Budget fails to satisfy middle-class, job holders, small investors
Daily Sun Report, Dhaka
Published: 03 Jun 2025
The newly proposed national budget has sparked mixed reactions among citizens from various walks of life.
Middle-class individuals, private job holders, small investors in the share market and mobile phone businessmen have expressed disappointment, saying the budget fails to address their everyday economic struggles amid rising inflation and a volatile market.
Kanok Lota, a housewife, expressed her disappointment over the lack of cost relief for running her household.
She said, “The prices of daily necessities are not decreasing. Though there is a proposal to reduce the prices of imported fish, meat and sugar, it hardly affects me. I do not use sugar regularly. Imported fish and meat are not affordable by middle-class families like mine. Reducing the price of ice cream will not help either. Overall, my family expenses will not go down.”
The tax-free income threshold for individual taxpayers remains unchanged at Tk3,50,000.
Collin Rodrick, a private job holder, said, “There is no good news for me in this budget. I had hoped the government would increase the tax-free income limit, which would offer some relief amid high inflation. But no such announcement has been made.”
Kazi Rakibul Hasan, a small investor in the share market, also expressed frustration.
“The market is in a weak state, and smallest investors are suffering losses. I was expecting the government to offer tax exemption benefits on capital gains, but that did not happen. So, there is nothing in this budget for us.”
However, there is some positive news for depositors.
Syed Mizanur Rahman, senior officer at First Security Islami Bank PLC, noted, “The new budget aims to support small depositors by increasing the excise duty exemption threshold on bank account balances from Tk1 lakh to Tk3 lakh. This is definitely a relief and a positive step.”
On the other hand, the price of mobile phones is expected to rise. The government has slightly reduced VAT exemption benefits for the production and assembly of mobile phones.
Rifat Hawladar, director of Nahian Enterprise, a mobile phone shop, said, “This move might help generate revenue, but it will negatively impact the market. The price of official mobile phones will increase, which will drive more customers towards unofficial handsets.”
He added, “We sell official mobile phones and pay VAT and taxes. But around 50% of phones in the market are unofficial, brought in through luggage without paying duties. Dishonest traders smuggle in large quantities and evade taxes. The government should either impose VAT on those handsets or take strong measures to stop their illegal entry and sale. Otherwise, it will lose more revenue despite reducing VAT exemptions.”