Dhaka, June 11 -- The government has moved to bring millions of retailers into the tax net as part of efforts to expand Bangladesh's narrow tax base - a measure that could eventually affect prices of essential commodities.

The proposal comes at a time when households, particularly those on fixed and lower incomes, are already struggling with several years of elevated inflation.

Presenting the FY2026-27 budget on Thursday, Finance Minister Amir Khosru Mahmud Chowdhury proposed a 0.20 percent advance income tax on goods supplied to retailers.

"To broaden the tax base, I propose collecting 0.20 percent advance tax on the supply of goods to retailers," he said in his budget speech.

"The amount is very small - only Tk 2 for every Tk 1,000 ...