Tax Relief for Pesticide, Fertilizer, Animal Feed Production

The government has proposed a range of duty and tax benefits in the proposed budget for the 2026-27 fiscal year to boost production in the livestock and fisheries sectors and protect local industries. At the same time, it has also taken initiatives to increase tariffs on certain products to safeguard domestic producers.

Finance Minister Amir Khasru Mahmud Chowdhury made the proposals during the budget speech in Parliament on Thursday.

To encourage local production of pesticides and plant protection chemicals, the government has proposed value addition on 36 raw materials imported under a duty concession notification for pesticide manufacturing. It has also proposed a full VAT exemption, setting the rate at zero percent.

In the budget proposal, the government has also moved to extend concessional benefits on imports of raw materials for fertilizer production as part of efforts to encourage domestic industries in agricultural input manufacturing. It has proposed enhanced facilities for importing various veterinary medicines required for the livestock sector. Instead of specific branded products, concessional benefits will apply at a zero percent rate to relevant generic categories.

The measure is expected to make the supply of essential veterinary medicines more accessible in the country. To encourage cashew cultivation and processing industries, the government has proposed a significant increase in duties on imported raw and processed cashew nuts.

Currently, the duty rates stand at 1 percent and 5 percent respectively, but the proposal suggests raising them to 25 percent. However, a 15 percent duty has been proposed on raw cashew imports for domestic producers.