Leading trade bodies, professional institutions, and economic think tanks in Bangladesh have expressed mixed reactions to the proposed Tk938,000 crore national budget for FY27.
While praising its strategic shift toward deregulation, logistics development, and a business-friendly framework, stakeholders have voiced deep concerns regarding aggressive revenue targets, private sector crowding-out, and rising inflationary pressures on consumers.
The debt-based budget may pose a challenge in maintaining fiscal discipline in the future, said Dr Debapriya Bhattacharya, economist and CPD distinguished fellow.
He further said that the success of the budget will mainly depend on its effective implementation.
According to him, the dependence on foreign debt in the budget and the tendency to allocate large amounts in bulk can create uncertainty in fiscal management.
Bhattacharya said that the biggest test in the coming days will be how efficiently the government can implement the budget while maintaining the continuity of reforms.
CPD
The Centre for Policy Dialogue (CPD) expressed concern that if the government's bank loan dependence increases in the new budget announced, it may put pressure on credit flow in the private sector.
CPD research director Khandoker Golam Moazzem said that this budget may create a major challenge in terms of obtaining credit for the private sector. If the government's borrowing from the banking sector increases, the availability of money for the private sector may decrease, resulting in pressure on investment flows.
He also said that to deal with this situation, the government should increase financing opportunities for the private sector from domestic sources as well as international sources and ensure alternative fund flows.
Highlighting the positive aspects of the budget, he said that they welcome the initiative to expand the tax net to increase revenue collection. If it is implemented effectively, it can be a big achievement for the National Board of Revenue (NBR).
Ficci
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) welcomed the government’s strategic 3R (Recovery, Restoration & Reconstruction) framework, characterizing the Finance Bill 2026 as a progressive step toward improving the investment climate through tax predictability and digitalization.
Ficci lauded reforms such as treating tax deducted at source (TDS) as advance tax, transitioning to quarterly VAT returns, and launching the "BanglaBiz" platform to support foreign investors.
However, the chamber flagged critical concerns, noting that the Tk695,000 crore revenue collection target is highly ambitious, demanding an aggressive growth rate of 23% to 42%.
Ficci warned that raising the highest personal income tax rate to 35% will escalate the cost of employing skilled foreign professionals and recommended withdrawing the proposed 0.2% Advance Income Tax at the retailer level due to operational difficulties.
Rehab
The Real Estate and Housing Association of Bangladesh (Rehab) offered a more critical assessment, warning that the budget fell short of expectations and would drive up property prices.
Rehab President Ali Afzal stated that the imposition of a specific VAT on steel rods and new duties on construction materials would directly burden ordinary homebuyers.
Afzal expressed disappointment that long-standing demands for reducing flat and land registration costs went unaddressed, arguing that lower fees are essential to stimulate real transactions.
He warned that a real estate slowdown would ripple across 269 connected industries, including cement, steel, and logistics, risking the livelihoods of hundreds of thousands of workers. REHAB did, however, tentatively welcome the provision allowing the voluntary disclosure of investment.
Sanem
Prof Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), viewed the budget as a stabilizing force amid sluggish private investment and fragile business confidence.
He described keeping corporate tax rates unchanged and reducing withholding taxes on foreign loan interest as sensible moves to lower the cost of capital.
Raihan particularly lauded the budget’s focus on modernizing trade infrastructure post-LDC graduation.
He emphasized that the introduction of Free Trade Zones, increased caps on foreign ownership in off-docks, and private investment frameworks for ports and air cargo reflect a critical and timely recognition of logistics as a cornerstone for export diversification and global value chain integration.
ICAB
The Institute of Chartered Accountants of Bangladesh (ICAB) termed the budget strategic and forward-looking but raised serious alarms over deficit financing.
ICAB president NKA Mobin expressed deep concern regarding the government’s plan to finance Tk112,000 crore of development spending through bank borrowing, warning that it could severely reduce credit availability for the private sector.
ICAB praised structural reforms, including the fixation of tax rates for five years, corporate tax return digitalization through the Document Verification System (DVS), and VAT exemptions for freelancers.
However, the institute cautioned that new levies, such as the 0.2% tax on retail businesses and 0.5% on agricultural products, could exacerbate inflationary pressures. They urged a reconsideration of the 30% dividend distribution requirement for listed companies.
Build
Abul Kasem Khan, chairperson of Business Initiative Leading Development (Build), praised the proposed budget as an innovative and creative departure from traditional fiscal thinking.
He noted that the budget strongly aligns with the government’s deregulation agenda, aiming to cut red tape, extend tax exemptions, and improve the ease of doing business in line with its election manifesto.
Nonetheless, Khan stressed that the ultimate success of these initiatives hinges entirely on execution. He cautioned that severe headwinds—including a high deficit, weak banking sector health, low revenue mobilization, and global economic uncertainties—pose substantial risks that require rigorous monitoring to maintain macroeconomic stability.
DCCI
Dhaka Chamber of Commerce and Industry (DCCI) has hailed the proposed national budget as a business- and investment-friendly blueprint, though it warned that true success depends heavily on overcoming execution hurdles.
DCCI president Taskeen Ahmed noted that while the Tk938,000 crore budget signals growth, the targeted 30.34% revenue growth is highly ambitious under current macroeconomic realities.
He also cautioned that relying on Tk112,000 crore in bank borrowing to finance the deficit could risk crowding out private sector credit and stall banking sector recovery.
However, the chamber expressed deep disappointment over unchanged personal income tax thresholds during high inflation—reiterating its demand to raise the tax-free limit to Tk5 lakh—and criticized the spike in the maximum tax rate to 35%.