The Dhaka Chamber of Commerce and Industry (DCCI) on Thursday described the proposed national budget for fiscal year 2026-27 as business and investment-friendly, while emphasising 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 Tk 9.38 lakh crore, a 19.04% increase over the previous fiscal year, reflects the government’s development ambitions.

However, he cautioned that the targeted revenue growth of 30.34% 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 Tk3 lakh crore, up by 30% from the previous year, he said the low implementation rate of 36.19% 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%, continuation of a 0.5% 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%.

DCCI urged the government to raise the tax-free income threshold to Tk 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 Tk5,000 crore from Bangladesh Bank’s Tk60,000 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.