United News of Bangladesh

The Foreign Investors' Chamber of Commerce and Industry (FICCI) on Thursday urged the government to implement sweeping structural reforms, including automated tax administration and a broadened tax base to maintain a competitive investment climate ahead of Bangladesh's LDC graduation. While acknowledging the proposed national budget for the fiscal year FY2026-27 as positive and relatively predictable, the apex chamber of multinational companies emphasised that sustainable revenue growth will require a shift away from over-relying on compliant taxpayers. The observations were shared by FICCI President Rupali Haque Chowdhury at a post-budget press briefing held at the chamber’s office in Dhaka on Thursday. To address fiscal deficits without adding extra burdens on existing compliant businesses, FICCI emphasized that expanding the tax net must remain a top policy priority. The chamber recommended making the Proof of Submission of Return (PSR) mandatory for all license renewals, permit issuances, and VAT return submissions. It also called for a 360-degree cross-checking mechanism between suppliers' tax returns and withholding tax records to curb evasion. Presenting the detailed technical observations, FICCI Tax Consultant Snehasish Barua urged the National Board of Revenue (NBR) to adopt a comprehensive automation roadmap that fully integrates Customs, VAT, and Income Tax systems. As an immediate "quick-win" strategy to improve the tax-to-GDP ratio, the chamber proposed establishing a dedicated Data and Analytics Team within the NBR to analyze market share against revenue share across industries. FICCI voiced concerns that recurrent hikes in indirect taxes and supplementary duties have pushed the Effective Tax Rate (ETR) in several domestic sectors much higher than in competing economies. To retain and attract foreign direct investment (FDI), the chamber demanded a clear roadmap to optimize the ETR. Key recommendations included: lowering corporate income tax rates by reintroducing cashless transaction conditions for unlisted companies, transitioning the country to a fully cashless economy within the next five years, gradually reducing the minimum tax on sales and withdrawing inadmissible expense provisions, reviewing the Personal Income Tax (PIT) structure to cushion taxpayers against inflation and easing Trade and Customs Bottlenecks. In preparation for LDC graduation, the chamber underscored the need for urgent customs reforms to boost trade competitiveness. FICCI recommended assessing import duties based on actual transaction values or global reference benchmarks, simplifying customs clearance for capital machinery, and carrying out regular Time Release Studies (TRS) to speed up cargo clearance. The chamber also urged the government to withdraw the proposed Supplementary Duty (SD) increases on industrial raw materials and adopt a uniform, moderate price adjustment cap of no more than 15 percent across all industry tiers to maintain a non-discriminatory business ecosystem. Rupali Chowdhury also lauded the fiscal incentives announced for green initiatives and solar energy, noting that the forward-looking strategy would insulate the domestic power sector from global oil price volatility. However, pointing to the government's inherited inflation challenges, the FICCI chief stressed that while the target to cool inflation down from 9.5 percent to 7.5 percent is commendable, the government must provide a transparent, step-by-step implementation roadmap to achieve it. FICCI Vice President Mohammad Iqbal Chowdhury, Director Habibur Rahman Bhuiyan, and Executive Director T I M Nurul Kabir were also present at the briefing. Representing foreign investors from 35 countries, FICCI's 210 member companies currently generate around 30 percent of the government's internal revenue and represent over 90 percent of inward FDI in Bangladesh.

