Dhaka: The Foreign Investors’ Chamber of Commerce and Industry (FICCI) acknowledged the government’s commitment in the National Budget for FY26 towards equitable economic transformation and fiscal consolidation. With a proposed budget size of Tk. 7,90,000 crore (12.7% of GDP), the government has targeted lowering the inflation rate.
According to Bangladesh Sangbad Sangstha, FICCI President Zaved Akhtar remarked at a post-budget press meeting that while the budget’s reform direction was positive, certain tax measures could impose unintended burdens on industries and individuals. He appreciated the interim government’s efforts to stabilize economic conditions and address existing challenges. Akhtar noted the Finance Adviser’s guidance that the budget aims to fortify the economy’s foundation rather than merely enhance growth potential.
The Chamber expressed concern over the increased tax burdens under the revised slabs, wherein salaried individuals earning between Tk. 70,000 and Tk. 100,000 per month may face a 50%-60% higher tax burden, and those earning between Tk. 120,000 to Tk. 175,000 could see a 20%-30% increase. FICCI reaffirmed its recommendation for a simplified and harmonized VAT system with a single rate and standard input credit mechanism.
FICCI also commended the government’s focus on digital transformation through tax administration automation and the implementation of the National Single Window. The Chamber welcomed the target to raise Tk. 4,99,000 crore through NBR (88% of total revenue) and supported initiatives to modernize tax administration and separate tax policy from tax collection functions. However, FICCI emphasized the need for realistic revenue targets and effective execution to avoid undue burdens on compliant taxpayers.
Projections indicate GDP growth could rise by 157 basis points from FY24-25, while inflation may decrease from double digits to 8% by June 2025. Despite this positive outlook, FICCI warned that higher minimum taxes and increased burdens on corporations and individuals might undermine recovery prospects.
The Chamber reiterated the importance of inclusive tax policy reforms, advocating for a stable and predictable tax environment along with a rationalized rate structure that encourages compliance and investment. FICCI remains committed to collaborating with policymakers to achieve shared economic objectives and support Bangladesh’s transition to a financially resilient future.
FICCI also highlighted concerns about the increased minimum tax from 0.6% to 1% for companies and from 0.25% to 1% for individuals, which could adversely impact SMEs, loss-making companies, and inflation-stricken individuals. The Chamber criticized the imposition of a 27.5% corporate tax rate for listed companies with less than 10% public shareholding and noted the withdrawal of benefits for companies with cashless transactions as counterproductive to capital market growth.
The increase in VAT on online sales from 5% to 15% is expected to hinder the growth of Bangladesh’s digital commerce sector, while the rise in customs duty on beverage concentrates from 10% to 15% could affect consumer prices and industry margins.
FICCI Advisers and former Presidents Rupali Haque Chowdhury and Naser Ezaz Bijoy also provided insights on the Finance Ordinance 2025.