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Live Budget Discussion FY2025-26: Private Sector Perspective
In order to continue the economic growth momentum, it is necessary to keep increasing the revenue collection and for this, enhancing tax net as well as easing the overall tax management system across the board is a must, said Taskeen Ahmed, President of Dhaka Chamber of Commerce & Industry (DCCI) at a ‘Live pre-budget discussion: private sector perspective’ organized by DCCI in cooperation with Samakal and Channel 24 at a city hotel on 13 April, 2025.
For the upcoming national budget, he recommended introduction of fully automated corporate tax return system, abolition of advance tax for the manufacturers at the import stage and reduction of the same for the commercial importers. He also proposed to impose at least 1% VAT for the entrepreneurs of informal sector and single digit VAT for the other traders. He also said considering the prevailing local and geo-political situation, it is necessary to reduce the interest rate on loans, extend the loan classification period by another six months and provide moratorium facility for at least six months for all industries, establish good governance in the financial sector to reduce non-performing loans, simplifying procedures of CMSME loans and formulating equity-based share policy in the capital market for long-term financing.
Taskeen Ahmed also demanded competitive fuel pricing in the industrial sector, as well as ensuring uninterrupted gas and power supply for the development of infrastructure and logistics management for strengthening industrialization in Bangladesh. Besides, he opined that special facilities should be provided in the upcoming budget in potential sectors like agriculture, leather, pharmaceuticals, automobile, light engineering and information technology to increase export earnings.
Chairman of National Board of Revenue (NBR) Md. Abdur Rahman Khan, FCMA said the existing tax, VAT and customs rates will be rationalized along with the automation of the entire revenue management system. He said the ‘National Single Window’ has been started recently after a long closure and the businessmen are getting its facilities already. He also said automation will be implemented at every level of the tax management in the coming days and the bond automation project will be launched soon. The NBR Chairman said that our individual and corporate tax rates are quite low in the region comparatively, so there is less possibility of reducing these rates further in the upcoming budget. However, he hoped that the existing disparity in the tax rates at different levels would be resolved in the next budget.
Regarding recent imposition of tariff on Bangladesh’s export to USA by the US government, President of International Chamber of Commerce, Bangladesh and former President, DCCI Mahbubur Rahman said the government should take initiative to negotiate with the US government in this regard and he also suggested to form a Task Force with representatives of the private sector, including DCCI. He further stressed on full automation of customs and revenue structure to bring transparency in the revenue management sector. He later added that the budget is formulated not only for a year, rather it has long term guidance for the business and economy as well. He further urged to facilitate the local investors in the next budget, so that they can contribute more to our economy.
Former Commerce Minister Amir Khasru Mahmud Chowdhury said the economy will not expand without increasing investment and business growth, but necessary reforms are needed to ensure supportive policies. We have a mismatch in our long-term financing method, due to which the desired level of business progress is not being seen, because it is not sustainable to collect deposits in a short-term basis and give loans in the long term, he added. Effective and supportive tax policies have to be formulated to ensure investment expansion, where we are lagging far behind, he opined.
Former FBCCI President Abdul Awal Mintoo urged for a business-friendly budget in the context of current geo-political situation. He also said that contractionary monetary policy for longer time is not ideal for the overall development of the private sector. He underscored the importance of coordination among the revenue and related policies for improvement of the business climate. In order to increase the tax-GDP ratio, he stressed on bringing the non-tax payers on board especially those who have TIN but not paying any taxes.
Former FBCCI President Mir Nasir Hossain said due to budget deficit and contractionary monetary policy, credit flow to the private sector has not reached to the desired level. He demanded for an inclusive, business friendly, investment friendly, timely and a pragmatic budget for the next fiscal. He also called for more focus on reducing government expenditure in the form of austerity to meet the revenue deficit. He said if harassment is stopped, more people will be encouraged to pay taxes.
Abul Kasem Khan, former President, DCCI said the logistics policy has already been formulated which is a good move indeed, but it is necessary to have a ten-year-long logistic masterplan. He also said that a strong bond market is needed for long term finance that would help infrastructure sector a sustainable growth. He also suggested to make PPP more attractive for long term infrastructure investment.
Rizwan Rahman, former President, DCCI said that in the current context of geo-political and economic situation the private sector of Bangladesh is not ready for the LDC graduation. Therefore, the government may consider taking this crucial decision very thoughtfully.
BKMEA President Mohammad Hatem said that if the government gives warehouse facility to the importers, then they are willing to import good quality cotton from the USA and that would largely help reduce the existing trade gap between these two countries. He also added that it is high time we need to go for producing high value man-made fiber to be more competitive in the international apparel market.
Mohammed Forkan Uddn, FCA, former President, ICAB, AKM Badiul Alam, Member (Tax Policy), NBR, Asif Ashraf, Managing Director & CEO, Urmi Group, Matiur Rahman, former President, DCCI, Sheikh Mohammad Maroof, Managing Director, Dhaka Bank PLC, AKM Habibur Rahman, Chairman, Chittagong Stock Exchange, Dr. Sayera Younus, Executive Director (research), Bangladesh Bank, Mominul Islam, Chairman, Dhaka Stock Exchange, Imran Karim, Vice Chairman, Confidence Group and Kabir Ahmed, President, Bangladesh Freight Forwarders Association also spoken on the occasion. The speakers urged for a reasonable revenue target, single VAT rate and automation of overall revenue management. They also recommended for deferring the LDC graduation, ensuring uninterrupted gas and power supply to industries, infrastructure development, ensuring good governance in the financial sector, implementing a stable exchange rate, reducing the interest rate on loans, introducing a strong bond market and bringing confidence in the capital market.
Editor of Samakal Shahed Mohammed Ali gave vote of thanks and concluding remarks on the occasion
DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman and members of the Board of Directors are also present on the occasion.
Published on: 2025-04-13