The proposed national budget for FY2026–27 is broadly business- and investment-friendly, but its success will depend on effective implementation of reforms and meeting ambitious revenue targets, said the Dhaka Chamber of Commerce and Industry (DCCI).
DCCI President Taskin Ahmed made the remarks on Thursday at a post-budget immediate reaction program held at the DCCI auditorium in the capital.
He said the proposed Tk 9,38,000 crore budget for FY2026–27 is 19.4% higher than the previous fiscal year, but the targeted 30.34% revenue growth is challenging under current economic conditions. He also warned that heavy reliance on borrowing to finance the deficit could undermine banking sector recovery and restrict private sector credit flow.
While welcoming efforts to reduce operating expenditures, he said implementation capacity for the Tk3 lakh crore Annual Development Program (ADP) must be strengthened. He noted that ADP implementation in the current fiscal year stands at only 36.19%, stressing that budget credibility depends more on execution than size.
On tax policy, he said treating tax deducted at source (TDS) as advance tax reflects a long-standing business demand. DCCI also welcomed reduction of TDS to 4% on industrial raw materials, a 0.5% TDS rate on 60 essential goods, the announcement of a five-year tax framework in advance, and tax incentives for health care, renewable energy, and electric vehicle sectors.
Ahmed said expanding the tax base rather than increasing VAT rates, along with introducing quarterly online VAT returns, are positive measures. DCCI reiterated its demand to raise the tax-free income ceiling to Tk5 lakh.
On the CMSME sector, he said Tk 5,000 crore allocated under Bangladesh Bank’s Tk 60,000 crore incentive package is commendable. He also highlighted measures allowing turnover tax exemption up to Tk 50 lakh for SME entrepreneurs and up to Tk 70 lakh for women and persons with disabilities, alongside e-loan facilities of up to Tk 50,000 and simplified tax and VAT systems for small businesses.
He added that reduced taxes on electric vehicles, mobile phones, refrigerators, air conditioners, and tech products would support industrialization and investment. Initiatives for free trade zones and duty and VAT benefits for local manufacturing of electric buses, trucks, and e-bikes would further strengthen industrial growth.
On the energy sector, DCCI said VAT exemption on electric vehicles until 2030, reduced advance income tax at registration, and zero import duty for charging infrastructure are landmark measures. However, it said gas exploration efforts through drilling are insufficient and called for broader stakeholder consultation in setting long-term pricing in the import-dependent energy system.
On investment facilitation, DCCI said making the single-window system mandatory, issuing work permits within seven days, reducing withholding tax on foreign loan interest from 20 % to 10 %, and removing provisions that disallow expenses due to tax deducted at source would improve the investment climate.
DCCI Senior Vice President Rajib H Chowdhury, Vice President Md Salim Solaiman, and other board members were also present at the event.