The Metropolitan Chamber of Commerce and Industry (MCCI) stated that implementing the new budget will be highly challenging given the current economic context in Bangladesh. In their post-budget reaction, MCCI emphasized the need for significant structural reforms in tax administration to enhance revenue collection. They noted that many high-income entities remain outside the tax net, while the tax burden on compliant individuals and businesses continues to grow. MCCI President Kamran T. Rahman expressed concerns that ongoing tax reforms prescribed by the International Monetary Fund (IMF) could widen the budget deficit and increase the tax burden, potentially impacting future business expansion.
Despite these concerns, MCCI praised the government’s decision to reduce the corporate tax rate by 2.5 percentage points for unlisted and one-person companies. Meanwhile, the Foreign Investors’ Chamber of Commerce and Industry (FICCI) lauded the comprehensive fiscal plan outlined in the proposed budget, which aims to control inflation and stabilize the economy. FICCI President Mohammad Zaved Akhtar highlighted measures such as tightening monetary policy and substantial investments to boost agricultural and industrial productivity.
However, FICCI noted the budget’s lack of allocation for automating tax, VAT, and customs administration, which could simplify the tax collection process and ease financial strain on businesses. The Institute of Chartered Accountants of Bangladesh (ICAB) welcomed the prospective tax rate, tax rate reductions for private companies, and lower source tax on essentials, despite global economic uncertainties.
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