Dhaka, June 3 -- The government has offered tax advantages to local manufacturers of medicines, two-wheelers and three-wheelers and to the makers of electrical and electronics goods for FY26.

VAT exemption on API (active pharmaceutical ingredients) production has been extended to June 30, 2030, which will have an impact on the business of Beximco Pharmaceuticals, Square Pharmaceuticals, and Renata.

The strengthening of local capacity to make APIs will reduce dependency on imports (mostly from India and China), lowering production costs, improving medicine availability, and enhancing export potential for Bangladesh's growing pharma industry.

In the proposed budget for FY26, the government proposed removing all VATs in excess of 5.0 per ...