Metropolitan Chamber of Commerce and Industry (MCCI) has questioned the achievability of the government’s Tk6.95 lakh crore revenue target for fiscal year 2026-27, warning that meeting it without structural reforms could intensify taxpayer pressure, weaken compliance and lift consumer prices.
The concern comes against a steep revenue expansion plan. The National Board of Revenue (NBR) has been assigned Tk6.04 lakh crore, 20.08 per cent higher than the revised target, while overall revenue is set to rise 18.2 per cent.
MCCI pointed to weak execution, noting NBR collected Tk3.27 lakh crore during July-April of FY26, or 65 per cent of the revised target, casting doubt on the feasibility of the new goal without deeper reforms.
The chamber argued that additional taxation to meet the target could raise prices of essentials and increase burdens on consumers, while squeezing compliant taxpayers and weakening investment sentiment. It maintained that tax expansion should focus on widening the base rather than raising pressure on existing taxpayers, even amid IMF-linked tax-to-GDP goals.
Investment weakness adds to concerns. Total investment fell to 27.93 per cent of GDP in FY26, a decade low, with private investment at 21.53 per cent and public at 6.4 per cent, which MCCI linked to slower job creation and rising poverty risks.
The chamber welcomed the Tk3 lakh crore annual development programme but flagged execution constraints, citing 41.41 per cent implementation during July-April of the current fiscal year.
The Tk9.38 lakh crore budget, the largest in Bangladesh’s history, is 18.73 per cent higher than the original FY26 budget and 19.04 per cent above the revised figure. It targets 6.5 per cent growth and 7.5 per cent inflation while prioritising recovery, jobs, social protection and electoral commitments.
MCCI backed the ten priority areas and welcomed the expansion of social safety nets to Tk1.44 lakh crore, up 13.89 per cent. It highlighted the Family Card Programme covering 4.1 million families with Tk2,500 monthly support, alongside farmer and religious welfare schemes, saying these would support demand and align with electoral pledges.
It also welcomed investment measures including the BanglaBiz one-stop platform, expansion of FTA, PTA and EPA frameworks, and the Tk60,000 crore Stimulus Package 2026, citing potential gains for industrialisation and jobs.
On taxation, MCCI supported the shift in TDS rules replacing full expense disallowance with payment of tax plus a 50 per cent penalty, saying it reduces disproportionate compliance risk. It also backed higher thresholds for perquisites, expanded allowances for entertainment and promotions, and wider recognition of bank transfers including recorded cash sales deposits.
However, it criticised the unchanged minimum turnover tax, arguing its non-refundable structure strains cash flow and undermines competitiveness, especially for loss-making firms.
On personal tax, the chamber welcomed higher tax-free thresholds and gradual increases to Tk4.5 lakh by 2030-31, but warned that scrapping the 5 per cent slab and introducing a 10 per cent minimum rate would raise burdens on a broad taxpayer base. It also urged reconsideration of the proposed 35 per cent top rate and said inflation was not fully reflected in thresholds. Reduced investment rebates, it added, could weaken savings and capital formation.
MCCI flagged risks in proposed data-sharing provisions across agencies, warning of potential misuse, unauthorised surveillance and privacy breaches without strong safeguards.
It proposed NID-TIN integration, a symbolic minimum tax for new taxpayers and simplified mobile filing to widen the tax base.
On VAT, the chamber supported quarterly returns, paperless systems, automated registration and lower appeal deposits, saying these would reduce compliance costs and harassment. It also welcomed labour’s inclusion in the VAT input definition, continued transport VAT exemption and retention of rebate structures.
However, it criticised limited progress on VAT Act reform, calling for wider e-invoicing and electronic fiscal devices.
MCCI said the budget’s success would depend on governance, administrative efficiency and macroeconomic stability, and called for quarterly implementation reviews while reaffirming support for reforms to improve the business climate.
