Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Saturday welcomed the proposed national budget for fiscal year 2026-27, describing it as pragmatic and implementable, while flagging revenue mobilisation and efficient execution as the two most critical challenges ahead.
In a written reaction to the Tk 9,38,000 crore budget, the country's largest ever and 18.7 per cent higher than the outgoing fiscal year, the apex trade body extended its congratulations to the Prime Minister and Finance Minister, noting that the budget gives priority to economic stability, investment, employment, production and social justice.
“The size of the budget is large but implementation is not impossible, what is needed is foresight, efficiency and transparency,” FBCCI said in its statement on Saturday.
FBCCI expressed optimism over the government's adoption of the "3R" framework: Recovery and Stabilisation, Restoration and Reconstruction, as the guiding economic strategy, saying it would help restore macroeconomic stability, boost investment and foster inclusive and sustainable growth.
The body also supported GDP growth and inflation targets set at 6.5 per cent and 7.5 per cent respectively, expressing hope that disciplined fiscal management would help ordinary citizens regain purchasing power.
FBCCI acknowledged that the total revenue target of Tk 6,95,000 crore, equivalent to 10.2 per cent of GDP, with the National Board of Revenue (NBR) assigned Tk 6,04,000 crore, represents a formidable challenge given current domestic and global economic conditions.
The federation urged structural reforms at NBR and a revenue management system conducive to growth, trade and investment to meet the target.
On the budget deficit of Tk 2,43,000 crore, 3.6 per cent of GDP, FBCCI cautioned the government to exercise restraint in borrowing from the banking sector, as it crowds out private sector credit and adversely affects investment and employment. It recommended greater reliance on concessional external financing at reasonable interest rates.
The total interest payment burden, Tk 1,05,000 crore in domestic interest and Tk 22,500 crore in foreign debt servicing was described as a significant fiscal pressure.
In a wide-ranging set of recommendations, FBCCI called on the government to focus on: Activation of investment-friendly economic zones; export diversification and new market exploration; human resource development in IT and electronics; reduction of administrative red tape and cost of doing business.
Besides, strengthening of the capital market and expansion of the bond market; improved accountability in ADP implementation; interest rate reduction and banking sector reform; uninterrupted power and energy supply; logistics and supply chain efficiency; and development of legal frameworks for free trade zones were among the recommendations.
FBCCI welcomed several budget provisions it said reflected its own prior proposals, including: mandatory online VAT return filing, quarterly VAT submission, online income tax return and refund systems, online single-window services, and an expanded plug-and-play industrial facility.
The body also praised the raising of the tax-free income ceiling from Tk 3,50,000 to Tk 3,75,000 with provisions for gradual future increases, though it urged the government to maintain the 5 per cent tax slab and reduce the top tax rate from 35 per cent to 25 per cent.
Welcoming the five-year lock-in on corporate tax rates, FBCCI also sought a 2.5 per cent reduction for listed companies to enhance competitiveness, and proposed lowering the minimum turnover tax on sales from 1 per cent to 0.5 per cent given the current slowdown.
Among specific measures appreciated, FBCCI highlighted: the reduction of advance income tax on industrial raw material imports from 5 per cent to 4 per cent; reduction of source taxes on basic agricultural commodities including rice, wheat, potato, onion, garlic, ginger, salt, sugar and edible oil to 0.5 per cent; complete withdrawal of the 5 per cent regulatory duty on import of dates and all cooking spices; and reduced withholding tax on foreign loan interest for industrial investment from 20 per cent to 10 per cent.
The federation also welcomed the full import duty waiver, along with VAT and supplementary duty on laptops, desktop computers, servers, printers and monitors, calling it a major push for IT sector development.
On social protection, FBCCI commended free train travel for senior citizens above 65 years of age, a 25 per cent metro rail discount, and expansion in the number and coverage of social safety net beneficiaries.
FBCCI welcomed the government's Tk 60,000 crore “Stimulus Package 2026” for easing credit flow to the private sector, along with a Tk 2,000 crore allocation for SME development through IDCOL, BIFFL and the SME Foundation. An additional Tk 500 crore allocation for women and youth entrepreneurship was termed a positive step.
Tax and VAT exemptions for startup companies — including zero turnover tax, and full VAT exemption on local purchases and premises rental for startups were also praised.
The proposed 20 per cent renewable energy target by 2030 and zero-import-duty on solar energy equipment until 2035 received FBCCI's support as part of a push for a sustainable energy framework.
On the gold and jewellery sector, FBCCI praised the reduction of source tax on gold imports from 5 per cent to 0.5 per cent under the new bonded warehouse regulations, and supported the proposed replacement of 5 per cent VAT on jewellery services with a fixed charge of Tk 2,500 per unit.
FBCCI said it is currently reviewing the Finance Bill and related income tax, VAT and customs notifications in consultation with its member organisations, and will submit a comprehensive set of post-budget recommendations to the government after the review is complete.