The Metropolitan Chamber of Commerce and Industry, Dhaka has called on the government to ensure that the upcoming national budget for FY2026–27 is “supportive and growth-oriented” rather than “punitive,” amid mounting economic challenges facing businesses.
Speaking at a seminar titled “National Budget 2026–27: Private Sector Priorities and Perspectives” held at Lakeshore Hotel in the capital on Sunday, MCCI President Kamran T Rahman said the current global and domestic economic environment remains difficult for businesses.
The seminar was jointly organized by MCCI and the Economic Reporters Forum.
Rahman pointed to high inflation, sluggish investment, elevated interest rates, and pressure on foreign exchange reserves as key challenges, noting that small and medium enterprises (SMEs) are particularly hard hit.
“In this context, our expectation is that the upcoming budget should not be punitive, but rather supportive and growth-oriented,” he said.
He placed six key proposals on behalf of the chamber, including expansion and modernization of the tax net, reduction of corporate tax rates, introduction of a unified taxpayer profile, removal of legal inconsistencies, simplification of VAT and customs procedures, and stronger protection for the SME sector.
On tax reforms, Rahman highlighted that although more than 10 million taxpayers have Taxpayer Identification Numbers (TINs), less than half file returns.
He proposed full integration of National ID and TIN databases, along with the introduction of a symbolic minimum tax and simplified return filing through mobile applications to encourage compliance.
He also urged a reduction in corporate tax rates, arguing that strict conditions on cash transactions prevent many firms from benefiting from existing tax cuts.
Lowering tax rates for both listed and non-listed companies by an additional 2.5 percentage points could help attract new investment, he added.
Rahman further called for the creation of a unified taxpayer platform, replacing separate portals for income tax, VAT, and customs.
Such integration, along with online hearings and digital notice systems, would reduce administrative complexity and harassment, he said.
Raising concerns over regulatory barriers, he noted that mandatory provisions such as PSR requirements in 39 sectors hinder ease of doing business.
He also urged a review of certain provisions in the Income Tax Act 2023 that are inconsistent with business realities.
On VAT and customs, Rahman recommended allowing businesses to mention only quantity instead of value in certain forms to protect commercial confidentiality, and emphasized the need to base customs valuation on actual transaction prices while strengthening automation.
Highlighting the importance of SMEs, he called for separate tax policies and input tax credit facilities for the sector, along with reduced duties and VAT on raw materials to boost domestic industries.
Also speaking at the event, ERF President Daulat Akhtar Mala warned that revenue collection in the current fiscal year may fall short of the target by nearly Tk 1 trillion.
He cautioned that setting an overly ambitious revenue target in the next budget could increase pressure on existing taxpayers and discourage new ones.
He also raised concerns over tax compliance among high-income groups and alleged misuse of discretionary powers by tax officials, which sometimes leads to taxpayer harassment.
Mala further noted that despite plans since 2009 to introduce electronic fiscal devices for VAT collection, little progress has been made. He questioned how much tax collected from the informal sector is actually reaching the state coffer.