No plan to increase new tax burden on business; Commerce Minister

‘Live pre-budget discussion: private sector perspective’ organized by Dhaka Chamber of Commerce & Industry (DCCI) in cooperation with Channel 24 and Samakal was held on April 13, 2026 at a city hotel, Dhaka. Khandakar Abdul Muktadir, MP, Minister for Commerce, GoBattended the event as the Chief Guest while Dr. Monzur Hossain, Member (Secretary), General Economics Division, Planning Commission, Ministry of Planning, GoB and Mahbubur Rahman, President, International Chamber of Commerce (ICC), Bangladesh were present as Special Guests.

The discussion was moderated by DCCI President Taskeen Ahmed and Shahed Muhammad Ali, Editor of The Daily Samakal delivered vote of thanks.

In his welcome remarks, DCCI President Taskeen Ahmed stated that to sustain economic growth momentum, automation and simplification of revenue collection, as well as expanding the tax net, are essential. He proposed raising the tax-free income threshold to BDT 500,000, setting the maximum tax rate at 25%, and aligning the tax rate of non-listed companies with listed companies at 25%. He also suggested abolishing the advance VAT system. He further stressed modernizing financial sector policies to ensure sustainability and stability, reducing non-performing loans (NPL), stabilizing foreign exchange reserves, and rationalizing policy interest rates to expand investment in manufacturing sectors.

He highlighted the importance of uninterrupted energy supply, diversification of export products, and expansion of export markets, along with providing policy and financial incentives in potential sectors in the upcoming budget. To accelerate economic growth, he proposed sustainable infrastructure development—especially in transport and logistics—introduction of infrastructure bonds, and ensuring energy security through agreements with exporting countries to stabilize fuel prices. He also called for effective policy support to rebuild local trade and investment affected by recent Middle East tensions and global trade instability, and for reforms in the revenue structure to promote renewable energy use.

Commerce Minister Khandakar Abdul Muktadir, MP stated that the government is under immense financial pressure due to some unreasonable and over-ambitious projects undertaken by the previous administration. He said that there is no alternative to reducing the cost of doing business and simplifying the process of obtaining government services in order to increase private sector investment and trade activities. The minister further mentioned that although the Bangladesh’s GDP is approximately equivalent to USD460 billion, around 70 million people are still living below poverty line. He also expressed concern that despite such a large population, the number of taxpayers is significantly low. He added that due to lack of proper energy storage capacity, the country is forced to purchase fuel at higher prices from the spot market to deal with the current ongoing geopolitical crisis in the Middle East. He assured that the tax burden on businesses will not be increased in the upcoming budget. At the same time, he expressed commitment to continuing close cooperation between the government and the private sector in the future.

Mahbubur Rahman, President, International Chamber of Commerce (ICC), Bangladesh said that the current government should focus on formulating the upcoming budget cautiously, taking into account the challenges faced by the private sector. He expressed that although the call for increasing the tax-GDP ratio have been made for a long time, in reality there has been lack of effective initiatives from the government to implement them. He also noted that high interest rates on loans, reduced credit flow to the private sector, and ongoing electricity and energy shortages are discouraging both local and foreign investment. To address the crisis, he urged the government to urgently explore alternative sources for energy imports and reduce reliance on intermediaries. He further emphasized that ensuring a stable and predictable policy environment is essential for boosting investment.

Dr. Monzur Hossain, Member (Secretary), General Economics Division, Planning Commission, Ministry of Planning, GoB said that one of the government’s key goals is to revive the sluggish economic growth caused by the ongoing geopolitical crisis. He also emphasized the importance of promoting the CMSME sector to expand investment, along with accelerating research activities.

The discussion featured four thematic sessions: Income Tax & VAT, Financial Sector, Industry & Trade, and Infrastructure. DCC former Presidents Rizwan Rahman and Barrister Sameer Sattar, President of Institute of Cost and Management Accountants of Bangladesh (ICMAB) Md. Kausar Alam FCMA, Zahirul Alam, Executive Director, Channel 24, President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Shamim Ahmed, former President of DCCI Shams Mahmud, Chief Economist, Bangladesh Bank, Professor Dr. Akhand Mohammad Akhtar Hossain,  Chairman of Dhaka Stock Exchange (DSE) PLC Mominul Islam, Chairman, United Commercial Bank PLC (UCB) of Sharif Zahir of DCCI former President Hossain Khaled, President of Bangladesh Independent Power Producers’ Association (BIPPA) David Hasanat, Chairman of Confidence Group Imran Karim and Fonder Chairman of Bangladesh Steel Manufacturers Association Sheikh Masadul Alam Masud spoke on the four respective session as designated discussants. 

Rizwan Rahman, former president of Dhaka Chamber of Commerce and Industry (DCCI), said that the private sector is being severely affected by bureaucratic complexities and bullying behavior from the National Board of Revenue (NBR). He noted that as there is no effective initiative from the NBR to increase tax net, the burden on existing taxpayers is gradually rising. He called for incentives to encourage investment at the grassroots level and stated that the tendency of printing money to meet the market demand should be avoided in order to reduce inflation. Rizwan Rahman also proposed increasing budget allocations for the healthcare and education sectors in the upcoming budget.

Hossain Khaled, former president, DCCI said that the tax collection system should be fully automated and banking sector should be included in this regard to facilitate this process. He mentioned that approximately 30% of total transactions take place through formal channels and since most transactions remain outside the financial system, the government is failing to collect actual revenue effectively. He also expressed that the existing VAT system could be replaced with a GST (Goods and Services Tax) system.

Chief Economist of Bangladesh Bank, Professor Dr. Akhand Mohammad Akhtar Hossain, emphasized the importance of increasing foreign investment to create employment opportunities, ensuring accountability in the delivery of government services, and controlling inflation.

David Hasanat, President, Bangladesh Independent Power Producers’ Association (BIPPA) said that although a tender was invited seven years ago to establish a land-based LNG terminal, it has yet to see the light of day, which is extremely disappointing. He also emphasized the need to increase energy storage capacity and to attract joint and foreign investment in this sector.

Imran Karim Chairman of Confidence Group said that due to lack of confidence in the capital market, middle and upper-income groups are still not interested in investing. He added that although the market index was around 4,000–5,000 points in 2009, it is still hovering within the same range, which is not desirable at all.

Other speakers emphasized setting realistic tax collection targets, introducing a unified VAT rate, automating the revenue system, reconsidering the LDC graduation timeline, ensuring uninterrupted gas and electricity supply to industries, improving infrastructure, reducing advance tax deductions, ensuring governance in the financial sector, stabilizing exchange rates, lowering lending interest rates, developing a strong bond market, and restoring confidence in the capital market.

DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman, members of the Board of Directors, former presidents, researchers, economists, and representatives from both public and private sectors were also present at the event.