Women Entrepreneurs Association of Bangladesh (WEAB) on Thursday described the proposed national budget for fiscal year 2026-27 as timely, realistic and inclusive, saying it has been designed to address current economic challenges and ensure sustainable development. .The observation came at a "WEAB Budget Review Press Conference" held at Anchor Tower in the capital, where the organisation reviewed key aspects of the recently announced national budget, its potential impact, challenges and recommendations. Speakers at the event said the budget sets clear economic targets, including achieving 6.5 percent economic growth and reducing inflation to 7.5 percent. They noted that the budget places importance on creating new entrepreneurs, expanding small and medium enterprises (SMEs), strengthening social safety net programmes and building a foundation for long-term economic stability and sustainable development. WEAB President Nasreen Fatema Awal said the budget has been formulated with the goal of building an inclusive, equitable and participatory economy, with special emphasis on increasing the economic participation of women, youth and marginalised groups. She welcomed the allocation of Tk 400 crore in the information and communication technology sector for startup development, women entrepreneurs and youth entrepreneurship in the 2026-27 fiscal year, saying it would help enhance the capabilities of women entrepreneurs, expand businesses through technology and create new entrepreneurs. Nasreen also positively viewed the government's announcement of a Tk 60,000 crore incentive package aimed at increasing investment and employment. She said allocating a specific portion of the fund on easy terms for women-led SMEs, cottage industries, rural women entrepreneurs and new business ventures would further enhance women's contribution to the economy. Meanwhile, Prime Minister's Office National Cell member and technical expert on the 25 crore tree plantation programme, Jamail Basir JB, said the government plans to establish 10,000 nurseries and create employment opportunities for 600,000 people under a five-year programme to plant 25 crore trees. He said more than 400,000 of those jobs would be reserved for women, particularly from marginalised communities. "We want organisations like WEAB to work with us because it is difficult for us alone to reach all these women," he said. Jamail said rural women would be encouraged to establish small home nurseries with 50 to 100 saplings, which the programme would purchase from them, providing direct financial benefits. They would also be involved in tree plantation and maintenance activities, creating additional income opportunities. He invited WEAB to join the programme and help connect women from marginalised communities with the initiative. WEAB placed five recommendations before the government: ensuring effective implementation of separate quotas and easier collateral requirements for women entrepreneurs in bank loans and SME financing; launching special programmes at district and upazila levels to improve market access, e-commerce capabilities and product branding; expanding training on technology, digital marketing, export readiness and financial management; ensuring preferential participation of women entrepreneurs in public procurement; and reducing tax-related complexities and simplifying business registration procedures.

Bangladesh Jewellers Association (BAJUS) has for the first time determined the prices of gold ornaments inclusive of VAT under a new pricing system, setting the price of 22-carat gold ornaments at Tk 232,930 per bhori (11.664 grams), effective from Thursday morning. Following the government's proposal in the national budget for FY2026-27, the previous 5 percent VAT has been replaced with a fixed VAT of Tk 2,500 per bhori. As a result, the price of 22-carat gold ornaments has decreased by Tk 9,013 per bhori under the new method. The decision was taken at a meeting of the BAJUS Standing Committee on Pricing and Price Monitoring, and the revised rates came into effect from 10:00am on Thursday. Previously, on June 15, BAJUS had set the price of 22-carat gold at Tk 230,422 per bhori. After adding 5 percent VAT, the price of gold ornaments stood at Tk 241,943 per bhori. Under the new system, the price of 21-carat gold ornaments has been set at Tk 222,491 per bhori, reflecting a decrease of Tk 8,491. The price of 18-carat gold ornaments has been fixed at Tk 191,056 per bhori, down by Tk 6,920, while the price of traditional-method gold ornaments has been set at Tk 156,064 per bhori, a reduction of Tk 5,170. BAJUS said the new prices will remain effective at all jewellery shops until further notice. However, making charges will vary depending on the design of ornaments. As VAT has already been included in the selling price of gold ornaments, jewellers will not be allowed to collect VAT separately from customers. A decision regarding VAT on silver ornaments will be announced shortly. Although VAT-inclusive pricing has been introduced for gold ornaments, the previous VAT system will remain in place for silver. Customers will have to pay an additional 5 percent VAT on the fixed prices of silver ornaments. With the applicable VAT, the price of 22-carat silver ornaments will stand at Tk 5,365 per bhori, while 21-carat silver ornaments will cost Tk 5,132 per bhori. The prices of 18-carat and traditional silver ornaments have been set at Tk 4,432 and Tk 3,324 per bhori respectively.

