The cost of living in Bangladesh continues to escalate, with little respite in sight for the general populace.
Despite widespread anticipation of price reductions during Ramadan, the government has managed only minimal interventions, leaving food costs at an all-time high.
The prices of fish, meat, dairy, and edible oil remain beyond the reach of many, exacerbating the financial strain on ordinary citizens.
In light of the upcoming budget, economists and policy analysts stress the urgent need for measures to mitigate this financial pressure, particularly for lower-income groups.
Experts advocate for the regulation of food prices, reduction of import and production costs of essential commodities, and policy interventions to ease burdens in key sectors such as fuel, education, and healthcare.
Recommendations include tax exemptions and increased budgetary allocations to social security programmes, ensuring affordability for both urban and rural populations.
Calls have also been made to raise the tax-free income threshold and lower minimum tax obligations.
Selim Raihan, executive director of the South Asian Network on Economic Modelling (SANEM), remarked, "Historically, affluent interest groups have influenced budget formulations to serve their interests, often sidelining the needs of ordinary citizens. With the interim government emerging through public movements, we hope to see a shift in priorities—one that genuinely addresses the soaring cost of living for the masses."
Echoing similar concerns, former caretaker government adviser Mirza Azizul Islam noted, "The expectation that the new government will lower living costs is widespread. While certain steps have been taken, the real impact remains to be seen. However, within five months of assuming office, the government has raised VAT and supplementary duties, exacerbating financial pressure on the public. The upcoming budget must focus on reversing the cost surge that has persisted for the past three years."
A report by the Bangladesh Trade and Tariff Commission (BTTC) underscores the role of fuel and fertiliser prices in domestic production costs.
It suggests that reducing these expenses could lower overall supply chain costs.
The report further highlights that while global rice prices fell by 24.19% over the past year, domestic prices rose by 7.14%.
Though import duties on rice have been removed, a 3% advance income tax (AIT) remains, alongside unchanged tariffs on essentials like lentils and chickpeas, which have surged in price by 35.14% over the past year.
The government’s fiscal policies have further exacerbated the crisis.
A directive issued on 9 January increased VAT and supplementary duties on nearly 100 items, alongside a fuel price hike that directly impacted transport costs.
Medicine prices have not decreased, while education-related expenses continue to climb, with private institutions raising tuition fees.
Former chairman of National Board of Revenue (NBR), Abdul Mazid highlighted the fiscal dilemma, stating, "Over 55–60% of the national budget is funded through domestic revenue, primarily collected through taxes, VAT, and duties. While tax reductions could ease financial stress, it would also lower government revenues, making it crucial to explore alternative revenue streams without imposing further financial burdens on the public."
Housing expenses add another layer to the financial strain.
A standard two-room apartment in Dhaka rents for an average of Tk8,000–10,000, while a three-room unit in a better locality costs between Tk25,000–30,000.
A four-member family's monthly food expenditure ranges between Tk15,000–20,000, with additional costs for education, healthcare, transport, and utilities raising total living expenses to Tk25,000–35,000 per month.
Ahsan Al Mahmud, a private sector employee, expressed his frustration, stating, "With a monthly income of Tk40,000, it is nearly impossible to maintain a decent standard of living while ensuring nutritious meals for a family of four. We urge the government to prioritise the well-being of ordinary citizens by ensuring food security and affordability."
Meanwhile, taxpayers continue to bear the brunt of rising costs.
The tax-free income threshold remains at Tk3.5 lakh per year, meaning individuals earning above Tk29,167 per month are liable for taxation.
Despite successive budget expansions, this threshold has remained unchanged.
Former NBR member Farid Uddin pointed out the imbalance in taxation policies, stating, "Raising the tax-free threshold for general taxpayers would result in an estimated revenue loss of Tk70–80 lakh, a sum that pales in comparison to the billions lost through tax evasion by large-scale defaulters. The government should prioritise recovering unpaid dues from major tax evaders instead of overburdening the average citizen. This should be a key focus in the upcoming budget."
With the budget announcement approaching, public sentiment is one of uncertainty, as citizens hope for policy reforms that address the rising cost of living rather than further exacerbating financial hardships.
The government's approach in this regard will be closely scrutinised, with expectations high for a budget that prioritises economic relief for the masses.
