Government Plans Higher Taxes on Tobacco Raw Materials; Tax Relief in Health Sector

PNN News Desk

To protect public health and discourage smoking, the government is planning to impose strict duties on raw materials used in tobacco products in the upcoming 2026–27 national budget. Tax relief measures for healthcare and digital economy sectors are also under consideration.

Sources in the Ministry of Finance said significant tariff increases are being prepared on filter manufacturing materials and nicotine imports used in cigarette production.

On the other hand, VAT exemptions are being considered for medical devices such as heart stents and eye lenses to reduce patient costs.

Tax reductions may also be introduced for dialysis equipment and related medical supplies to make kidney treatment more affordable.

The budget may also include special tax benefits for freelancers and content creators to encourage the digital economy.

The income tax exemption threshold may be raised to 375,000 taka, providing relief to lower and middle-income taxpayers.

Reforms in VAT administration are also being considered, including granting the National Board of Revenue authority to determine input-output coefficients.

Corporate tax rates are expected to remain unchanged to maintain investment stability.