The Dhaka Chamber of Commerce and Industry (DCCI) on Wednesday submitted a set of proposals for the FY2026–27 national budget to the National Board of Revenue (NBR), calling for tax relief, full automation of the revenue system and wide-ranging reforms to improve the business environment and strengthen revenue collection.
DCCI Secretary General (Acting) AKM Asaduzzaman Patwary presented DCCI’s budget proposals for FY2026-27 on behalf of DCCI President Taskeen Ahmed at the pre-budget discussion held at the conference center of the National Board of Revenue (NBR).
A summary of DCCI’s 54 proposals covering income tax, VAT and import duties was submitted to NBR Chairman Md Abdur Rahman Khan, FCMA.
DCCI Acting President Md Salem Sulaiman, Directors M Mosharrof Hossain, Md Mostafa Kamal, PEng and Rasheed Maimunul Islam were also present during the discussion.
DCCI presented the proposals as part of its pre-budget recommendations. The chamber said the measures aim to strengthen revenue mobilisation, create a business-friendly environment, reduce tax burden and promote investment in productive sectors to support employment generation.
The organisation submitted a total of 54 proposals, including 16 key recommendations covering income tax, VAT, customs duty, automation of tax administration and business facilitation measures.
It stressed expansion of the tax base and simplification of the tax structure as core priorities. DCCI also called for business-friendly tax policies, full automation of tax administration, reforms in VAT systems, protection of local industries and simplified import duty and tariff structures.
In its income tax proposals, DCCI recommended raising the tax-free income threshold to Tk500,000 and restructuring tax slabs. Under the proposed structure, income up to Tk500,000 would remain tax-free, followed by 5 percent tax on the next Tk200,000, 10 percent on the next Tk300,000, 15 percent on the next Tk400,000, 20 percent on the next Tk500,000, and 25 percent on the remaining income.
The chamber said the revised structure would encourage new taxpayers to enter the tax net, expand the tax base, ease pressure on low and middle-income earners and support economic activity.
DCCI also proposed reducing the corporate tax rate for non-listed companies from 27.5 percent to 25 percent, especially for firms complying with banking transactions and other regulatory requirements. It suggested strict compliance through mandatory digital or banking channels for all transactions.
The chamber noted that while only around 350 companies are listed, the number of non-listed firms is much higher. It said a lower tax rate would encourage business expansion and motivate companies to move towards listing.
DCCI said Bangladesh’s tax-to-GDP ratio stood at 6.7 percent in FY2025, while a large portion of economic activity remains outside the formal system.
To address this, it proposed full automation of tax administration, data integration and digital filing systems. It suggested linking databases such as national ID, banking records, trade licences, electricity and gas connections, vehicle registration, mobile financial services and land records through a central API to identify potential taxpayers and bring them into the tax net.
The chamber also proposed introducing an automated e-corporate tax return system to replace the current manual process, which it described as complex and time-consuming. The system would allow online filing, appeals and refunds, with automated bank transfers through BEFTN.
DCCI recommended reducing withholding tax on interest from securities to 5 percent and gradually removing it, along with allowing adjustment or refund of excess tax deducted.
It also proposed cutting withholding tax on interest from corporate deposits from 20 percent to 10 percent, with provisions for adjustment against final tax liability. It said this would ease pressure on companies, particularly small businesses, and support investment.
The chamber proposed restoring provisions similar to the Income Tax Ordinance 1984 to allow adjustment of business losses against other income. It said current provisions increase tax pressure on businesses.
DCCI also suggested a gradual removal of surcharge on net wealth over three to five years instead of immediate withdrawal, saying it would reduce tax-on-tax effects and ensure fairness for asset-heavy but income-limited taxpayers.
It further proposed lowering minimum tax on turnover from 1 percent to 0.25 percent for individuals and 0.60 percent for other entities, with a long-term goal of abolishing it and shifting to profit-based taxation.
On VAT, DCCI recommended keeping advance tax on commercial imports at 5 percent instead of increasing it to 7.5 percent, with a gradual phase-out. It said higher advance tax increases working capital pressure and raises consumer prices.
The chamber also proposed removing the Tk50,000 cap on VAT refunds and allowing full refund of negative balances through automated systems. It said this would improve liquidity and support business expansion.
It further suggested a fully online VAT system, including filing, appeals, credit refunds and risk management through an e-return portal, along with a single-step VAT refund process to reduce delays and improve cash flow.
DCCI proposed introducing a national mobile VAT application to generate real-time VAT receipts using BIN numbers, with automatic transmission to NBR systems and digital sharing with buyers.
It said the system would improve transparency, reduce tax evasion and increase revenue collection.
The chamber also recommended automating customs refunds through direct bank transfers via BEFTN or EFT instead of manual cheques, saying it would reduce delays and harassment.
It further proposed a uniform customs valuation system for stearic acid and similar chemicals, instead of country-based valuation, to prevent market distortion and unfair competition.
DCCI said its proposals aim to expand the tax base, improve compliance, reduce business costs, encourage investment, strengthen automation and boost revenue mobilisation. It added that implementation would support economic growth, competitiveness and job creation in the upcoming fiscal year.
