Dhaka, June 2 -- To reduce the cost of renting aircraft used for passenger transport, the government has proposed to exempt it of value-added tax (VAT) in the budget for the 2025-26 fiscal year.

Finance Advisor Salehuddin Ahmed presented the budget of Tk 7.90 trillion at 3pm on Monday.

In it, the interim government proposed exemptions from VAT and excise duty in several sectors to provide relief to the public.

As part of this, a VAT exemption has been proposed for aircraft rentals.

Currently, a 15 percent VAT is imposed on aircraft rentals. Under the existing system, the first instalment is exempt from VAT.

However, when subsequent instalments are sent through Bangladesh Bank, VAT is levied again on the same fare.

This has led to a ...