DCCI Welcomes Select Measures in Proposed FY2025–26 Budget
Dhaka Chamber of Commerce and Industry (DCCI) today 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, few tax waivers, automated return system, reducing few advance tax, central bonded warehouse, VAT waiver on LNG import,” said DCCI President Taskeen Ahmed in his initial budget reaction. He said Taka 100 crore fund for the youth entrepreneurs is a good move. Regarding 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 extra tax burden on the taxpayers especially on the middle income group and service-holders from the 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 digitization process, he added. Achieving 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 budget deficit will shrink private sector credit flow. The DCCI president proposed the government to reduce the cost of borrowing for the businesses, saying that this rate should be between 6% and 7%. He stressed on quality implementation of ADP.
