DHAKA, June 11, 2026 (BSS) – The Institute of Chartered Accountants of Bangladesh (ICAB) has welcomed the national budget for FY 2026-27, terming it strategic, forward-looking and timely, while also raising concerns over deficit financing, taxation measures, and regulatory complexity.

In his brief comments, ICAB President N K A Mobin FCA congratulated the government led by the Prime Minister Tarique Rahman and appreciated Finance Minister Amir Khosru Mahmud Chowdhury MP for presenting a budget sized at TK  9,38,000 crore, equivalent to 13.7 percent of GDP.

He noted that despite global economic pressures—including geopolitical tensions, inflation, and investment slowdown—the government’s decision to implement a development budget of Tk 3,16,075 crore, including TK  3,00,000 crore under the Annual Development Programme, was a positive signal for growth.

ICAB expressed concern that TK  112,000 crore of development spending is expected to be financed through bank borrowing, warning that it could reduce credit availability for the private sector and hinder investment.

The organization also cautioned that new taxes, including a 0.2 percent levy on retail businesses and 0.5 percent on agricultural products, may contribute to inflationary pressures.

ICAB welcomed several proposed reforms in the Income Tax Act, including fixation of tax rates for five years, removal of minimum tax provisions, and expansion of self-assessment systems, start up tax incentives, and mandatory Withholding Identification Number (WIN) for compliance improvement.

The institute also praised the National Board of Revenue (NBR) and ICAB collaboration on the Document Verification System (DVS) and corporate tax return digitalisation, saying it would help expand the tax base and improve revenue collection.

ICAB appreciated VAT-related reforms such as excluding labour from input definition, VAT on actual value addition for exempt goods, and exemptions for content creators and freelancers. Reduced appeal deposit requirements and simplified dispute resolution mechanisms were also welcomed.

Under the Customs Act 2023, ICAB highlighted the introduction of the “Importer on Record” framework, Free Trade Zones, operational flexibility, and reduced appeal deposits as measures that could improve trade efficiency and ease business operations.

ICAB urged the government to reconsider provisions such as the 30 percent dividend distribution requirement for listed companies, advance tax collection from retailers, and higher minimum turnover tax burdens. It also raised concerns over VAT return restructuring and mandatory BIN requirements for small businesses.

ICAB concluded that the budget is broadly business-friendly and has the potential to support Bangladesh’s transition toward a developed economy. 

The institute thanked the government for incorporating several of its recommendations, noting that the reforms could enhance revenue, employment, and economic stability.