BSS
  11 Jun 2026, 16:30

Khosru proposes long-term tax incentives to dev semiconductor industry

SANGSAD BHABAN, June 11, 2026 (BSS) - Finance Minister Amir Khosru Mahmud 
Chowdhury has proposed long-term fiscal incentives for the development of 
Bangladesh's semiconductor industry, aiming to leverage the country's growing 
pool of engineering talent, create high-skilled employment opportunities and 
promote export-oriented industrial growth.

Presenting the national budget of approximately Taka 9.38 lakh crore for 
fiscal year 2026-27 in the Jatiya Sangsad (JS) today, he said Bangladesh 
produces a large number of qualified engineers every year, while many skilled 
professionals from the Bangladeshi diaspora are contributing to the global 
technology sector.

To attract investment and support the emergence of a domestic semiconductor 
ecosystem, the finance minister proposed issuing a new notification granting 
extensive tax and duty exemptions for the sector. 

Under the proposal, imports of raw materials and other inputs required for 
semiconductor manufacturing would be exempt from regulatory duty, 
supplementary duty, value-added tax (VAT), and advance tax, while a nominal 
one percent import duty would remain applicable.

Khosru said the proposed incentives are intended to encourage the 
establishment of semiconductor manufacturing and related industries in 
Bangladesh, helping the country move up the global value chain and diversify 
its export basket beyond traditional sectors.

He expressed optimism that the measures would help attract both local and 
foreign investment, facilitate technology transfer, and create a foundation 
for a high-value technology manufacturing industry in the country.