Proposed budget will deliver economic stability: Business leaders
Reza Mahmud :
Business leaders expressed optimism over the proposed national budget saying it will significantly contribute to ensuring financial stability and promoting inclusive development.
They also said the provision of paving way to adjust Advanced Income Tax (AIT) for the next fiscal year will be helpful for businesses to further boost.
“Keeping the provision of adjustment of AIT for the next fiscal year is a great privileged for the businesses. The previous government has taken the AIT as complete seizures.
Even if the tax become lower than the AIT, the previous government were not pave way to adjust those, but this budget do such a good initiative,” Asharf Ahmed, former President of the Dhaka Chamber of Commerce Industry (DCCI) told The New Nation on Tuesday.
Business leaders reiterated their commitment to working closely with the government in implementing the budget, particularly in areas such as enhancing transparency in tax administration, improving the overall business climate, and advancing much-needed economic reforms.
They affirmed their continued support and guidance for the country’s economic and social progress.
Business leaders observed that while the budget’s implementation will be particularly difficult, its success hinges on more than just sound fiscal management.
It will also require sweeping reforms in tax policy, greater automation of the tax system, minimization of revenue leakage, and enhanced capacity of tax authorities to deliver efficient public services.
Business leaders underscored that achieving higher revenue targets will depend largely on digitizing the tax system, simplifying tax procedures, and introducing taxpayer-friendly policies.
They further advocated for reducing the advance tax on imported industrial raw materials to zero to ease the burden on manufacturers, they said.
In a press release responding to the proposed national budget for the fiscal year 2025-26 the Metropolitan Chamber of Commerce and Industry (MCCI) on Tuesday expressed optimism over the proposed budget.
MCCI leadrs congratulated Finance Adviser Dr. Salehuddin Ahmed for successfully presenting the country’s 54th national budget.
The chamber acknowledged that crafting the budget in the face of numerous challenges-such as shrinking export markets amid rising global inflation, a slowdown in investments, elevated bank lending rates, persistent global conflicts, and the approaching transition to developing country status in 2026-was a bold and commendable effort.
The chamber reiterated its long-standing advocacy for meaningful structural reforms in the tax administration to ensure effective and efficient revenue collection.
MCCI voiced strong opposition to increasing the tax burden on existing compliant taxpayers by raising tax rates. Instead, it stressed the importance of broadening the tax base as a sustainable solution.
The chamber also emphasized the need to strike an appropriate balance between expanding the tax net and increasing rates. Furthermore, it called for a strategic overhaul of the banking sector to ensure sound financial governance.
Highlighting a major concern, MCCI pointed out that the government continues to face significant challenges in expanding the tax base and improving the tax-to-GDP ratio.
“It is important to note that for the projected GDP of Tk 6,244,578 crore in FY 2025-26, the revenue collection target stands at Tk 564,000 crore-only 9% of GDP,” the chamber remarked.