Commerce and Industries Minister Khandakar Abdul Muktadir on Monday said the government plans to expand the tax net to strengthen fiscal discipline without increasing personal tax rates.
"We will focus on bringing more individuals under taxation rather than raising rates," he said at a pre-budget discussion organised by the Dhaka Chamber of Commerce and Industry at InterContinental Dhaka.
The event was attended by Planning Commission member Dr Monzur Hossain and International Chamber of Commerce Bangladesh (ICCB) President Mahbubur Rahman as special guests, and moderated by DCCI President Taskeen Ahmed.
The minister assured that the upcoming budget would not impose additional burdens on businesses and expressed confidence in the government's economic management.
He also dismissed concerns about adverse measures targeting businesses, describing the finance minister as business-friendly and capable.
Referring to global developments, he said geopolitical tensions, particularly in the Middle East, have pushed up commodity prices sharply, limiting fiscal flexibility.
LNG prices have doubled, crude oil has surged to around $116 per barrel, and fertiliser prices have also risen significantly.
He added that concerns raised by European Union partners -- which account for 44 per cent of Bangladesh's exports -- over non-tariff barriers would be addressed.
Mahbubur Rahman, president of ICC Bangladesh, warned that nearly half of the country's banks are at risk of bankruptcy, raising serious concerns about financial stability.
"Almost half of the country's banks are in a position where they could go bankrupt," he said, adding that the risk extends to all state-owned banks. However, no bank has formally entered bankruptcy due to weak enforcement of banking and insolvency laws, allowing troubled institutions to continue operating.
He noted that state-owned banks carry higher risks due to their size and liabilities. Non-performing loans (NPLs) have already reached around 36 per cent and could rise to 46 per cent, reflecting deep-rooted weaknesses in the sector.
Such instability is undermining investor confidence and constraining economic growth, he said, adding that businesses are struggling with high interest rates, liquidity shortages and tighter credit conditions.
Rahman also highlighted policy inconsistency as a major barrier to investment, stressing the need for a predictable and stable policy environment for both local and foreign investors.
The DCCI proposed raising the tax-free income threshold to Tk 0.5 million and reducing the maximum tax rate to 25 per cent in the FY27 budget.
It noted that nearly 80 per cent of the economy remains informal, resulting in significant revenue losses, and suggested automation and simplification of the tax system to broaden the tax base.
DCCI President Taskeen Ahmed highlighted growing global uncertainty driven by geopolitical tensions, noting that rising fuel prices, pressure on foreign exchange reserves, higher import costs and supply chain disruptions are creating challenges for Bangladesh.
These factors are contributing to higher production costs, transport expenses and inflation, he said, stressing the need for a pragmatic budget focused on purchasing power, cost of living and economic stability.
The chamber placed 23 proposals for the upcoming budget, including aligning tax rates for non-listed companies with listed firms at 25 per cent.
It also recommended phasing out advance tax for manufacturers, reducing it for importers, and applying VAT only at the final stage.
Former DCCI president Rizwan Rahman identified bureaucratic inefficiencies as a major obstacle to doing business, describing the National Board of Revenue (NBR) as a key barrier.
He said limited automation and lack of AI-based risk profiling have enabled misuse of HS codes, leading to revenue leakages.
Planning Commission member Monzur Hossain described the economy as fragile and said restoring stable growth would be the government's priority in the next budget.
Akhand Mohammad Akhtar Hossain, chief economist of Bangladesh Bank, advised against a populist budget and recommended a conservative fiscal stance alongside tight monetary policy to navigate global uncertainties.
City Bank Chairman Hossain Khaled urged policymakers to bring undisclosed income into the formal economy through effective measures, warning that such funds could otherwise flow abroad.
Other speakers included DSE Chairman Mominul Islam, UCB Chairman Sharif Zahir, ICMAB President Md Kausar Alam, BPGMEA President Shamim Ahmed, BIPPA President David Hasanat and Confidence Group Chairman Imran Karim, among others.
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