Bangladesh

  I n 2025, Bangladesh confronted persistent inflationary pressures, significantly impacting household budgets. To alleviate this burden, the government implemented a zero Value Added Tax (VAT) policy on essential goods within supermarkets. This initiative aimed to directly reduce consumer costs amidst a challenging economic landscape characterized by fluctuating global commodity prices and domestic supply chain vulnerabilities. The primary driver for the VAT exemption was the sustained high inflation, particularly in food items. Data from the Bangladesh Bank indicated that while overall inflation showed marginal decreases, food inflation remained a significant concern. Contributing factors included global supply chain disruptions, the depreciation of the taka, and inherent challenges within the domestic agricultural sector. The government's decision to eliminate VAT on essentials in supermarkets was a direct response to these pressures, intending to provide immediate financial r...