Daraz has reaffirmed its long-term commitment to Bangladesh, saying it continues to operate normally and remains focused on sustainable growth, amid recent media reports regarding its investment and operational outlook. “Daraz remains firmly committed to Bangladesh and has no plans to exit the market. Bangladesh continues to be an important market for the company, and we are focused on sustainable growth and contributing to the development of the country’s digital economy,” it said in a statement on Wednesday. The company said some recent characterisations do not accurately reflect its strategic priorities or day-to-day operations. It said it remains committed to investing in technology-driven solutions aimed at improving operational efficiency and enhancing customer experience, while building a scalable and sustainable digital commerce ecosystem in the country. Highlighting its continued business momentum, the company said it onboarded more than 7,000 new sellers over the past year, reflecting the steady expansion of its marketplace and its ongoing efforts to create opportunities for local entrepreneurs and small businesses. It said the growth of its seller network has contributed to job creation and income-generation opportunities across the broader e-commerce ecosystem. The company added that, as part of regular business operations, it periodically reviews its organisational structure to ensure alignment with long-term strategic priorities and business objectives. It further noted that Bangladesh’s growing internet penetration and increasing smartphone adoption beyond major urban centres continue to create significant opportunities for the e-commerce sector. Daraz said companies with strong operational discipline and a long-term vision are well-positioned to capitalise on the country’s expanding digital economy and drive future growth.  

Metropolitan Chamber of Commerce and Industry (MCCI) on Wednesday cautioned that the government's ambitious revenue mobilisation target for fiscal year 2026-27 could expose taxpayers to harassment at the field level as the National Board of Revenue (NBR) collected only 65 percent of its revised target in the outgoing fiscal year. MCCI President Kamran T. Rahman raised the concern while delivering the welcome address at a post-budget discussion jointly organised by MCCI, Standard Chartered Bangladesh and the Policy Research Institute of Bangladesh (PRI) at the M. Anis Ud Dowla Conference Hall of MCCI's Gulshan office in the city. The budget has set a revenue collection target of Tk 6.95 lakh crore, which represents a growth of over 18.2 percent compared to the current fiscal year's revised target. “NBR managed to collect only Tk 3.27 lakh crore, or 65 percent of the revised target, up to April of FY2025-26,” Kamran said. “Achieving the new revenue target without comprehensive structural reforms will be extremely difficult, and the pressure to do so may lead to harassment of taxpayers at the field level.” He, however, acknowledged that the proposed budget, the first full-year budget of the newly elected government contains several business-friendly reform proposals, including modernisation of tax and revenue administration, digitalisation, and ease of doing business measures. The MCCI president stressed that the key objective of the day's forum was not to examine isolated budget proposals, but to explore how the budget can be successfully implemented by broadening the tax base rather than imposing additional burdens on specific sectors or existing taxpayers. “The national budget is not merely a statement of government income and expenditure, it is a reflection of a country's economic priorities, development strategy, and future direction,” Kamran said. The budget comes at a time when the global economy continues to grapple with geopolitical uncertainty, trade tensions, and structural economic challenges, he added. He said MCCI remains committed to fostering open and constructive dialogue among the government, private sector, and other stakeholders on key national economic issues. Kamran expressed hope that the deliberations from the forum, held ahead of the budget's final approval in parliament, would enrich the policymaking process and provide actionable guidance to the relevant authorities. 

In a bid to regain public trust, Islami Bank Bangladesh PLC on Monday announced a special financial assistance program for depositors who incurred heavy losses by prematurely closing their savings and term-deposit accounts during the recent banking crisis. According to a circular issued by the bank management, the special facility will apply to clients who closed or cashed out their various deposit schemes—including MTDR, MSB, MMPDS, and MSSA accounts—prematurely between June 1 and June 15. The bank announced that affected customers will be given a window of the next seven working days to reopen their closed accounts. If reopened within this timeframe, the bank management will waive all associated fees and administrative charges considering the extraordinary situation. Furthermore, these accounts will be treated as continuously active, allowing depositors to enjoy their original profit rates and previously committed benefits without any disruption. Banking sector insiders view this move as highly customer-friendly. Amid intense panic, rumors, and leadership uncertainties surrounding the country's largest Shariah-based commercial lender over the last two weeks, thousands of clients rushed to branches to break their term deposits and savings schemes ahead of maturity, suffering significant financial losses and forfeiting accumulated profits. The special initiative aims to mitigate those financial losses and restore depositor confidence following the central bank's direct intervention in dissolving the bank's controversial board and injecting emergency liquidity. The bank management urged clients not to be swayed by unverified anxieties and advised them to contact their respective branches within the designated period to avail themselves of the policy. Financial analysts believe the move will play a positive role in rebuilding the bank's relationship with its clients and safeguarding long-term public deposits.

