The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has called for sweeping tax and regulatory reforms in Bangladesh, urging the government to broaden the tax base, accelerate digitalisation of revenue administration and create a more competitive investment environment to sustain economic growth ahead of the country’s graduation from Least Developed Country (LDC) status.
Speaking at a post-budget press briefing in Dhaka on Thursday, FICCI President Rupali Haque Chowdhury described the proposed FY2026-27 national budget as “positive and relatively predictable”, while stressing that long-term revenue growth and investment would depend on structural reforms, policy consistency and improved ease of doing business.
She welcomed increased allocations for social protection programmes, healthcare and education, saying effective implementation would improve living standards and strengthen Bangladesh’s human capital base.
Chowdhury also praised incentives for renewable energy and green initiatives, particularly measures supporting solar power, arguing that they could help reduce the country’s dependence on imported fossil fuels and cushion the economy against volatile global energy prices.
However, she identified inflation as Bangladesh’s most pressing economic challenge, noting that the government had set a target of reducing inflation from around 9.5% to 7.5%.
“Achieving this objective will require a clear strategy and a credible implementation roadmap,” she said.
FICCI expressed concern that successive budget deficits have frequently been addressed through higher indirect taxes and supplementary duties, increasing the burden on compliant taxpayers and raising the effective tax rate in several sectors compared with competing economies.
The chamber urged authorities to prioritise expansion of the tax net by bringing non-filers into the system and strengthening compliance requirements. Among its proposals were making Proof of Submission of Return (PSR) mandatory for issuing and renewing licences and permits, introducing PSR requirements for VAT return submissions, and implementing cross-checking mechanisms between suppliers’ tax returns and withholding tax records.
Presenting the organisation’s detailed recommendations, tax consultant Snehasish Barua called for a comprehensive automation roadmap integrating customs, VAT and income tax systems. FICCI said greater interoperability between revenue platforms and other government agencies would improve efficiency, transparency and revenue collection.
The chamber also proposed the creation of a dedicated data analytics unit within the National Board of Revenue (NBR) to monitor industry performance and identify tax compliance gaps.
To improve the investment climate, FICCI recommended lowering corporate tax rates, reducing minimum taxes on sales, reviewing personal income tax thresholds in line with inflation, and encouraging a gradual transition towards a cashless economy.
The business body further urged reforms to customs procedures, including faster clearance of capital machinery, improved classification of raw materials and intermediate goods, and the gradual removal of non-tariff barriers as Bangladesh prepares for LDC graduation.
FICCI also called for Time Release Studies to speed up cargo clearance and opposed proposed increases in supplementary duties on raw materials, arguing that such measures could undermine industrial competitiveness.