Long-term tax incentives proposed to dev semiconductor industry

Finance Minister Amir Khasru 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 trillion for fiscal year 2026-27 in the Jatiya Sangsad (JS) today, Thursday, 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.

Khasru 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.