Staff Reporter:
Business leaders on Wednesday called on the government to ensure the upcoming national budget for the forthcoming 2025-26 fiscal year is supportive of investment and enterprise, in light of Bangladesh’s imminent graduation from the Least Developed Country (LDC) category and the continued volatility in the global economy.
Speaking at the 45th meeting of the National Board of Revenue (NBR)’s Consultative Committee, held at a hotel in the capital, they urged policy consistency, tax reforms, and stronger institutional accountability to restore investor confidence and support economic stability.
Finance Adviser Salehuddin Ahmed attended the meeting as chief guest, while the session was moderated by Md Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Speaking at the event, Hafizur Rahman said the business community has high expectations from the interim government, especially amid mounting domestic and global challenges.
He stressed that the forthcoming budget must reflect the “spirit of the July 2024 movement” and help restore confidence in trade through stable and supportive policies.
At the event, the FBCCI called for raising the tax-free income limit to Tk450,000 for general taxpayers and Tk500,000 for women and senior citizens, highlighting the rising cost of living.
Meanwhile, the BTMA alleged that businesses are being forced to pay hefty bribes for routine VAT certificates, undermining both productivity and trust in public institutions.
Finance Adviser Salehuddin Ahmed reassured the business community that their practical demands would be seriously considered, promising a more “realistic” budget that moves away from traditional approaches.
However, he also underscored the government’s pressing need to increase revenue and cautioned that the era of widespread tax exemptions is coming to an end
Rampant bribery at VAT offices alleged
A major concern raised during the meeting was widespread corruption in VAT offices.
Mohammad Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), alleged that businesses are being forced to pay significant bribes to obtain necessary certificates.
“After installing new machinery, companies are required to get clearance certificates from the VAT offices. We are made to pay Tk50,000 in bribes for each certificate, whereas the actual tax is only around Tk30,000,” said Russell.
He added that these certificates were previously issued by industry associations, but the responsibility was transferred to VAT offices, complicating the process without benefiting the NBR. “This change has only created obstacles for businesses and fostered corruption,” he remarked.
Russell also drew attention to the ongoing power and gas shortages affecting the industrial sector and urged the government to extend current corporate tax concessions until 2028.
FBCCI calls for higher tax-free threshold
The FBCCI proposed raising the tax-free income limit to Tk450,000 for general taxpayers in the upcoming budget, with a higher threshold of Tk500,000 for women and senior citizens (aged over 65). Hafizur Rahman argued that with inflation and rising living costs, such a revision is essential.
“Low-income individuals are spending most of their earnings on basic necessities. The current tax structure is adding to their financial burden,” he noted.
Budget to reflect business concerns, says finance adviser
Finance Adviser Salehuddin Ahmed assured business leaders that their reasonable proposals would be considered in the upcoming budget, while also underscoring the government’s own need to boost revenue collection.
“We aim to deliver a realistic budget this year – not just on paper, but in practice,” he said. “There will be less room for tax exemptions. We want people to say this was a good budget, even after we’ve left office.”
He also addressed concerns around international trade, particularly in light of the Trump administration’s new tariff regime. Bangladesh, he said, may request an extension of the current 90-day tariff pause. “We will intensify our diplomatic engagement and seek more time if needed,” he added.
The finance adviser acknowledged that many small businesses and regional chambers often go unheard. “We are here for you. We may have made mistakes, but we’re trying to ensure people are not left uncomfortable,” he said.
Call for fair taxation and accountability
Commerce Adviser SK Bashir Uddin offered a sharp critique of past budgets, describing them as “spending festivals” plagued by excessive and inefficient use of public funds.
He pledged that the FY26 budget would be focused, fair, and implementable.
He criticised the tendency to saddle the NBR with unrealistic revenue targets, which he said leads to blanket taxation and undermines trust.
“Tax justice is critical. Its absence fuels social discontent and leaves the business community disillusioned,” he warned.
Highlighting the link between corruption and political influence, Bashir Uddin added, “In the past, some business figures used their political positions to institutionalise corruption. It’s disheartening to see how the actions of a few have tarnished the entire business community.
