The Dhaka Chamber of Commerce and Industry (DCCI) has proposed increasing the individual tax-free income threshold to Tk 5 lakh and capping the maximum personal income tax rate at 25 per cent, as part of its pre-budget recommendations for the upcoming fiscal year 2026–27.
The proposals were placed on Monday at a pre-budget consultation titled “Budget 2026–27: Private Sector Expectations,” held at InterContinental Dhaka.
The event was jointly organised by DCCI bringing together policymakers, economists, and business leaders.
DCCI also recommended setting the corporate tax rate for non-listed companies at 25 per cent, bringing it in line with listed firms. It further called for the introduction of a fully automated corporate tax return system to simplify compliance and improve transparency.
The chamber suggested integrating the e-TDS platform with the National Board of Revenue (NBR) system to speed up PSR verification and enhance automation in tax administration. It also proposed the gradual withdrawal of advance tax at the import stage for manufacturers and a reduction for commercial importers.
In the value-added tax (VAT) system, DCCI recommended abolishing advance VAT, introducing a mobile application alongside the existing online system, and implementing a single-step refund mechanism to ensure faster VAT reimbursements.
The chamber urged policy measures to support private investment, including rationalised interest rates, reduced reliance on domestic bank borrowing for government financing, and expanded access to credit through refinancing and credit guarantee schemes.
It also called for strengthening the capital market by increasing IPO listings, encouraging large companies and SMEs to go public, and introducing long-term financing instruments such as bonds.
DCCI emphasised targeted support for key industries, including leather, pharmaceuticals, ICT, electronics, and light engineering, particularly ahead of Bangladesh’s LDC graduation.
It further proposed budgetary allocations for semiconductor research, artificial intelligence development, and the establishment of specialised industrial zones.
The chamber also recommended tax incentives for infrastructure development, including exemptions on high-cost construction materials and machinery, as well as the introduction of infrastructure bonds and sukuk to attract long-term investment.
DCCI stressed the need for stable energy pricing through long-term import agreements, improved project selection and monitoring through real-time systems, and prioritization of completing ongoing projects over launching new mega projects.
It also called for establishing secure data centers for the service sector and ensuring budget support for environmental, social, and governance (ESG) compliance to enhance competitiveness in global markets.
EHT/MHK