Finance Minister Amir Khosru Mahmud Chowdhury says the new government is facing a "three-way challenge" in managing the economy, like a fragile fiscal situation, rising expenditure pressures, and external shocks.
Talking to newsmen after an internal meeting at the National Board of Revenue (NBR) on Wednesday, he said the current administration inherited an economy in "very weak condition" and an immediate priority is to stabilise it without printing money.
Officials who attended the meeting said the minister gave the nod to waiver of 7.5-percent Advance Tax (AT) on import of newsprint for newspaper industries in the next budget.
Newspaper Owners Association of Bangladesh (NOAB) leaders have long demanded withdrawal of the AT that has been increased by 2.5 per cent in the current fiscal year (FY) budget.
At a pre-budget meeting on Tuesday at the revenue board, NOAB president Matiur Rahman Chowdhury said 3.0-percent import duty, 15-percent VAT, 5.0-percent advance income tax and 7.5-percent advance tax are currently paid on the imports of newsprint--the main raw material of newspapers.
When other costs, inclusive of transportation, are added up to the aggregate, the landed cost of paper stands at about 130 per cent to 132 per cent.
NBR officials said the FM directed the taxmen not to impose tax on sensitive sectors in the next budget for FY 2026-27 whereby mass people could be affected.
On the upcoming national budget, the custodian of exchequer said discussions were ongoing to design a framework that addresses multiple priorities, including revenue mobilisation, employment generation, support for women and small businesses, and investment promotion
"We want to prepare a budget that accommodates all these concerns," he said, adding that the process is still under review.
Underscoring that resource mobilisation remains the key challenge, the minister said first task of the government is to salvage the economy.
"At the same time, we must fulfill the commitments made to the people in our election manifesto," he said,
He highlighted that without strengthening revenue collection, it would be difficult to address both economic stabilisation and public commitments.
He also pointed to the ongoing Middle East conflict as an additional pressure, saying it has increased energy-import costs.
"This is a three-way challenge-stabilising the economy, meeting public commitments, and managing external shocks."
Responding to a question on Bangladesh's LDC graduation, he said the process is underway and will proceed through the UN Economic and Social Council (ECOSOC) and later the UN General Assembly.
"It is a continuing process. Nothing can be confirmed until it is finalised," he notes.
Addressing concerns over the low tax-GDP ratio, he said it is closely linked to the overall size and strengths of the economy.
"If we cannot energise the economy, increasing the tax-GDP ratio will be difficult," he said.
He reaffirms government's shift from a debt-driven to an investment-led growth model, stressing that attracting both domestic and foreign investment is critical.
The FM acknowledges that frequent policy changes in the past have discouraged investors.
"We must ensure policy stability so that investors can plan long-term. Without confidence, neither local nor foreign investors will come," he told the journalists about his government's stance.
On allegations of tax evasion by large corporations, he said the issue is under review along with other fiscal measures.
"All matters are being examined. This is not limited to a single issue."
The finance and planning minister confirmed meetings with the Japanese and German ambassadors later in the day to discuss bilateral cooperation, particularly in the context of the current economic challenges.
Defending social-protection initiatives, he said the government aims to prioritise marginalised groups often left out of economic benefits.
"We have started with the marginalized community. Their needs must be addressed first," he said.
The minister also stresses the need to diversify exports beyond the garment sector and extend incentives-such as bonded-warehouse facilities and back-to-back LCs-to emerging sectors.
He further announced plans for "serious deregulation" to improve the investment climate.
He expressed optimism that investment would increase if confidence in the economy is restored.
"We are getting strong responses. If we can ensure discipline in the financial sector and capital market, and create trust, investment will come."
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