Businesses are emphasizing the importance of a growth-oriented national budget for the 2026-27 fiscal year amid various challenges. They are calling for lower effective tax rates, specifically turnover tax, and a balanced tax policy to stimulate investment and economic growth. These suggestions were put forward during a pre-budget seminar in Dhaka, organized by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Economic Reporters’ Forum (ERF).
The President of MCCI, Kamran T Rahman, highlighted the challenging economic conditions globally and domestically, pointing out issues like high inflation, limited investment, high interest rates, and foreign exchange pressures affecting businesses, especially small and medium enterprises. Rahman proposed a 2.5 percentage point reduction in corporate tax for both listed and non-listed companies and the elimination of the cash transaction requirement to boost investment and job creation.
Golam Mainuddin, Chairperson of Apex Footwear Limited, expressed concerns about the high tax burden on compliant taxpayers. Habibullah N Karim, MCCI’s Senior Vice-President, suggested reevaluating the taxation system to promote compliance by reducing high tax rates. He also highlighted the potential for increased tax collection by lowering VAT rates to encourage more businesses to comply.
Malik Mohammed Sayeed, CEO of Square Toiletries Limited, advocated for maintaining tax exemptions on sanitary napkins and diapers and reducing taxes on imported raw materials to around 10 percent to support industries reliant on imported inputs. Asif Ibrahim, former President of the Chittagong Stock Exchange, emphasized the need to revitalize domestic investment to attract foreign investors, addressing concerns about stagnant private-sector credit growth and advocating for financial sector reforms.
Former NBR chairman Muhammad Abdul Mazid stressed the importance of policy predictability, emphasizing the need for businesses to have clarity on tax rates well in advance. ERF President Doulot Akter Mala cautioned against setting overly ambitious revenue targets in the upcoming budget, citing concerns about a potential revenue shortfall this fiscal year.