The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, has described the proposed national budget of Tk 9.38 lakh crore for FY2026"27 as "large but feasible." However, the organization has stressed the need for foresight, efficiency, and transparency in implementing the budget.
In an immediate reaction to the budget announced on Saturday (June 13), FBCCI said the budget size is not unrealistic in Bangladesh's journey towards becoming a trillion-dollar economy despite prevailing global geopolitical challenges. However, it noted that the government would need to make all-out efforts to implement the largest budget in the country's history.
The organization congratulated the Chief Adviser and the Finance Adviser for placing emphasis on economic stability, investment, production, and employment generation in the proposed budget.
FBCCI noted that the proposed revenue collection target of Tk 6.95 lakh crore would be a major challenge for the government. Given the current global and domestic economic environment, it said ensuring transparency in revenue management and implementing reforms in the National Board of Revenue (NBR) would be crucial to achieving the target.
The budget proposes raising Tk 1.27 lakh crore from domestic sources to finance the fiscal deficit. FBCCI expressed concern that excessive government borrowing from the banking sector could crowd out private-sector credit, adversely affecting investment and employment. The organization suggested that the government should, as far as possible, seek financing from foreign sources at lower interest rates instead of relying heavily on local banks.
FBCCI welcomed the announcement of the Tk 60,000 crore "Stimulus Package 2026" aimed at facilitating credit flow to the private sector. It also praised the reduction of advance income tax on imports of industrial raw materials from 5 percent to 4 percent, as well as tax cuts on imports of essential commodities such as rice, pulses, edible oil, and spices. The proposed tax exemptions and special allocations for startups and women entrepreneurs were also appreciated.
The organization described the proposal to waive customs duties and VAT on imports of computer equipment, including laptops and desktops, as a significant step towards building a digitally skilled workforce. It also welcomed the proposal to maintain a zero percent tax rate for the solar power sector until 2035 and provide duty exemptions on electric vehicle imports to promote clean energy and environmental sustainability.
While acknowledging the increase in the tax-free income threshold from Tk 350,000 to Tk 375,000, FBCCI recommended a further increase in view of persistent inflation and proposed reducing the maximum individual tax rate from 35 percent to 25 percent.
At the same time, the organization expressed concern that higher VAT on construction materials, including steel rods, could negatively affect the construction sector.
FBCCI said it is currently conducting a detailed analysis of the proposed budget and will soon submit comprehensive recommendations to the government based on feedback from its member organizations.
