Bangladesh’s interim government has proposed a Tk 1 billion startup fund and a series of tax reliefs to boost innovation, digital growth, and eco-friendly industries in its FY2025–26 budget.

Finance Advisor Salehuddin Ahmed unveiled the proposals on Monday during a nationally televised address.

To support young entrepreneurs, the government plans to launch a Tk 1 billion fund that will offer capital and training to emerging technology startups.

To explore the country’s maritime potential, Tk 2 billion has been allocated for blue economy research, focusing on sustainable ocean resource management and marine energy.

Climate resilience also features prominently. The Bangladesh Climate Change Trust Fund will channel Tk 1 billion into climate-linked technology initiatives, including improving media capacity for climate reporting.

Several tax incentives aim to ease costs in the ICT sector. The source tax on internet services is set to be halved to 5%, while the turnover tax on mobile operators may drop to 1.5%. VAT exemption is proposed for business purchases of monitors up to 30 inches in size.

However, a VAT hike from 5% to 15% on online sales commissions may strain digital marketplaces.

In the green tech sector, VAT on local e-bike production would be reduced by 5%, and key battery technologies would receive full VAT exemption until 2027. Import duties on components for cooling appliances are also set to be scrapped through 2028.

The proposed budget will go to parliament for approval on 30 June. The new fiscal year begins on 1 July.