The proposed national budget for FY2026-27 has unveiled an ambitious deregulation and digital reform agenda aimed at lowering business costs, simplifying compliance procedures and attracting greater private investment in Bangladesh.
The initiative seeks to remove long-standing bottlenecks in customs, taxation, VAT administration and business licensing that have historically increased the cost of doing business and slowed trade operations.
Presenting the budget, Finance Minister Amir Khosru Mahmud Chowdhury outlined a broad roadmap focused on automation, transparency and ease of doing business. The reforms are designed to restore investor confidence and support a shift towards a production-driven economy led by private-sector investment and employment generation.
“Bangladesh must move away from a debt-dependent growth model and build an economy driven by production, productivity and investment,” the finance minister said in his budget speech.
Business leaders have welcomed the measures. Amanullah Al Saghir Chhuttu, director of the Chattogram Chamber of Commerce and Industry, said the proposed budget contains several initiatives that could reduce business costs and strengthen the productive sectors of the economy. He noted that lower import costs, support for agriculture and industry, and increased public investment in healthcare are expected to have positive economic impacts.
Digital tax and VAT reforms
A key feature of the budget is the introduction of a fully automated, risk-based audit system for income tax and VAT, aimed at reducing human discretion and improving transparency.
Foreign investors will be able to obtain tax residency certificates online through the National Single Window platform, while integration between ASYCUDA World and the e-Return system will facilitate faster data exchange between customs and tax authorities.
The budget also proposes removing provisions that disallow business expenses due to non-deduction of tax at source, reducing compliance burdens. In addition, accrual-based income reporting will be introduced in line with international accounting standards.
Customs bond reform for export growth
The government has proposed a major overhaul of the customs bond regime to strengthen export competitiveness and encourage diversification beyond the ready-made garment sector.
The reform will extend bonded warehouse facilities and related incentives to export-oriented sectors such as leather goods, footwear, towels, linen and home textiles. Administrative procedures will be simplified, duty-free import access expanded and audit requirements eased.
Notably, compliant 100 percent export-oriented garment factories will no longer be required to undergo mandatory annual bond audits.
Faster trade and business services
The budget also proposes faster customs clearance for Authorised Economic Operator (AEO)-certified companies by expanding system-based self-assessment. Product testing and compliance verification will be supported through government laboratories, the Bangladesh Accreditation Board and internationally accredited private laboratories.
To modernise VAT administration, online VAT return filing through the e-VAT system will become mandatory. BIN registration, appeals and refund processing will also be automated.
For small and medium-sized enterprises, a simplified VAT return system will reduce paperwork and compliance costs.
Under the proposed reforms, businesses will be able to obtain BIN registration immediately through the e-VAT platform, while VAT dispute resolution will become more technology-driven and taxpayer-friendly, helping reduce case backlogs and improve the overall investment climate.
