Photo: DCCI

DHAKA, June 11, 2026 (BSS) - The Dhaka Chamber of Commerce and Industry 
(DCCI) today described the proposed national budget for fiscal year 2026-27 
as business and investment-friendly, while emphasizing that its success would 
depend on effective implementation of reforms and achievement of proposed 
revenue targets.

Speaking at a press briefing on DCCI's initial reaction to the proposed 
budget at the chamber's auditorium in the capital, DCCI President Taskeen 
Ahmed said the budget contains several positive measures aimed at stimulating 
investment, industrial growth and tax compliance.

He noted that the proposed budget size of Taka 9.38 lakh crore, a 19.04 
percent increase over the previous fiscal year, reflects the government's 
development ambitions. 

However, he cautioned that the targeted revenue growth of 30.34 percent would 
be highly challenging under the prevailing economic conditions.

Ahmed also expressed concern over increased reliance on borrowing to finance 
the budget deficit, saying it could hamper the recovery of the banking sector 
and constrain credit flow to private-sector investment.

Welcoming the proposed Annual Development Programme (ADP) of Taka 3 lakh 
crore, up by 30 percent from the previous year, he said the low 
implementation rate of 36.19 percent in the current fiscal year highlights 
the need for stronger execution capacity.

On taxation, the DCCI president praised the government's decision to allow 
withholding tax to be treated as advance tax, calling it a longstanding 
demand of the business community. 

He also welcomed the reduction of withholding tax on industrial raw materials 
to 4 percent, continuation of a 0.5 percent withholding tax on 60 essential 
commodities, and tax incentives for healthcare, renewable energy and electric 
vehicle sectors.

The chamber appreciated the government's move to widen the tax net without 
raising VAT rates and introduce quarterly online VAT return submissions. 

However, it expressed disappointment over keeping the tax-free income 
threshold unchanged despite inflation and setting the highest personal income 
tax rate at 35 percent.

DCCI urged the government to raise the tax-free income threshold to Taka 5 
lakh.

The chamber also welcomed customs duty reductions and advance tax exemptions 
on imports of point-of-sale (POS) machines, describing the measures as 
important steps towards promoting cashless transactions.

Regarding the CMSME sector, DCCI praised the allocation of Taka 5,000 crore 
from Bangladesh Bank's Taka 60,000 crore stimulus package and welcomed tax 
relief measures for small entrepreneurs, women and persons with disabilities. 
It said the introduction of e-loans and simplified tax procedures would 
support small businesses and improve compliance.

The business body further said tax reductions on electric vehicles, mobile 
phones, refrigerators, air conditioners and technology products would 
encourage domestic industrial investment, while the planned establishment of 
Free Trade Zones would help attract trade and investment.

DCCI also welcomed reforms aimed at improving the ease of doing business, 
including mandatory single-window services, faster issuance of work permits 
and investor visas, lower withholding tax on foreign loan interest payments, 
and withdrawal of provisions disallowing expenses due to withholding tax 
deduction issues.

On energy, the chamber appreciated VAT exemptions and tax benefits for 
electric vehicles and charging infrastructure but said proposed measures for 
gas exploration and well drilling were insufficient to meet growing energy 
demand.

It called for the formulation of a long-term energy pricing framework through 
consultations with stakeholders to ensure energy security and attract 
investment in the sector.

DCCI Senior Vice-President Razeev H. Chowdhury, Vice President Md. Salem 
Sulaiman and other board members were present at the event.