Business-friendly budget, but execution key: DCCI

The Dhaka Chamber of Commerce and Industry (DCCI) has welcomed the proposed FY2026-27 national budget, describing it as business- and investment-friendly, while stressing that its success will depend on effective implementation and the government's ability to meet ambitious revenue targets.

In its immediate reaction today (11 June), DCCI President Taskeen Ahmed said the budget could support investment and private sector growth, but only if announced reforms are implemented properly.

"The proposed national budget for FY27 can be considered business- and investment-friendly. However, its actual success will depend on achieving the ambitious revenue targets and ensuring effective implementation of the announced reforms," he said at a briefing at the DCCI auditorium in Dhaka.

The organisation noted that the proposed budget size of Tk9.38 lakh crore represents a 19.04% increase over the previous fiscal year, while the revenue growth target of 30.34% appears highly challenging under current economic conditions. 

It also cautioned that increased reliance on bank borrowing to finance the deficit could affect private sector credit flow.

DCCI said the proposed Annual Development Programme (ADP) of Tk3 lakh crore is encouraging, but pointed out that low implementation rates in the current fiscal year highlight weaknesses in execution capacity.

On tax measures, DCCI appreciated steps such as treating withholding tax as advance tax, lowering withholding tax on industrial raw materials, and providing incentives for healthcare, renewable energy, and electric vehicle sectors. It also welcomed efforts to expand the tax base without raising VAT rates and the introduction of online VAT return submission.

However, it expressed concern over the unchanged tax-free income threshold amid inflation and the relatively high top income tax rate, urging the government to raise the threshold to Tk5 lakh.

For the CMSME sector, DCCI praised the allocation under the Bangladesh Bank stimulus package and initiatives such as simplified turnover tax and e-loans for small entrepreneurs.

On investment and ease of doing business, it highlighted proposals including tax reductions on electric vehicles and consumer electronics, the introduction of free trade zones, and streamlined procedures for work permits and investor visas.

In the energy sector, DCCI welcomed EV-related incentives but said measures on gas exploration and energy security were insufficient, calling for a long-term pricing framework to ensure sustainable investment.

Earlier in the day, Finance Minister Amir Khosru Mahmud Chowdhury presented the Tk9.38 lakh crore national budget for FY2026-27 in parliament, outlining a reform-focused economic strategy.