Leading chambers give mixed reaction

Leading chambers and other organisations of the country came up with a mixed reaction over the budget announced on Monday for the fiscal year 2025-26.

The Foreign Investors Chamber of Commerce and Industry (FICCI) has expressed mixed reactions to the Finance Ordinance 2025, welcoming selected provisions while voicing concern over measures that may burden compliant taxpayers and hinder business growth.

In its post-budget statement, the FICCI appreciated the government's efforts to ease tax pressures on critical sectors.

The apex body of foreign investors welcomed the reduction in source tax for construction companies and essential goods, along with the decision to exclude dividends received by joint venture partners from taxable income -- a move that avoids double taxation.

However, the FICCI raised serious concerns over the imposition of an additional 7.5 per cent corporate tax on publicly listed companies with less than 10 per cent shares floated via IPO.

Terming it as 'discriminatory,' the chamber warned that this could disincentivise market listing.

It also criticised the withdrawal of reduced tax rates for transactions through banking channels, calling it a setback to Bangladesh's drive for a cashless economy and a competitive disadvantage compared to Vietnam and Indonesia.

For salaried taxpayers, the FICCI acknowledged the raised tax-free income threshold but noted that the overall changes may impose extra burdens on middle-income earners.

The chamber noted that while the introduction of a 7.5 per cent advance tax on commercial imports -- replacing VAT where local value addition is below 50 per cent -- simplifies procedures, it could raise costs for low value-added sectors.

Dhaka Chamber of Commerce and Industry (DCCI) President Taskin Ahmed said on Monday that despite some positive proposals in the national budget for fiscal year 2025-26, it lacks a clear roadmap for fostering an environment conducive to business, investment and private sector growth.

Giving his post-budget reaction at its office, the DCCI president welcomed initiatives such as inflation control measures, adjustments in minimum taxes, expanded allowable deductions, widening of the tax net, and the introduction of an automated tax return system.

However, he said these steps alone are not sufficient, as the budget does not offer specific directives on boosting investment, improving the ease of doing business, or reforming the CMSME and banking sectors.

In an immediate reaction on the proposed national budget Chittagong Chamber of Commerce and Industry (CCCI) welcomed it saying that the reduction in duties on petroleum products, LNG, and imported essential goods will not only lower commodity prices but also help stabilise the market and achieve the government's inflation control targets.

Muhammad Anwar Pasha, administrator of the CCCI, said the budget reflects the highest level of protection so far for domestic industries in light of the country's upcoming graduation from the Least Developed Country (LDC) status.

The American Chamber of Commerce in Bangladesh (AmCham) has welcomed key reform intentions in the proposed FY2025-26 national budget, but cautioned that bold structural changes, fiscal restraint, and enhanced investment confidence are critical for real progress.

In a statement issued after the budget announcement, AmCham expressed strong opposition to the proposed whitening of undisclosed income, warning that it undermines transparency and encourages corruption.

Instead, it advocated cutting unnecessary expenditures and deferring non-essential projects, noting that 57 per cent of the budget is allocated to salaries, subsidies, and debt servicing, with 22 per cent going to interest payments.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has welcomed the proposed national budget for the fiscal year 2025-26, calling it promising and industry-friendly amid ongoing local and global challenges.