (VAT) on services provided by local startups has been proposed for exemption. VAT on imported services used by startups, as well as office and facility rentals, has also been proposed to be waived.
The tax benefits are proposed to remain in effect until June 30, 2035.
In addition, the draft budget proposes full VAT exemption on services provided by freelancers and content creators, including YouTubers, digital content creators, graphic designers, software developers and online consultants.
Stakeholders said the measures could reduce operating costs and support business expansion in the digital sector.
Freelancing, content creation and startup ventures have become key income sources for young people in Bangladesh. The government has also prioritized these sectors as part of its digital transformation agenda.
Finance Minister Amir Khasru Mahmud Chowdhury unveiled the proposed national budget for the 2026–27 fiscal year in parliament on Thursday. The budget, the first under the current government, has an outlay of Tk938,000 crore.
