The European business community has broadly welcomed Bangladesh’s proposed national budget for FY2026"27, praising its reform-oriented measures while cautioning that effective implementation and sustained policy consistency will be crucial to unlocking its full potential.
In an initial assessment issued on Sunday, EuroCham Bangladesh said the budget contains several positive and timely initiatives for businesses, particularly in tax administration, trade facilitation and investment promotion. However, it stressed that reforms on paper must now be translated into tangible results.
“At this crucial stage of Bangladesh’s economic transition, modernising tax administration, safeguarding macroeconomic stability, boosting investment and diversifying exports remain essential priorities,” the organisation said.
According to EuroCham, the proposed budget incorporates a number of recommendations long advocated by the European business community. These include the introduction of a multi-year tax policy roadmap, full digitalisation of tax filing and refund systems, expansion of bonded and duty-free facilities for export-oriented industries, and the proposed framework for free trade agreements.
The organisation believes these measures could significantly enhance policy predictability, improve the ease of doing business and strengthen Bangladesh’s attractiveness as a global investment destination.
EuroCham also welcomed incentives announced for renewable energy, electric vehicles, information and communication technology, semiconductors and manufacturing industries, describing them as important steps towards building a more diversified and future-ready economy.
While endorsing the government’s target of achieving 6.5 per cent GDP growth and expanding public investment, the chamber noted that ambitious growth goals would require deeper structural reforms.
It emphasised the need for a stable and uninterrupted energy supply, greater private-sector participation and stronger productivity gains to sustain economic momentum.
Commenting on the budget, EuroCham Bangladesh Executive Director Arif Shamma said the FY2026"27 budget contains encouraging measures aimed at improving tax administration and facilitating trade.
