Published: 09:59 AM, 20 April 2026
No new tax burden on businesses in upcoming national budget: Commerce Minister
Commerce Minister Khandakar Abdul Muktadir assured the business community that the upcoming national budget will not impose any new tax burden on businesses, as the government seeks to revive investment and trade amid mounting economic pressures.
Speaking at a pre-budget discussion organised by the Dhaka Chamber of Commerce & Industry (DCCI) at a city hotel on Monday, he said the government is facing severe financial strain due to “over-ambitious and unreasonable projects” undertaken by the previous administration.
He stressed that reducing the cost of doing business and simplifying access to government services are now essential to boosting private sector investment. Despite the economy’s size of around US$460 billion, nearly seven crore people remain below the poverty line, he noted, expressing concern over the country’s narrow taxpayer base.
The minister also said inadequate fuel storage capacity has forced Bangladesh to purchase energy from the spot market at higher prices amid the ongoing Middle East geopolitical crisis, adding pressure to the economy.
Against this backdrop, he reiterated the government’s commitment to maintaining close cooperation with the private sector and avoiding any increase in the tax burden in the forthcoming budget. At the discussion, DCCI President Taskeen Ahmed called for automation and simplification of the revenue system, expansion of the tax net, and raising the tax-free income threshold to Tk5 lakh.
He also proposed capping the highest income tax rate at 25%, aligning tax rates for listed and non-listed companies, and abolishing the advance VAT system.
Taskeen stressed the need for policy reforms to reduce non-performing loans (NPLs), stabilise foreign exchange reserves, rationalise interest rates, and ensure uninterrupted energy supply to industries.
Mahbubur Rahman, president of International Chamber of Commerce, Bangladesh, said high lending rates, reduced credit flow to the private sector, and persistent power shortages continue to discourage both local and foreign investment. He urged the government to frame the next budget cautiously and ensure a stable and predictable policy environment to restore business confidence.
Member (Secretary) of the General Economics Division at the Planning Commission Dr Monzur Hossain said reviving sluggish economic growth, affected by ongoing geopolitical tensions, is a key government priority.
He also emphasised promoting the CMSME sector to expand investment and accelerate research activities. Former DCCI president Rizwan Rahman criticised bureaucratic complexities and the failure to widen the tax net, warning that the burden is increasingly falling on existing taxpayers.
He also urged the government to avoid excessive money printing to help contain inflation. Bangladesh Bank (BB) Chief Economist Professor Dr Akhand Mohammad Akhtar Hossain highlighted the need to attract foreign investment, improve accountability in public services, and keep inflation under control.
Another former DCCI President Hossain Khaled said that only about 30% of transactions occur through formal channels, limiting effective revenue collection, and suggested that the current VAT system could be replaced with a GST framework.
KM Rezaul Hasanat David, president of the Bangladesh Independent Power Producers' Association, expressed concern over delays in establishing a land-based LNG terminal and stressed the importance of expanding energy storage capacity and attracting joint and foreign investment. Participants across the four thematic sessions on income tax and VAT, financial sector, industry and trade, and infrastructure emphasised the need for comprehensive reforms, including automation of the revenue system, realistic tax collection targets, uninterrupted energy supply, improved infrastructure, stable exchange rates, lower lending rates, and stronger governance in the financial sector. DCCI members, economists, researchers, and representatives from both public and private sectors also attended the event.
