Business Report:
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) acknowledged the government’s commitment in the National Budget for FY26 toward equitable economic transformation and fiscal consolidation.
With a proposed budget outlay of Tk. 7,90,000 crore (12.7% of GDP), the government has set a target to bring down inflation.
“FICCI sees the reform direction of the budget as encouraging; however, certain proposed tax measures may place unintended burdens on both industries and individuals,” stated Zaved Akhtar, President of FICCI, during a post-budget press briefing held at the FICCI office in the capital on Wednesday.
He noted that the interim government has managed to stabilize the economy and restore confidence in the short term. “We commend the budget for acknowledging these challenges and taking steps to address them,” he added.
The FICCI President also highlighted that the Finance Adviser’s message was clear: the intent of the budget is to strengthen the economic foundation rather than aggressively pursue growth in the current context.
Regarding increased tax burdens, FICCI pointed out that under the revised tax structure, salaried individuals earning between Tk. 70,000 and Tk. 100,000 per month may face a 50%-60% rise in tax liability, while those earning between Tk. 120,000 and Tk. 175,000 may see a 20%-30% increase.
Reiterating a long-standing position, FICCI emphasized the need for a simplified, harmonized VAT regime featuring a single rate and a standard input credit mechanism.
The Chamber appreciated ongoing efforts to digitize the tax system, including automation in tax administration and the implementation of the National Single Window. FICCI welcomed the government’s target to collect Tk. 4,99,000 crore through the National Board of Revenue-representing 88% of total revenue-and supported initiatives to modernize tax administration and separate tax policy formulation from collection responsibilities.
However, the Chamber stressed the importance of setting realistic revenue targets and ensuring effective implementation to avoid placing undue pressure on compliant taxpayers.
Projections indicate that GDP growth could rise by 157 basis points from FY24 to FY25, while inflation may drop significantly to 8% by June 2025.
While this reflects a positive macroeconomic trend, FICCI warned that higher minimum taxes and increased burdens on corporates and individuals may slow the pace of recovery.
The Chamber once again called for inclusive tax policy reforms, underlining the need for a stable, predictable fiscal environment and a rationalized rate structure that promotes compliance and incentivizes investment.
FICCI reaffirmed its commitment to working with policymakers to achieve shared economic goals, attract foreign direct investment (FDI), and support Bangladesh’s transition to a more resilient financial future.
The Chamber also expressed concern over the hike in minimum tax rates-from 0.6% to 1% for companies and from 0.25% to 1% for individuals-saying this could disproportionately hurt SMEs, loss-making firms, and individuals already grappling with inflation.
Another point of contention was the imposition of a 27.5% corporate tax rate on listed companies with less than 10% public shareholding.
Additionally, the withdrawal of reduced tax rates for companies operating via cashless transactions, FICCI noted, runs counter to efforts aimed at deepening capital markets and encouraging quality listings.
The Chamber also flagged the sharp VAT hike on online sales-from 5% to 15%-as a potential obstacle to the growth of Bangladesh’s burgeoning digital commerce sector.
