DCCI welcomes some measures taken in proposed budget

Dhaka Chamber of Commerce and Industry (DCCI) has welcomed some measures taken in the proposed national budget for the fiscal year 2025-26 (FY26) and suggested maintaining austerity in government expenditure.

“We have seen some positive steps such as controlling inflation, a few tax waivers, an automated return system, reducing a few advance tax, a central bonded warehouse, VAT waiver on LNG import,” said DCCI President Taskeen Ahmed in his initial budget reaction on Monday.

He said the Taka 1 billion fund for the youth entrepreneurs is a good move.

Regarding the tax-free income limit, he said that this year the tax-free income limit for the individual has kept almost unchanged, and this move will create an extra tax burden on the taxpayers, especially on the middle-income group and service-holders from next year.

On one hand, internet cost has been slashed, but on the other hand, VAT on mobile phones will increase, which will impede the required growth in the digitisation process, he added.  

Achieving the revenue collection target will be a big challenge for the government, he opined.

He also said that the government’s borrowing target from the banking system to mitigate the budget deficit will shrink private sector credit flow.

The DCCI president proposed a reduction of the cost of borrowing for businesses, saying that this rate should be between 6 per cent and 7 per cent.

He stressed on quality implementation of ADP.