# New 0.2% Retail Sales Tax: Assessing Potential Price Increases and Small Business Impact

*The government's proposed budget includes a new 0.2% tax on retail sales, raising concerns about potential price increases.*

June 13, 2026 · business

## At a glance

- New 0.2% tax on retail sales proposed in budget.
- Concerns about potential price increases for consumers.
- Challenges in collecting tax from informal sector.

The government's proposed budget for the upcoming fiscal year includes a new 0.2% tax on retail sales. This means that for every 1,000 taka spent, 2 taka will be deducted as tax. While the tax amount is small, retailers and small businesses are concerned about the potential impact on prices and their profit margins.

## Concerns among small retailers

Small retailers, who often operate on thin profit margins, are worried about the new tax. They argue that the additional 2 taka tax per 1,000 taka spent could force them to increase prices, ultimately passing the cost onto consumers.

## Challenges in tax collection

There are also concerns about the practicality of collecting this new tax. With a significant portion of the economy operating informally, ensuring compliance and accurate tax collection could prove challenging.

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Source: https://pulsetoday.com.bd/en/business/new-retail-tax-price-impact