Bangladesh's proposed budget for fiscal year 2026-27 includes significant tax reductions on gold and gold jewelry, along with lower import duties on a wide range of consumer goods and industrial raw materials. For overseas jewelry buyers and supply-chain partners, the proposed cut in source tax on gold supply from 5% to 0.5% signals potential cost savings for sourcing gold jewelry from Bangladesh, while reduced duties on raw materials may lower production costs for local manufacturers.
Gold and jewelry tax changes
The budget proposes reducing the source tax on the supply of gold and gold jewelry from 5% to 0.5%. Additionally, the 5% VAT on jewelry services would be replaced with a specific VAT of Tk 2,500 per bhori (a traditional unit of weight). These changes are expected to lower the effective tax burden on gold jewelry transactions, potentially making Bangladesh-sourced gold pieces more competitive for international buyers.
Import duty reductions on raw materials and equipment
Import duties on five key raw materials for float glass manufacturing would drop from 25% to 15%, and concessionary benefits are proposed for raw materials used in tyre, tube, skincare, and beauty products. The budget also eliminates customs, regulatory, and supplementary duties on laptops, desktops, servers, printers, and computer monitors, and reduces duties on POS machines and synthetic woven fabrics. These measures aim to lower production costs across multiple industries.
Consumer goods and essentials tax relief
The government proposes reducing source tax rates from 5%, 2%, and 1% to 0.5% on 60 daily essentials, including rice, wheat, potatoes, fish, onions, garlic, ginger, salt, sugar, and edible oil. Advance taxes on kidney dialysis filters, blood tubing sets, cardiac stents, and ocular lenses are waived or reduced, with stent prices expected to drop by Tk 20,000 each. Fertilizers and pesticides also receive full VAT or advance tax exemptions.
What buyers should watch
Overseas jewelry importers should monitor the implementation of the gold source tax cut and the new specific VAT on jewelry services, as these could lower landed costs for gold jewelry from Bangladesh. The broader reduction in import duties on raw materials may also improve cost structures for Bangladeshi manufacturers, potentially leading to more competitive pricing for OEM/ODM jewelry orders. However, buyers should verify final tax rates once the budget is enacted, as proposals may change during parliamentary approval.
Compliance and logistics signals
The budget withdraws the 5% source tax on imports of electric buses, trucks, and charging stations, and reduces advance tax on computer printers, flash memory, and monitors from 5% to 2%. Mobile phone manufacturers benefit from lower advance tax on 22 raw materials. These changes indicate a government push to modernize infrastructure and technology, which could improve logistics and communication efficiency for jewelry supply-chain operations in Bangladesh.
Source: Read the original report | Published: June 11, 2026