Published: 12:17 AM, 25 June 2026
Mounting Tax Burdens, Abnormally High Living Costs Perplex People
From Left: Dr. Hossain Zillur Rahman, Anu Muhammad, Dr. Debapriya Bhattacharya, Dr. Mainul Islam. -AA
Bangladesh is facing serious public concern over an abnormal spike in living costs and increasing tax burdens that are placing significant pressure on households across the country. From urban centers to rural communities, citizens are struggling to cope with rising prices of essential commodities, utility bills, housing expenses, transportation costs, and healthcare services. The combined impact of inflation and taxation has left many families worried about their financial future.
Over the past several years, the cost of living has increased steadily. Basic necessities such as rice, cooking oil, vegetables, fish, meat, and other daily essentials have become considerably more expensive. While wages have risen in some sectors, many workers argue that income growth has failed to keep pace with inflation. As a result, purchasing power has declined for a large segment of the population.
Middle-income families, traditionally regarded as the backbone of the country's economy, are finding it increasingly difficult to maintain their standard of living. Monthly household budgets that were once manageable now require careful planning and sacrifice. Many families have reduced discretionary spending, postponed major purchases, and cut back on recreational activities in order to cover essential expenses.
Housing costs have emerged as another major challenge. In cities such as Dhaka and Chattogram, rent continues to consume a substantial portion of household income. Rising construction costs and increasing land prices have contributed to higher rents, making affordable housing increasingly difficult to secure. Young professionals and newly married couples are among those most affected by these developments.
Utility expenses have also become a source of concern. Electricity, gas, water, and internet services account for a growing share of household expenditures. Businesses likewise face higher operating costs, which are often passed on to consumers through increased prices for goods and services. This cycle contributes further to inflationary pressure throughout the economy.
Transportation costs present another burden. Fluctuations in fuel prices directly influence public transport fares and logistics expenses. As transportation becomes more expensive, the cost of delivering goods rises, affecting prices in markets across the country. Commuters who rely on buses, ride-sharing services, and private vehicles often find themselves spending a larger portion of their income on travel.
Alongside inflation, tax-related concerns have become increasingly prominent in public discussions. Consumers pay various forms of taxes and duties on goods and services, many of which are indirectly reflected in market prices. Businesses frequently cite tax obligations, regulatory fees, and compliance costs as factors contributing to higher prices for consumers.
Economists note that taxation is essential for funding public services, infrastructure development, education, healthcare, and social welfare programs. However, many citizens believe that the overall burden of taxes and fees should be carefully balanced to avoid placing excessive pressure on households already struggling with rising living costs. Taxes on savings schemes have jeopardized retired officials who depend on their savings with their families after leaving their jobs.
Steep decline in foreign direct investment (FDI) has seriously slowed down economic progress all over Bangladesh. Moreover, around 2 million people have become jobless during last two years due to nearly 1500 factories laid off during the immediate past interim government's regime. Simultaneously, mob violence on political opponents, religious minorities, obstructing court proceedings at the hands of mob outfits, aggression on media professionals, harassing business owners through extortions, abusing state organs for hindering traders from travelling overseas etcetera have caused mortal drawbacks in foreign trade. The financial system offers no tax rebates to women entrepreneurs which obscures the prospects of women emancipation. The country's banking sector has become paralyzed under the load of corruption, mismanagement, and irregularities. A lot of banks are not being able to disburse required cash to meet customers' daily needs. Most of the Shariah-based banks have become dysfunctional with clients upset and angry with safety issues related to their deposits. Furthermore, collapse in law and order situation across Bangladesh has put the country's entrepreneurs, politicians, journalists and women in scary perils.
Small and medium-sized enterprises face similar challenges. Business owners often report difficulties managing increasing operational expenses while remaining competitive. Higher costs for raw materials, transportation, utilities, and taxation can reduce profitability and discourage investment. Such pressures may ultimately affect employment opportunities and economic growth.
The impact of rising living costs is particularly severe for low-income households. Families with limited earnings spend a significant portion of their income on food and basic necessities, leaving little room for savings or unexpected expenses. Any increase in prices can therefore have immediate consequences for their quality of life.
Experts suggest that addressing these concerns will require coordinated efforts involving economic reforms, inflation management, market monitoring, improved supply chains, and policies that encourage productivity and investment. Strengthening social safety nets and protecting vulnerable populations may also help alleviate hardship during periods of economic stress.
As Bangladesh continues its journey toward economic development, policymakers face the challenge of balancing revenue generation with affordability. For millions of citizens, the central question remains simple: how can ordinary people maintain a decent standard of living when prices continue to rise faster than their incomes?
The answer to that question will play a crucial role in shaping public confidence, economic stability, and the country's future prosperity.
Caretaker government's former Adviser Dr. Hossain Zillur Rahman said that quick and firm actions are necessary right now to restore people's confidence on the government. At the same time it's vital to assure citizens about the safety of their money deposited in banks, he further said. Dr. Hossain Zillur Rahman added that economy, investment and foreign trade cannot move forward under fearsome circumstances.
Professor Anu Muhammad, Jahangirnagar University said that corrupt officials and financial scammers are hardly punished in the country's legal system. He blamed a degenerated culture of impunity to culprits for Bangladesh's tattered economic status which has been prevailing for last nearly two decades.
Dr. Debapriya Bhattacharya, Distinguished Fellow of Center for Policy Dialogue (CPD) stated that good governance and rule of law in banks, financial institutions and stock markets must be established quickly to speed up Bangladesh's economic wheels. Socioeconomic advancement cannot be built up in the middle of a reign of bribery, extortion, inequalities and power abuse among top officials in state organs, he opined.