Gold prices in Bangladesh have surged by Tk 12,072 per bhori over two consecutive days, reversing a prolonged declining trend, as the Bangladesh Jewellers Association (BAJUS) cited rising pure gold prices in the local market. BAJUS raised the price of 22-carat gold by Tk 5,482 per bhori on Monday, setting the new rate at Tk 2,30,422. The revision took effect from 10:00am. The hike follows a Tk 6,590 increase announced on Sunday, when the rate was fixed at Tk 2,24,940 per bhori for 22-carat gold. BAJUS said the adjustments reflect an increase in the price of tejabi (pure) gold in the domestic market, which necessitated a comprehensive revision of rates. Under the revised pricing, the per-bhori (11.664 grams) rates now stand as follows: 22-carat at Tk 2,30,422; 21-carat at Tk 2,19,983; 18-carat at Tk 1,88,549; and traditional (sanatan) method gold at Tk 1,53,557. Gold prices in Bangladesh have been adjusted 75 times so far in 2026, raised on 39 occasions and reduced on 36. Alongside gold, silver prices also increased on Monday. The 22-carat silver rate rose by Tk 233 per bhori to Tk 5,365. Other silver rates: 21-carat at Tk 5,132, 18-carat at Tk 4,432, and traditional method at Tk 3,324 per bhori. Silver pricing has been revised 46 times in 2026 so far, with 24 increases and 22 reductions. 

National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan on Sunday said that unprecedented steps have been taken in the proposed budget for fiscal year FY2026-27 to create a deregulated environment for businesses. "For a long time, export-oriented businesses have been demanding the expansion of bonded warehouse facilities. Previously, those who did not own a bonded warehouse faced numerous complications in collecting raw materials from bond-facilitated institutions. The new budget has eliminated these limitations," the NBR chief said. He made the remarks as the chief guest while addressing a seminar titled "Analysis of Finance Bill 2026-27" at the Economic Reporters' Forum (ERF) auditorium in the capital on Sunday afternoon. The NBR Chairman explained that apparel exporters with bonded warehouses can now smoothly sell raw materials to other exporters who lack such facilities. "This decision will immensely benefit the country's backward linkage industries and enhance the capability of local industries," he added. He further noted that the previous continuous bond facility was restricted, requiring approval from the commissionerate to import raw materials for another institution. This facility has now been expanded to the inter-commissionerate level. Furthermore, bond licenses will now be accessible to entrepreneurs across any sector upon application, moving away from the previous practice where only a few selected sectors enjoyed the privilege. For businesses that do not wish to take a bond license but are interested in duty-free imports, the NBR has introduced a new option allowing them to import duty-free raw materials against bank guarantees, the Chairman announced. Highlighting reforms in the Authorized Economic Operator (AEO) facility, which allows businesses fast-track customs clearance without regular physical inspections at ports, the NBR chief said that the mandatory requirement of submitting audit reports has been relaxed. This relaxation aims to encourage more businesses to apply, as audit reports are often delayed outside the taxpayers' control. The NBR Chairman also disclosed a major revenue-protection initiative, stating that the revenue board will introduce QR codes on cigarette packets to verify tax compliance. He revealed that around 15 percent of cigarettes in the market currently go untaxed due to false manufacturing or import declarations. "Once the QR codes are implemented on cigarette packets, the scope for tax evasion will be eliminated, enabling the state to realize an additional Tk 2,000 crore in revenue," Dr. Khan stated. The seminar was presided over by ERF President Doulat Akhter and moderated by the organization's General Secretary Abul Kashem. NBR Second Secretary (VAT) Badruzzaman Munshi and First Secretary (Customs Policy) Tareq Hassan, among other high officials, were also present at the event.

