Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed has described the proposed National Budget for FY2026-27, placed on Thursday, as broadly business- and investment-friendly, while cautioning that its ultimate success will depend on achieving ambitious revenue targets and ensuring full implementation of announced reforms.
He noted that the total budget of Tk 9,38,000 crore-an increase of 19.04 per cent over the previous fiscal year-alongside a projected revenue growth target of 30.34 per cent, would be challenging in the current macroeconomic environment. “The dependence on debt to meet the deficit is not positive for the recovery of the banking sector and credit flow to private investment,” he said.
At the same time, he welcomed the government’s move to contain operating expenditure. However, he observed that the proposed Annual Development Programme (ADP) of Tk 3 lakh crore-up by 30 per cent-raises concerns, particularly given this year’s implementation rate of only 36.19 per cent, which he said reflects structural weaknesses in execution capacity.
The DCCI President appreciated the expansion of the tax base without increasing VAT rates, along with the introduction of quarterly online VAT returns, describing them as positive administrative reforms. However, he termed the unchanged tax-free income threshold amid inflation and the maximum income tax rate of 35 per cent as disappointing, urging that the tax-free income ceiling be raised to Tk 5 lakh.
He also welcomed the reduction of customs duties on imported POS machines to support cashless transactions and the removal of advance tax, calling it a “groundbreaking step”.
Taskin Ahmed further noted that the long-standing business demand to treat tax at source as advance tax has been addressed. He also praised the reduction of tax at source on industrial raw materials to 4 per cent, the introduction of 0.5 per cent tax at source on 60 daily essentials, the advance announcement of a five-year tax framework, and tax exemptions for healthcare, renewable energy, and electric vehicle sectors.
He described the allocation of Tk 5,000 crore for the CMSME sector under the Tk 60,000 crore Bangladesh Bank incentive package as commendable. He further welcomed tax-free turnover thresholds of up to Tk 50 lakh for SME entrepreneurs and Tk 70 lakh for women and differently-abled entrepreneurs, as well as the introduction of e-loans of up to Tk 50,000.
According to him, a flat-rate turnover tax system and separate VAT return forms for small businesses would significantly simplify tax compliance and improve ease of doing business.
