The Dhaka Chamber of Commerce and Industry (DCCI) has proposed to set the tax-free income limit at Tk5 lakh and reduce the maximum tax rate to 25% in the upcoming national budget for FY27.
At the same time, the organization has emphasized on expanding the tax net, modernizing tax administration and reforming the VAT system.
These proposals were presented at a meeting titled “Pre-Budget Discussion 2026-27: Private Sector Expectations” held at the Intercontinental Hotel in the capital on Monday (April 13).
The DCCI said that the current annual tax-free income limit is Tk3.75 lakh, which has become insufficient in the context of the existing inflation. With inflation standing at about 8.5%, the real income of the common man is decreasing.
In this situation, raising the tax-free income limit to Tk5 lakh will provide relief to low- and middle-income taxpayers and reduce their suffering.
The organization further mentioned that about 80% of the country's economy is still in the informal sector. The government is losing significant revenue every year as a large number of potential taxpayers are outside the tax net. If the tax system can be simplified and automated, it will be possible to identify new taxpayers and expand the tax net.
In the pre-budget discussion, the DCCI presented a total of 23 proposals. Notable among these were reducing the maximum tax rate for individuals to 25%, setting the tax rate for non-listed companies at the same level as listed companies (25%), stepwise withdrawal of advance tax at the production stage, and reduction of advance tax in the case of commercial imports.
In addition, several recommendations were made to make the VAT system more modern and business-friendly. These include launching a mobile app along with a website for VAT collection, completely abolishing the advance VAT system and determining VAT only on the final sale price, and launching a 'one-stop service' to simplify the VAT refund process.
DCCI president Taskin Ahmed said that economic uncertainty has increased in the current global context. Especially the tension in the Middle East is causing an increase in fuel prices, pressure on foreign exchange, increasing import costs and disruptions in the supply chain. Its impact has already been felt in production costs, transportation costs and inflation.
Minister for Industry and Commerce Khandaker Abdul Muktadir was present as the chief guest at the discussion.