‘Corporate tax rates to be revisited in FY26 budget’

NN Online:

Finance Adviser Dr Salehuddin Ahmed hinted on Monday that corporate tax rates in the country may be revisited in the upcoming budget for FY26, citing concerns over their high levels.

The adviser also said emphasis would be given on realizing more direct tax than indirect tax to reduce disparity in the country.

The finance adviser said this while briefing reporters after holding a pre-budget meeting with the country’s renowned economists held at the State Guest House Padma in the capital on Monday evening.

“After taking charge, I cancelled many SROs on tax exemptions given to many sectors and individuals while such kinds of exemptions will be reduced further in the next budget to reduce the tax expenditure. The impact of indirect tax equally on both the rich and poor. So, emphasis will be given on realizing more direct tax than indirect tax,” he said.

The finance adviser said he would accomplish at least two tasks to leave a major footprint before the successive government. “Out of the two, one is separating revenue collection from revenue policy and it’s a huge task. We’ll initiate the process and hopefully the next government will continue it after rectifying the concerned law.”

Citing unnecessary delay in project implementation, he said they would devise such a system where the development projects would be prepared within the 1st and 2nd quarter while those could go into implementation from the 3rd and 4th quarters of a fiscal year.

He informed that the economists in the meeting had suggested that it would be possible to rein in inflation through prudent monetary policy while also recommending creating a buffer stock of essential items alongside generating more employment.

Dr Salehuddin said some projects would be undertaken locally for creating employment while additional emphasis would be given in the budget for skills development.

He informed that the economists in the meeting suggested optimum utilisation of resources and expenditure in primary education side by side ensuring that the real beneficiaries get support from the social safety nets.

Noting that the next budget for FY26 would not be ambitious, the finance adviser said they would set a target to contain inflation at 6.5 per cent in the next fiscal year.

Dhaka University Prof Dr MM Akash said they had suggested the interim government take such steps which would help to keep footprints before the successive government.

Finance Division Secretary Dr Md Khairuzzman Mozumder said the next budget would be very much transparent while they are receiving necessary guidelines in this regard.

Eminent economist and CPD Chairman Dr Rehman Sobhan, PRI Chairman Dr Zaidi Sattar, Dr Mustafa K Mujeri, Dr Kazi Sahabuddin, Distinguished fellow of CPD Dr Mustafizur Rahman, CPD executive director Dr Fahmida Khatun attended the meeting, among others.

Besides, Chief Adviser’s Special Assistant Dr Anisuzzaman Chowdhury and Financial Institutions Division Secretary Nazma Mubarek were present.