AdminDhaka, 4 June 2025: The Foreign Investors’ Chamber
of Commerce and Industry (FICCI) acknowledged the Government’s commitment in
the National Budget 2025-26 towards equitable economic transformation and
fiscal consolidation. With a proposed budget size of Tk. 7,90,000 crore (12.7%
of GDP), the government has targeted 6.5% GDP growth and a projected decline in
inflation to 8%, a significant drop of 321 basis points. FICCI views the
budget's reform direction as positive; however, the implementation of certain
tax measures may create unintended burdens on industries and individuals. These
observations were shared by Zaved Akhtar, President of FICCI, at a post-budget
press meet held today at FICCI.
FICCI expressed concern over increased tax burdens on
compliant individuals and businesses. The Chamber noted that under the revised
tax slabs, salaried individuals earning between Tk. 70,000 and Tk. 100,000 per
month may face a 50%-60% higher tax burden, while those earning between Tk.
120,000 to Tk. 175,000 may experience an increase of 20%-30%. This could
significantly reduce disposable income for the fixed-income group, affecting
consumption and quality of life.
FICCI also noted that the increased minimum tax from 0.6%
to 1% for companies and from 0.25% to 1% for individuals would adversely impact
SMEs, loss-making companies and inflation-stricken individuals. For instance, a
company earning no taxable income will still be liable to pay 1% tax on
turnover, creating further strain on struggling entities.
Another point of concern is the imposition of a
discriminatory 27.5% corporate tax rate for listed companies having less than
10% public shareholding. Furthermore, the benefits of reduced rate tax for
companies having cashless transaction have been withdrawn. This, FICCI believes,
goes against the goal of deepening capital markets and attracting quality
listings.
The Chamber also highlighted the steep increase in VAT on
online sales from 5% to 15%, which will likely hinder the growth of
Bangladesh’s emerging digital commerce sector. Similarly, the rise in customs
duty on beverage concentrates from 10% to 15% could negatively impact consumer
prices and industry margins.
FICCI reaffirmed its long-standing recommendation for a
simplified and harmonized VAT system with a single rate and standard input
credit mechanism. The Chamber appreciated the government’s continued push
towards digital transformation through automation in tax administration and
implementation of the National Single Window.
FICCI commended the government’s target to raise Tk.
4,99,000 crore through NBR (88% of total revenue) and welcomed initiatives to
modernize tax administration and separate tax policy from tax collection
functions. However, FICCI emphasized the need for realistic revenue targets and
effective execution plans to avoid creating undue burdens on compliant
taxpayers.
According to projections, GDP growth is expected to rise by
157 basis points from FY24-25, while inflation is forecasted to fall sharply
from double digits to 8% by June 2025. While this presents a positive
macroeconomic outlook, FICCI warned that higher minimum taxes and increased
burdens on corporates and individuals could undercut this recovery trajectory.
FICCI reiterated the importance of inclusive tax policy
reforms, emphasizing the need for a stable and predictable tax environment,
along with a rationalized rate structure that fosters compliance and encourages
investment. The Chamber remains steadfast in its commitment to collaborating
with policymakers to achieve shared economic objectives, attract foreign direct
investment (FDI), and support Bangladesh’s transition to a financially
resilient future. FICCI Advisers and former Presidents Rupali Haque Chowdhury
and Naser Ezaz Bijoy also shared their insights on the Finance Ordinance 2025.
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, e-mail:
subarna.mostafa@ficci.org.bd
Best Regards,
T.I.M Nurul Kabir
Executive Director, FICCI
Email: info@ficci.org.bd,
