Amid various challenges at home and abroad, businesses are urging the government to ensure that the upcoming national budget for the fiscal year 2026-27 is supportive and growth-oriented rather than punitive.
During a pre-budget seminar on private-sector priorities in Dhaka, jointly organized by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Economic Reporters’ Forum (ERF), stakeholders emphasized the need for a reduction in effective tax rates, including turnover tax. They also stressed the importance of a balanced and practical tax policy to foster investment and economic growth.
Kamran T Rahman, president of MCCI, highlighted the current economic difficulties, including high inflation, low investment levels, high interest rates, and foreign exchange pressures, particularly affecting small and medium enterprises. He called for measures in the budget to boost investment and job creation, proposing a 2.5 percentage point cut in corporate tax for both listed and non-listed companies, and the elimination of the cash transaction condition.
Rahman also suggested the implementation of a “Unified Taxpayer Profile” to streamline tax, VAT, and customs systems, aiming to reduce complexity and minimize harassment of taxpayers.
Golam Mainuddin, chairperson of Apex Footwear Limited, pointed out that compliant taxpayers still face a disproportionately high tax burden. Habibullah N Karim, senior vice-president of MCCI, underscored the need to rethink the country’s tax system, citing that high tax rates often deter compliance.
Malik Mohammed Sayeed, CEO of Square Toiletries Limited, advocated for maintaining tax exemptions on sanitary napkins and diapers, as well as reducing taxes on imported raw materials to around 10 percent to support industries dependent on such inputs.
Asif Ibrahim, former president of the Chittagong Stock Exchange, highlighted the importance of protecting domestic investors to attract foreign investment, emphasizing the necessity of financial sector reforms and supporting private sector credit growth.
Former NBR chairman Muhammad Abdul Mazid stressed the importance of policy predictability, emphasizing the need for clarity on tax rates well in advance to aid business planning.
ERF President Doulot Akter Mala cautioned against setting overly ambitious revenue targets in the upcoming budget, citing concerns of a potential revenue shortfall of nearly Tk 100,000 crore in the current fiscal year.
