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Post-Budget Press Meet
Dhaka, 18 June 2026: Dhaka, 18 June 2026: 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 Dhaka. 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.
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, FICCI President 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, Ms. 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.
Referring to the revenue targets outlined in the budget, Ms. Chowdhury observed that budget deficits have often been addressed through higher indirect taxes and supplementary duties, placing additional burdens on compliant taxpayers. This, she noted, contributes to a higher Effective Tax Rate (ETR) across several sectors compared to competing economies. She emphasized the importance of creating a more balanced, predictable, and investment-friendly tax regime.
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, FICCI 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.
About FICCI:
Foreign Investors’ Chamber of Commerce & Industry (FICCI) the apex chamber of multinational companies has been working as the development frontier of Bangladesh by creating significant footprints in economic growth since its journey started in 1963. As a leading chamber, FICCI represents Foreign Investors from Thirty-five (35) countries across the globe in Twenty-one (21) sectors in Bangladesh. In its six decades of excellent journey, around 210 member companies of this chamber are contributing around 30% internal revenue of the government and representing more than 90% inward FDI in Bangladesh.
For further information Please contact Ms. Subarna Mostafa, Assistant Manager, Communication and PR, Contact No: +8801728045819 and e-mail: subarna.mostafa@ficci.org.bd
Best Regards,
T.I.M Nurul Kabir
Executive Director, FICCI
Mobile no: +880 1711-563977,
Email: info@ficci.org.bd
