DHAKA, June 18, 2026 (BSS) - The Foreign Investors' Chamber of Commerce and 
Industry (FICCI) today shared its observations on the National Budget FY2026-
27 at a Post-Budget Press Meet held at its office in the city. 

While acknowledging the Government's efforts to maintain economic stability 
amid global and domestic challenges, FICCI emphasized that sustainable 
revenue growth and increased investment will require structural reforms, 
policy predictability, and a more competitive business environment, said a 
press release.

As Bangladesh advances toward LDC graduation and seeks to attract greater 
domestic and foreign investment, FICCI stressed the need to broaden the tax 
base, reduce the cost of doing business, accelerate digitalization in tax 
administration, and ensure a level playing field.

The Chamber's recommendations to strengthen revenue mobilization, improve 
compliance, facilitate trade, and boost investor confidence were presented by 
Rupali Haque Chowdhury, President of FICCI, at the press meet.

Speaking at the press meet, Rupali Haque Chowdhury described the proposed 
budget as positive and relatively predictable. 

She welcomed the increased allocation for marginalized communities under 
social protection programmes, noting that effective implementation of these 
initiatives would significantly improve the quality of life of vulnerable 
populations.

She also appreciated the substantial allocations for the education and health 
sectors, stating that these investments would play a vital role in 
strengthening Bangladesh's human capital in the long term. 

While acknowledging the country's continued reliance on remittance inflows, 
she emphasized the need for greater focus on education and skills development 
to build a more productive workforce. 

She further urged the government to place stronger emphasis on vocational and 
employment-oriented education.

Welcoming the incentives announced for green initiatives and solar energy, 
Rupali Haque Chowdhury said these measures would help reduce Bangladesh's 
dependence on fossil fuels and lessen the impact of global oil price 
volatility on the economy and power sector. 

She described the initiative as a forward-looking step that would support 
sustainable and environmentally responsible growth.

Highlighting inflation as the country's most pressing economic challenge, she 
noted that the current government had inherited a fragile economy and set a 
target of reducing inflation from around 9.5 percent to 7.5 percent. 

However, she stressed the need for a clear strategy and implementation 
roadmap to achieve this objective.

She also welcomed the government's initiative to reduce its reliance on 
commercial bank borrowing by exploring alternative sources of financing. 

However, she underscored the need for clear policy direction and a well-
defined implementation framework to ensure the effectiveness of such 
measures.

The FICCI President emphasized that expanding the tax net should remain a top 
priority. 

The Chamber recommended bringing non-filers under the tax system, making 
Proof of Submission of Return (PSR) mandatory for license and permit issuance 
and renewal, introducing PSR requirements for VAT return submissions, and 
implementing a 360-degree cross-checking mechanism between suppliers' tax 
returns and withholding tax records.

Snehasish Barua FCA, Tax Consultant of FICCI, presented the Chamber's 
detailed observations. 

To improve efficiency and transparency, he urged the National Board of 
Revenue (NBR) to adopt a comprehensive automation roadmap integrating 
Customs, VAT, and Income Tax systems, while ensuring interoperability with 
relevant government agencies.

The Chamber also called for continuous enhancement of existing digital 
platforms to strengthen revenue mobilization and fiscal transparency.

FICCI highlighted the importance of a fair and competitive business 
environment, proposing the establishment of a dedicated Data and Analytics 
Team within NBR to analyze market share against revenue share across 
industries as a quick-win initiative to improve the tax-to-GDP ratio.

The Chamber also recommended moving toward a unified VAT rate, gradually 
removing input tax credit restrictions and VAT Deducted at Source (VDS), and 
establishing a more standardized VAT regime.

To attract and retain investment, FICCI called for a roadmap to optimize 
Bangladesh's Effective Tax Rate (ETR), including lower corporate income tax 
rates through the reintroduction of cashless transaction conditions for 
unlisted companies, a gradual transition to a fully cashless economy within 
five years, phased reduction of minimum tax on sales, withdrawal of 
inadmissible expense provisions, and a review of the Personal Income Tax 
(PIT) structure considering inflation, investment, and employment generation.

The Chamber also underscored the need for customs reforms to enhance trade 
competitiveness. Recommendations included assessing import duties based on 
actual transaction or global reference values, ensuring proper classification 
of raw materials and intermediate goods, facilitating smoother customs 
clearance for capital machinery, and gradually eliminating non-tariff 
barriers in preparation for LDC graduation.

In addition, FICCI urged the government to conduct Time Release Studies (TRS) 
to expedite cargo clearance, adopt a uniform and moderate price increase of 
no more than 15 percent across all industry tiers to maintain a non-
discriminatory business environment, and withdraw the proposed Supplementary 
Duty (SD) increase on raw materials.

FICCI reiterated its commitment to working closely with policymakers and 
stakeholders to strengthen revenue collection, improve the ease of doing 
business, and position Bangladesh as a more competitive destination for local 
and foreign investment. 

FICCI Vice President Mohammad Iqbal Chowdhury, Director Habibur Rahman 
Bhuiyan, Executive Director T I M Nurul Kabir, and members of the Chamber's 
Tax Committee were also present at the press meet.