Bangladesh Bank (BB) has provided an emergency liquidity support of Tk 2,500 crore for Islami Bank Bangladesh PLC to help the Shariah-based lender mitigate its severe cash crunch and resume suspended clearing operations. The central bank approved the liquidity support on Sunday, allocating the special fund directly into Islami Bank’s current account maintained with the BB, according to sources in both institutions. Following the financial injection, the bank's halted cheque clearing system has resumed. According to a top executive at Islami Bank, the bank has been facing an exceptional spike in cash demand. "Deposits are almost non-existent at the moment, while everyone is rushing to withdraw their funds," the official said on condition of anonymity. The liquidity strain escalated further following recent leadership shifts and administrative disputes. Before Eid-ul-Azha holidays on May 24, bank's then-chairman M Zubaidur Rahman resigned. Later that evening, former Bangladesh Bank Deputy Governor Md Khurshid Alam was appointed as an independent director and new chairman of the bank. Currently, five independent directors on Islami Bank's board, including the chairman, are central bank appointees. Following these changes, protests broke out under the banner of the "Islami Bank Sachetan Grahak Forum", pressing a seven-point demand that includes the removal of the new chairman. The unfolding situation at Islami Bank also triggered heated debates between treasury and opposition benches in Parliament. Amid growing public discourse, panic withdrawals intensified among clients, prompting Islami Bank to formally seek Tk 10,000 crore in emergency financial assistance from the central bank. Sunday's Tk 2,500 crore fund injection marks the first major deployment to stabilise the institution.

The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has welcomed Bangladesh's largest-ever national budget for FY 2026–27 as a bold initiative to rebuild the economy, while flagging serious concerns over the achievability of an ambitious revenue collection target and the risk of taxpayer harassment without meaningful structural reforms. In a press statement issued on Saturday, MCCI President Kamran T. Rahman congratulated Finance and Planning Minister Amir Khosru Mahmud Chowdhury for presenting the 55th national budget, the first of the newly elected government, amounting to Tk 938,000 crore, equivalent to 13.73 percent of GDP. The chamber described the Tk 695,000 crore revenue collection target,18.20 percent higher than the revised target of the outgoing fiscal year as ambitious and expressed doubt over its feasibility. Of the total, Tk 604,000 crore has been assigned to the National Board of Revenue (NBR), representing a 20.08 percent increase over the revised target. MCCI noted that the NBR collected only Tk 326,928 crore, about 65 percent of its revised target through April of the current fiscal year, while ADP implementation stood at just 41.41 percent during the July–April period. “Without structural reforms, efforts to meet this target may lead to increased pressure and harassment of taxpayers,” the chamber warned, adding that additional taxation could raise prices of essential commodities and burden ordinary citizens. MCCI expressed concern over a sharp decline in total investment, which fell to 27.93 percent of GDP in FY 2025–26, the lowest in a decade. Private investment accounted for only 21.53 percent, with public investment at 6.40 percent. The chamber said the investment slump was eroding employment opportunities and heightening poverty risks. The chamber welcomed a Tk 144,338 crore allocation for social safety net programmes, up Tk 17,607 crore or 13.89 percent from the previous fiscal year, including dedicated funds for the Family Card Programme (Tk 14,500 crore), Farmer Card Programme (Tk 1,062.50 crore), and religious allowances (Tk 1,081 crore). MCCI also praised plans to raise education spending from 1.39 percent to 2.0 percent of GDP and health expenditure from 0.58 percent to 1.01 percent, calling them reflective of long-term commitment to human capital development. Among the welcome measures, MCCI commended proposed reforms to Tax Deducted at Source (TDS), reduced mandatory deposit requirements for tax appeals at tribunal and high court levels, quarterly VAT return filing, paperless VAT administration, and inclusion of labour within the VAT input definition. However, the chamber raised concerns over the abolition of the 5 percent minimum income tax slab in favour of a 10 percent rate, reduction of individual investment tax rebates from 15 percent to 10 percent, and the proposed increase in the highest tax rate from 30 percent to 35 percent from tax year 2028–29. It also flagged the absence of any proposal to rationalise or reduce the Minimum Turnover Tax on companies. MCCI warned that a proposed data connectivity and information-sharing framework could pose serious threats to data privacy without adequate legal and technological safeguards. Welcoming the Tk 60,000 crore “Stimulus Package 2026,” the BanglaBiz one-stop digital service platform, and expanded FTA, PTA and EPA trade agreements, MCCI said these would play an important role in attracting foreign investment and generating employment. The chamber called for quarterly reviews of budget implementation given prevailing global economic uncertainties, and reaffirmed its commitment to partnering with the government to foster a business-friendly environment. “The success of this mega budget will depend on institutional good governance, a harassment-free tax administration, and maintenance of macroeconomic stability,” the statement concluded.