Finance Adviser Dr Salehuddin Ahmed announced a strategic plan to reduce customs duties on imported goods and initiate trade discussions with the United States.

A key proposal includes the complete withdrawal of import duties on 110 products, primarily from the US, to facilitate smoother trade relations.

The announcement was made during the budget speech for the 2025-26 fiscal year, delivered at 3:00pm on Monday, June 2, 2025.

With no functioning parliament or political government, the budget presentation was broadcast on Bangladesh Television instead of being tabled in parliament.

Key proposals on import duties

In his speech, Salehuddin outlined the following measures to reform customs duties and tariffs:

Complete Withdrawal of Import Duties: 110 products will be exempt from import duties.

Reduction of Import Duties: Duties on 65 products will be lowered.

Withdrawal of Supplementary Duties: Supplementary duties on 9 products will be fully removed.

Reduction of Supplementary Duties: Supplementary duties on 442 products will be reduced.

Tariff and Minimum Price Adjustments:

Elimination of all existing minimum and tariff prices as part of a phased withdrawal.

Removal of minimum prices for 84 products.

Increase in minimum prices for 23 products to rationalize tariff structures.

These measures aim to streamline trade processes and align with preparations for a trade dialogue with the United States.

Budget overview

Proposed budget size: Tk 7,90,000 crore.

Comparison to 2024-25 Fiscal Year: The 2025-26 budget is 7,000 crore taka less than the 2024-25 fiscal year budget (Tk 7,97,000 crore), marking the first time in Bangladesh’s history that the budget size has been reduced.

Context and implications

The proposed duty reductions and tariff adjustments reflect Bangladesh’s commitment to fostering international trade, particularly with the United States. The budget’s historic reduction in size signals a focus on fiscal discipline and economic efficiency. Further details on the trade dialogue and specific product lists are expected to be clarified in subsequent announcements.