The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has welcomed Bangladesh’s largest‑ever national budget for FY2026‑27 as a bold step to rebuild the economy, while voicing serious concerns over the feasibility of its ambitious revenue target and the risk of taxpayer harassment without substantive structural reforms.
In a press statement issued on Saturday, MCCI President Kamran T Rahman congratulated Finance and Planning Minister Amir Khosru Mahmud Chowdhury for presenting the 55th national budget, the first of the newly elected government, amounting to Tk938,000 crore, equivalent to 13.73 per cent of GDP.
The chamber described the Tk695,000 crore revenue collection target,18.20 per cent higher than the revised target of the outgoing fiscal year as ambitious and expressed doubt over its feasibility.
Of the total, Tk604,000 crore has been assigned to the National Board of Revenue (NBR), representing a 20.08 per cent increase over the revised target.
MCCI noted that the NBR collected only Tk326,928 crore, about 65 per cent of its revised target through April of the current fiscal year, while ADP implementation stood at just 41.41 per cent during the July–April period.
“Without structural reforms, efforts to meet this target may lead to increased pressure and harassment of taxpayers,” the chamber warned, adding that additional taxation could raise prices of essential commodities and burden ordinary citizens.
MCCI expressed concern over a sharp decline in total investment, which fell to 27.93 per cent of GDP in FY 2025–26, the lowest in a decade. Private investment accounted for only 21.53 per cent, with public investment at 6.40 per cent.
The chamber said the investment slump was eroding employment opportunities and heightening poverty risks.
The chamber welcomed a Tk144,338 crore allocation for social safety net programmes, up Tk17,607 crore or 13.89 percent from the previous fiscal year, including dedicated funds for the Family Card Programme (Tk14,500 crore), Farmer Card Programme (Tk1,062.50 crore), and religious allowances (Tk1,081 crore).
MCCI also praised plans to raise education spending from 1.39 per cent to 2.0 per cent of GDP and health expenditure from 0.58 per cent to 1.01 per cent, calling them reflective of long-term commitment to human capital development.
Among the welcome measures, MCCI commended proposed reforms to Tax Deducted at Source (TDS), reduced mandatory deposit requirements for tax appeals at tribunal and high court levels, quarterly VAT return filing, paperless VAT administration, and inclusion of labour within the VAT input definition.
However, the chamber raised concerns over the abolition of the 5 per cent minimum income tax slab in favour of a 10 per cent rate, reduction of individual investment tax rebates from 15 per cent to 10 per cent, and the proposed increase in the highest tax rate from 30 per cent to 35 per cent from tax year 2028–29.
It also flagged the absence of any proposal to rationalise or reduce the Minimum Turnover Tax on companies.
MCCI warned that a proposed data connectivity and information-sharing framework could pose serious threats to data privacy without adequate legal and technological safeguards.
Welcoming the Tk60,000 crore “Stimulus Package 2026,” the BanglaBiz one-stop digital service platform, and expanded FTA, PTA and EPA trade agreements, MCCI said these would play an important role in attracting foreign investment and generating employment.
The chamber called for quarterly reviews of budget implementation given prevailing global economic uncertainties and reaffirmed its commitment to partnering with the government to foster a business-friendly environment.
“The success of this mega budget will depend on institutional good governance, a harassment-free tax administration, and maintenance of macroeconomic stability,” the statement concluded.
