Budget not promising enough to create favourable environment for business, investment: DCCI president
He also called for measures to bring down the cost of borrowing from banks to 6–7%
The proposed budget for FY26 lacks clear directives on investment expansion, ease of doing business, and reforms in the CMSMEs and banking sectors, which may hinder efforts to create a fully conducive environment for business and investment growth, according to Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed.
He was speaking at a press conference organised by the DCCI to share the chamber's immediate reaction to the national budget. The event was held at the DCCI auditorium in Dhaka today (2 June).
Taskeen said, "Although the budget includes some positive measures such as inflation control, adjustments to the minimum tax, broader scopes for allowable deductions, tax net expansion, and the introduction of an automated return system, it falls short in offering a comprehensive roadmap for business growth and investment facilitation."
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He further observed that in many cases, the absence of a clear roadmap may put business and commercial activities under considerable pressure in the coming fiscal year.
The DCCI president also pointed out that the revenue collection target is quite ambitious and may be difficult to achieve.
He expressed concern that keeping the individual tax exemption limit unchanged while removing tax slabs would increase the burden on the middle class, especially salaried individuals.
Taskeen further said raising import duties on automobile spare parts from 10% to 25% will push up production costs in the local industry. He also urged the government to reconsider the decision to increase turnover tax from 0.6% to 1%.
While the cost of internet use has decreased, the rise in VAT on local mobile phone manufacturing could hinder the growth of the sector, he noted.
"Despite some initiatives to curb inflation, the cost of doing business is set to increase, which could slow down the overall pace of the economy," Taskeen further said.
He also called for measures to bring down the cost of borrowing from banks to 6–7%.
Referring to the government's borrowing plans, he said the government's target for borrowing from the financial sector at higher rates could lead to a reduction in credit flow to the private sector.
The DCCI president also highlighted the absence of a clear roadmap for the development of the SME sector in the proposed budget.
Senior Vice President Rajib H Chowdhury, Vice President Md Salem Sulaiman, and other board members of DCCI were also present at the event.
