MCCI welcomes budget priorities, doubts 'ambitious' revenue target

The Metropolitan Chamber of Commerce and Industry (MCCI) has welcomed the proposed National Budget for the 2026-27 fiscal year, describing its "timely focus" on economic recovery, employment generation, and social protection, but expressed concerns over the feasibility of an "ambitious" revenue collection target.

In an official statement issued today (12 June), the country's leading trade chamber congratulated Finance and Planning Minister Amir Khosru Mahmud Chowdhury for presenting the first budget of the newly elected government.

The chamber noted that the fiscal blueprint was formulated under difficult conditions, including persistent inflationary pressures, global geopolitical uncertainties, sluggish investment, and revenue mobilisation challenges.

The proposed budget for the upcoming fiscal stands at Tk9.38 lakh crore, equivalent to 13.73% of the Gross Domestic Product (GDP), marking an increase of nearly 19% from the revised budget of the current fiscal.

Alongside the main budget, the government has approved an Annual Development Programme (ADP) worth Tk3 lakh crore.

MCCI observed that the government's targets of achieving 6.5% GDP growth and curbing inflation to 7.5% reflect a commitment to restoring macroeconomic stability.

The chamber also endorsed the government's 10 chosen priority areas, describing them as "appropriate" for bringing relief to the public and strengthening overall economic discipline.

However, the business body raised serious questions over the revenue collection target of Tk6.95 lakh crore for the upcoming fiscal, which includes a Tk6.04 lakh crore target for the National Board of Revenue (NBR).

'Harassment of taxpayers'

Given current collection trends, the chamber deemed the figure overly ambitious.

It pointed out that as of April in the outgoing financial year, the NBR had managed to collect Tk3.27 lakh crore, which is only around 65% of its revised target.

"Without structural reforms, efforts to achieve this target may lead to increased pressure and harassment of taxpayers," the chamber said, warning that additional taxation could increase prices of essential commodities and further burden consumers.

Instead of loading higher tax burdens onto existing taxpayers, the business body urged the government to focus on automating the tax administration, expanding the actual tax net, and greater efficiency in public expenditure management.

MCCI also drew attention to the country's weakening investment climate, noting that total investment dropped to 27.93% of GDP in the FY26, the lowest level in a decade.

Within this figure, private investment stood at 21.53% of GDP, while public investment accounted for 6.4%.

On a positive note, the chamber welcomed several tax reform proposals tabled in the budget, including adjustments to Tax Deducted at Source (TDS) provisions, lowered appeal deposit requirements, increased recognition of legitimate business expenses, and measures to digitalise the tax administration.

It also lauded the government's expansion of social safety net programmes, highlighting the proposed Tk1.44 lakh crore allocation for social protection schemes, including provisions for the Family Card and Farmer's Card initiatives.

MCCI further welcomed initiatives such as the BanglaBiz one-stop digital platform, prospective trade agreements, and the Tk60,000 crore stimulus package, noting that these could successfully boost industrialisation, foreign investment, and employment.

Ultimately, the chamber concluded that the success of the budget for the 2026-27 fiscal will entirely depend on its effective implementation, institutional reforms, improved governance, and the creation of a business-friendly tax environment.