The Dhaka Chamber of Commerce and Industry (DCCI) has expressed disappointment with the proposed national budget for the fiscal year 2025–26, stating that it fails to foster a business- and investment-friendly environment.
In an immediate reaction during a press briefing on Monday evening, DCCI President Taskin Ahmed said the budget lacks clear directives to boost investment, enhance the business climate, and implement reforms in the CMSME and banking sectors.
Ahmed emphasized that reducing loan interest rates should have been a key priority. He criticized the government’s increased reliance on bank borrowing to cover the budget deficit, describing it as a “negative aspect” that could undermine overall economic momentum.
“Although the budget includes measures aimed at curbing inflation, rising operational costs for businesses may slow economic growth,” he noted.
Ahmed also warned that the government’s high borrowing target from the financial sector could reduce loan availability for the private sector. He criticized the imposition of a 2% advance income tax on tax-exempt imports, saying it would limit businesses’ working capital.
Regarding personal income tax, he pointed out that eliminating the 5% tax slab would adversely impact nearly 50% of middle-income households. He urged the government to reconsider the decision to raise the turnover tax from 0.6% to 1%.
The DCCI president also expressed concern over the increase in import duties on automobile spare parts from 10% to 25%, which he said would raise local production costs. While the reduction in internet usage costs was welcomed, he cautioned that the increased VAT on locally produced mobile phones could hinder growth in the sector.
On raw materials and LNG, Ahmed acknowledged partial tax cuts but argued that while these may ease inflation temporarily, the budget contains no substantial measures to attract local or foreign investment.
He also criticized the absence of a clear roadmap for the SME sector, which employs 50% of the national workforce and involves over 8 million people.
On a positive note, Ahmed welcomed the initiative to establish a Tk 100 crore startup fund. However, he warned that the proposed increase in VAT on online transactions—from 5% to 15%—would hurt digital entrepreneurs and online businesses.
The DCCI called on the government to reconsider key tax policies and adopt a more strategic approach to support private sector growth and job creation.
DCCI Senior Vice President Rajib H. Chowdhury, Vice President Salim Solaiman, and other board members were also present at the press briefing.