CCCI proposes raising tax-free income to Tk5 lakh ahead of 2026-27 budget

Ahead of the 2026-27 national budget, Chattogram's top business body, the Chattogram Chamber of Commerce and Industry (CCCI), held a pre-budget consultation today (9 April).

They proposed raising the tax-free income for general taxpayers from Tk3.75 lakh to Tk5 lakh.

The meeting, organized at the World Trade Center in Agrabad, also emphasized simplifying the tax structure, reducing the burden of advance taxes, and bringing the tax refund and audit systems onto a fully digital platform.

Speaking as the chief guest, Md Abdur Rahman Khan, chairman of the National Board of Revenue (NBR), said, "NBR is moving toward return-based tax assessment to make the system more realistic. Instead of imposing additional surcharges at the import stage, taxes will be determined based on actual liability, which will ease pressure on businesses."

He noted that the NBR collected nearly Tk3 lakh crore in revenue last fiscal year but faces a target of over Tk6 lakh crore in the upcoming year, a major challenge under current economic conditions.

"The government must increase revenue collection to strengthen financial capacity, reducing reliance on excessive borrowing from banks, which can limit financing for the private sector, particularly businesses," he added.

The chairman also highlighted that long-standing budget deficits, domestic and foreign borrowing, and debt servicing have strained the economy, necessitating exploration of new revenue sources and, if needed, new tax measures.

During the session, CCCI Administrator Md Motahar Hossain presented proposals from the business community, including tax structure reforms.

He said the current tax-free income of Tk3.75 lakh is insufficient amid rising inflation, hence the proposal to raise it to Tk5 lakh.

He also suggested restructuring tax slabs, with the first tier at 5–7.5% and the second at 10–15%, providing relief to middle-income taxpayers.

The chamber submitted a total of 33 income tax proposals, 36 VAT proposals, and 67 customs-related proposals to NBR for consideration in this year's budget.

Business leaders expressed concern that advance income tax (AIT) at the import stage is tying up working capital, and delays in tax refunds are hampering operations.

They also criticized the lengthy VAT audit process, which currently takes nearly five years to complete. A separate, skilled audit unit was proposed to address this.

On the energy sector, the chamber highlighted that annual demand for octane and petrol is around 9 lakh tons, while domestic production meets only about half.

Proposals included establishing new refineries, increasing capacity at the existing Eastern Refinery, tax exemptions for electric vehicles, and incentives for green energy use.

The session also addressed challenges related to graduation from the LDC category.

Speakers noted that the global halal products market is currently around $3.3 trillion and is projected to reach $9.45 trillion by 2034. Bangladesh's exports, however, stand at just $843 million, requiring policy support and capacity enhancement to increase market share.

Participants stressed that revenue growth should not increase pressure on regular taxpayers but should expand the tax net and simplify complex regulations.

The consultation was attended by senior NBR officials, representatives from customs, VAT, and income tax departments, as well as business leaders from Chattogram and other districts.

Following the meeting, CCCI formally handed its budget proposals for FY 2026-27 to the NBR chairman.