Dhaka, June 2 -- The cost of online shopping may increase as the proposed budget for the 2025-26 fiscal year increases the VAT rate on online product sales commissions from 5 percent to 15 percent.

Industry insiders warn that the measure is likely to have a negative impact on the e-commerce sector.

AHM Hasinul Quddus Rusho, the chief corporate affairs officer at Daraz Bangladesh -- one of the country's leading online shopping platforms, says: "The new 15 percent proposed VAT rate will significantly increase the costs of the e-commerce businesses, which will have a negative impact on both entrepreneurs and consumers."

"Previously, online sellers used to pay VAT on commission at a rate of 5 percent, which has now increased by 10 percent,...