Budget not supportive of business and investment: DCCI

Although the proposed budget includes some positive steps such as inflation control, adjustments to the minimum tax, expansion of allowable deductions in various areas, widening of the tax net, and introduction of an automated return system, the Dhaka Chamber of Commerce and Industry (DCCI) believes it is not sufficiently supportive for creating a favorable environment for investment and ease of doing business. The budget lacks clear directives for expanding investment, improving business conditions, and reforming the CMSMEs and banking sector.

DCCI also raised concern that the lack of clear roadmaps in several parts of the proposed 2025–26 national budget could create pressure on business activities.

During an instant reaction event on Monday (June 2), DCCI President Taskeen Ahmed said, “The revenue collection target is quite high, and achieving it will be challenging. Keeping personal tax limits unchanged and removing the tax slabs means the middle class, especially salaried individuals, will face a heavier tax burden in the next fiscal year.”

He also mentioned that increasing import duty on automobile spare parts from 10% to 25% will raise local production costs in the sector. DCCI urged the government to reconsider the decision to raise the turnover tax from 0.6% to 1%.

Although internet costs have decreased, higher VAT on locally produced mobile phones could slow down the growth of this industry, Taskeen Ahmed warned.

He said, “While there are steps to control inflation, the cost of doing business will rise, which may slow down overall economic growth.” He also called for bringing down the cost of bank borrowing to 6-7%.

The DCCI President further said, “The government has set a high target for borrowing from the financial sector, which may reduce the loan flow to the private sector.”

He also noted that the budget does not contain any specific roadmap for the development of the SME sector.

Senior Vice President of DCCI Rajib H. Chowdhury, Vice President Md. Salim Solaiman, and other board members were present at the event.