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DCCI submits budget proposals for FY 2026–2027
Dhaka Chamber of Commerce & Industry (DCCI) has proposed setting the tax rate for non-listed companies at 25% instead of 27.5% in the FY 2026-27 budget, increasing the tax-free income limit for individuals to BDT 500,000, automating the revenue structure to enhance tax-GDP ratio, reducing advance tax on commercial imports from 7.5% to 5% and ensuring full automation of the customs refund system.
DCCI Secretary General (Acting) Dr. AKM Asaduzzaman Patwary presented DCCI’s budget proposals for FY2026-27 on behalf of DCCI President Taskeen Ahmed on April 22, 2026 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.
At the meeting, Convener of DCCI’s Customs, VAT, Taxation and NBR Related Issues Standing Committee, MBM Lutful Hadee, FCA stated that DCCI has emphasized on expanding the tax net, increasing revenue collection capacity, creating a business-friendly environment, reducing the tax burden, boosting employment and providing supportive policy measures for investment in manufacturing sectors. He expressed that these measures would reduce the cost of doing business for entrepreneurs, increase government’s revenue collection and positively impacting the overall economy.
During the of the proposal presentation, DCCI Secretary General (Acting) Dr. AKM Asaduzzaman Patwary emphasized introducing a “central API integration” system by coordinating data among all relevant government service-providing agencies to expand the tax net and reduce the revenue deficit. He also proposed reducing the source tax on interest income from company security deposits from 20% to 10% and gradually eliminating the surcharge imposed on companies’ net assets. Additionally, he suggested removing the upper limit on VAT refunds, introducing mobile apps to increase VAT collection and implementing overall automation in VAT collection process to boost business activities and expand indirect revenue in the long run.
Aligning with majority of the DCCI’s proposals, NBR Chairman Md. Abdur Rahman Khan, FCMA, stated that in this year’s budget, the NBR would focus more on removing non-tariff barriers rather than reducing tariff rates. He said this would lower the cost of doing business, bring relief to the entrepreneurs and revitalize the country’s macroeconomic environment. He further noted that there would be no leniency in identifying tax evaders and bringing them under the tax net, aiming to reduce the burden and harassment on compliant taxpayers.
The NBR Chairman also mentioned that the government is committed to expanding the VAT base and sought all-out cooperation from the business community. He highlighted that the VAT threshold was reduced from Tk.3 Crore to Tk.50 Lac last year and currently less than 800,000 businesses are VAT-registered, which not satisfactory. Considering the country’s economic size, this number should exceed at least 10 Lac. He added that the corporate tax rate has already been reduced from 50% to 27.5% over time and there is limited scope for further reduction. He also mentioned that they would remain cautious that the effective tax rate does not increase. He further informed that from next year, corporate tax returns will be submitted online and the process of ensuring online tax refund (refund) systems is almost complete.
Published on: 2026-04-22