Dhaka: Dhaka Chamber of Commerce and Industry (DCCI) today welcomed some measures taken in the proposed national budget for the fiscal year 2025-26 (FY26) and suggested maintaining austerity in government expenditure. ‘We have seen some positive steps such as controlling inflation, few tax waivers, automated return system, reducing few advance tax, central bonded warehouse, VAT waiver on LNG import,’ said DCCI President Taskeen Ahmed in his initial budget reaction.
According to Bangladesh Sangbad Sangstha, DCCI President Taskeen Ahmed highlighted a Taka 100 crore fund for youth entrepreneurs as a positive initiative. He expressed concern over the almost unchanged tax-free income limit for individuals, suggesting this will place an additional tax burden on taxpayers, particularly those in the middle-income group and service-holders, starting next year.
Ahmed noted that while internet costs have been reduced, an increase in VAT on mobile phones could hinder growth in the digitization process. He also pointed out that achieving the revenue collection target will be a significant challenge for the government.
The DCCI president further commented on the government’s borrowing target from the banking system, suggesting it could shrink private sector credit flow. Ahmed proposed that the government reduce the cost of borrowing for businesses, recommending a rate between 6% and 7%.