DCCI urges tax reforms, investment push in budget proposals for FY27
The proposals were presented today (13 April) at a pre-budget consultation titled “Budget 2026–27: Private Sector Expectations,” held at InterContinental Dhaka, with participation from policymakers, economists and business leaders
The Dhaka Chamber of Commerce and Industry (DCCI) has proposed raising the individual tax-free income threshold to Tk5 lakh and capping the maximum personal income tax rate at 25% as part of its recommendations for the national budget for fiscal year 2026–27.
The proposals were presented today (13 April) at a pre-budget consultation titled "Budget 2026–27: Private Sector Expectations," held at InterContinental Dhaka, with participation from policymakers, economists and business leaders.
Tax reforms and compliance measures
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DCCI recommended setting the corporate tax rate for non-listed companies at 25%, aligning it with listed firms to ensure parity and encourage formalisation.
To improve compliance and transparency, the chamber proposed introducing a fully automated corporate tax return system.
It also suggested integrating the e-TDS platform with the National Board of Revenue (NBR) system to accelerate processing and enhance verification efficiency.
Additionally, DCCI called for the gradual withdrawal of advance tax at the import stage for manufacturers and a reduction for commercial importers.
VAT system overhaul
In the value-added tax (VAT) regime, the chamber proposed abolishing advance VAT and introducing a mobile application to complement the existing online system.
It also recommended implementing a single-step refund mechanism to expedite VAT reimbursements and reduce administrative delays.
Boosting private investment
To stimulate private sector investment, DCCI urged the rationalisation of interest rates and reducing government reliance on domestic bank borrowing.
The chamber also emphasised expanding access to credit through refinancing schemes and credit guarantee programmes to support businesses, particularly SMEs.
Capital market development
DCCI called for strengthening the capital market by increasing initial public offerings (IPOs) and encouraging large corporations and small and medium enterprises to go public.
It also proposed introducing long-term financing instruments such as bonds to diversify funding sources.
Sectoral support ahead of LDC graduation
Highlighting the importance of Bangladesh's upcoming graduation from Least Developed Country (LDC) status, DCCI urged targeted policy support for key sectors, including leather, pharmaceuticals, ICT, electronics and light engineering.
The chamber further recommended budget allocations for emerging sectors such as semiconductor research and artificial intelligence, along with the establishment of specialised industrial zones.
Infrastructure and investment incentives
To accelerate infrastructure development, DCCI proposed tax incentives, including exemptions on high-cost construction materials and machinery.
It also suggested introducing infrastructure bonds and sukuk to attract long-term investment.
Energy, governance and sustainability
DCCI stressed the importance of stable energy pricing through long-term import agreements and improved project management through real-time monitoring systems.
It recommended prioritising the completion of ongoing projects over launching new mega projects to ensure efficient resource utilisation.
The chamber also called for establishing secure data centres for the service sector and allocating budgetary support for environmental, social and governance (ESG) compliance to enhance global competitiveness.
