DHAKA, April 29, 2026 (BSS) - The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has proposed raising the tax-free income threshold to Tk 5 lakh as part of a broader set of recommendations aimed at ensuring macroeconomic stability, expanding the tax base, and fostering a more business-friendly environment in the upcoming national budget for FY2026-27.

The proposals were presented today at the 46th meeting of the consultative committee between the National Board of Revenue (NBR) and FBCCI, held at a hotel in the city.

FBCCI Administrator Md. Abdur Rahim Khan placed the recommendations before Finance Minister Amir Khosru Mahmud Chowdhury and Commerce Minister Khandakar Abdul Muktadir.

Highlighting prevailing global and domestic economic challenges, including geopolitical tensions and Bangladesh's impending graduation from the Least Developed Country (LDC) category, the FBCCI stressed the need for pragmatic fiscal measures to sustain growth momentum.

Under its tax proposals, the apex trade body recommended increasing the individual tax-free income limit to Tk 5 lakh, and to Tk 5.50 lakh for women and senior citizens. 

It also called for reducing the corporate tax rate for non-listed companies from 27.5 percent to 25 percent, with a long-term target of bringing it down to between 20 and 22 percent.

To ease the burden on businesses, the FBCCI suggested lowering the minimum tax rate from 1 percent to 0.5 percent, with a plan for gradual withdrawal.

It further proposed reducing the advance tax on imported raw materials from 2 percent to 1 percent and introducing electronic invoicing systems to enhance transparency and compliance.

The organization also backed the government's target of increasing the tax-to-GDP ratio to 15 percent by 2035 through widening the tax net and improving efficiency in revenue collection.

On the financial sector, the FBCCI emphasized the importance of ensuring the independence of Bangladesh Bank to strengthen regulatory oversight.

It recommended lowering interest rates to maintain competitiveness and proposed establishing separate Large Taxpayer Units (LTU) and Medium Taxpayer Units (MTU) in both Dhaka and Chattogram.

Addressing concerns over illicit financial flows, the FBCCI urged authorities to take stronger measures to prevent money laundering and recover laundered assets.

In support of export growth, the business body proposed maintaining a 0.50 percent source tax for the ready-made garment (RMG) sector and other export-oriented industries for the next five years.

It also called for expanding the Export Development Fund (EDF), making it accessible to all export sectors, and setting up a central bonded warehouse to assist small-scale exporters.

Additionally, the FBCCI recommended providing utility incentives for export-oriented industries, including electricity, gas, and water, to enhance global competitiveness.

Looking ahead, the organization reiterated its vision of transforming Bangladesh into a $1 trillion economy by 2034 and creating 1 crore new jobs within the next five years.

It also emphasized strengthening social safety net programmes by increasing allowances for vulnerable groups such as widows, the elderly, and persons with disabilities.

Furthermore, the FBCCI underscored the importance of investing in emerging sectors, including artificial intelligence-based training, nursing, and language education, to boost overseas employment opportunities.