The Consumers Association of Bangladesh (CAB) has welcomed the proposed 2026-27 national budget as consumer-friendly but warned that its success will depend on effective implementation and whether promised benefits reach ordinary citizens.

SM Nazer Hossain, vice president of CAB's central committee, said the budget reflects the government's commitment to keeping prices of essential commodities affordable but cautioned that tax cuts alone would not guarantee relief for consumers.

"The proposed budget is consumer-friendly, but its actual impact on consumers will depend entirely on implementation," Hossain said in a reaction to the budget issued on Saturday.

He praised the government's decision to exempt 60 essential commodities from source taxes, increase taxes on tobacco products, reduce duties on renewable energy equipment and raise allocations for health, education and social protection.

However, he stressed that authorities must ensure tax benefits are passed on to consumers rather than absorbed by intermediaries or businesses.

"The government's responsibility is to ensure that the benefits of tax exemptions actually reach consumers. Otherwise, the intended benefits will not materialize at the grassroots level," he said.

Hossain said stronger citizen monitoring, regulatory oversight and administrative accountability would be required to prevent artificial shortages and unjustified price hikes, problems that have undermined previous policy measures.

He also called for closer scrutiny of business practices to ensure traders do not circumvent government decisions through new pricing strategies.

The consumer rights advocate welcomed proposed tax incentives for content creators and freelancers, saying many citizens are willing to pay taxes but are discouraged by complicated procedures. He suggested introducing simplified and package-based VAT and tax systems for small businesses to improve compliance and revenue collection.

Hossain also praised proposed tax concessions and service benefits for senior citizens aged 65 and above, describing them as a positive step toward strengthening social protection. However, he questioned how elderly citizens would access such benefits when train tickets are often unavailable shortly after sales open.

He further welcomed incentives aimed at expanding renewable energy use, including a proposed zero tax rate for the solar power sector until 2035, tax rebates for solar electricity users and reduced advance income taxes on electric vehicle registrations and renewals.

Such measures, he said, could help address electricity shortages, particularly in rural areas where power outages remain common.

While welcoming increased allocations for social protection, health and education, Hossain said the effectiveness of spending would matter more than the size of the budget itself.

"The key issue is not how large the budget is, but how effectively the allocations are implemented," he said.

He also called for reforms to the country's revenue collection system, arguing that stronger transparency, accountability and simplification would be essential to meeting revenue targets and ensuring successful budget implementation.

At the same time, Hossain expressed disappointment that the budget did not expand allocations for consumer awareness programs, strengthen the Trading Corporation of Bangladesh (TCB), increase social safety net coverage for low-income households or raise the tax-free income threshold to Tk 500,000.

He said additional measures were needed to ensure that benefits provided to businesses through incentives, subsidies and tariff reductions also reach workers, low-income consumers and marginalized groups.

Despite the shortcomings, Hossain expressed hope that if the government's welfare initiatives are implemented properly, ordinary consumers, farmers and low-income communities would benefit and economic activity would gain momentum.

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