Foreign Investors’ Chamber of Commerce & Industry (FICCI), in collaboration with The Institute of Chartered Accountants of Bangladesh (ICAB) and the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) hosted a seminar titled “Fiscal Issues for National Budget 2025-26 to Foster Economic and Business Growth” on May 4 at Sheraton Dhaka. Bringing together policymakers, business leaders, and economic experts, the event provided a platform to discuss key fiscal priorities ahead of the upcoming national budget.
Md. Abdur Rahman Khan FCMA, Secretary of the Internal Resources Division and Chairman of the National Board of Revenue (NBR), attended as the Chief Guest, while ICAB’s Council Member and Past President, Mohammed Humayun Kabir FCA, chaired the session. The seminar featured insightful keynote presentations from M Masrur Reaz, Chairman of Policy Exchange Bangladesh, and Snehasish Barua FCA, Partner at Snehasish Mahmud & Co., Chartered Accountants.
Dr. M Masrur Reaz highlighted the formidable challenges facing Bangladesh’s economy, emphasizing that its resilience is being tested amid global economic uncertainty. “With inflation hovering near double digits and foreign direct investment at a six-year low, Bangladesh must take decisive fiscal and monetary action to navigate these headwinds,” he remarked. He called for urgent structural reforms in debt management, governance, and banking sector regulation, stressing that rising debt servicing costs are limiting productive investments while fragmented institutional coordination hampers effective policy responses. Greater transparency in public investments and the revitalization of capital markets, he noted, would be essential in reducing dependence on bank borrowing.
Despite these challenges, he pointed to signs of optimism, noting that exports are gradually rebounding and remittances remain strong. However, he warned that sustaining this momentum requires policy consistency, supply-side improvements, and robust fiscal reforms that strengthen investor confidence and financial discipline.
Echoing these concerns, Snehasish Barua stressed the need for bold fiscal policies in the upcoming budget. “Incremental changes won’t be enough—we need a forward-thinking, investment-friendly strategy that directly addresses revenue mobilization, rising debt, and tax compliance,” he said. He highlighted Bangladesh’s low tax-to-GDP ratio as a key issue, calling for a broader tax base, VAT modernization, and full automation of tax administration to improve transparency and compliance. Additionally, he underscored the importance of ensuring an investment-friendly climate, advocating for policies that facilitate private sector growth, support export diversification, and enhance ease of doing business to bolster both domestic and foreign investor confidence.
The seminar also featured an engaging panel discussion with industry leaders, including Mohammad Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh Limited; Manabu Sugawara, Country Head of Bangladesh at Marubeni Corporation; Yuji Ando, Joint Secretary General of JBCCI; Dr. Abdul Mannan Shikder, Former Member of NBR; and Md. Afzal Hossain, Former Secretary to the Government.
NBR Chairman Abdur Rahman Khan addressed the issues raised during the discussion, saying that most investment-related tax matters have already been resolved by the National Board of Revenue (NBR). He assured that NBR is working closely with stakeholders to solve the remaining problems. He also highlighted the government’s focus on a responsible national budget and warned against too much borrowing, which could be a burden for future generations. Reaffirming the government’s support for business-friendly reforms, he stressed the need to improve enforcement to stop tax non-compliance. He further announced an important policy change—moving the power to grant tax exemptions to Parliament. This step is expected to increase transparency, reduce undue influence, make it easier to do business, and better connect fiscal policy with long-term economic goals.
ICAB President Maria Howlader FCA emphasized the need for predictable tax policies, digitalization, and structural reforms to create a more business-friendly environment. She highlighted controlling of inflation, enhancing revenue mobilization and promoting Sustainable Investment. We need to set a predictable tax policy and ensure consistency – investors and the Businesses plan on the basis of existing policy, but sudden changes within six months discourage, she added.
We call for a clear pathway to ensure discipline in revenue management and public expenditure, questioning. Without confidence being restored among local investors, why would foreign investors come to Bangladesh to invest, she questioned.
She also said, Bangladesh’s economy, like many others, continues to be influenced by global price fluctuations and political developments. Domestically, inflation remains a major concern, with general inflation rates persisting at around 9–10%. To address inflation effectively, it is essential to ensure better coordination between fiscal and monetary policies. Unchecked fiscal deficits and excessive government borrowing can intensify inflationary pressures, ultimately threatening overall economic stability, she observed.
She urged policymakers to focus not just on revenue collection but also on trade facilitation, advocating for automation, institutional coordination, and policy stability to restore investor confidence.
FICCI President Zaved Akhtar emphasized the need for an integrated tax system to enhance revenue collection while ensuring transparency and efficiency. He stressed the importance of distinguishing policy formulation from revenue administration to foster fairness and predictability. Optimizing tax rates—through rationalizing TDS, eliminating inadmissibility thresholds, and phasing out minimum tax—will be key to attracting foreign investment. He also advocated for a unified VAT rate, proper classification of raw materials, and the gradual removal of non-tariff barriers to strengthen Bangladesh’s trade competitiveness amid its upcoming LDC graduation.
JBCCI President Tareq Rafi Bhuiyan (Jun) welcomed the upcoming budget’s focus on improving ease of business, highlighting its potential to attract investment and foster stronger Bangladesh-Japan economic ties.
