FICCI urges wider tax base reforms

Foreign investors have called on the government to prioritise broadening the tax base rather than increasing the burden on existing taxpayers.
They argued that stronger compliance, policy stability and an improved business environment are essential for sustainable revenue mobilisation and long-term investment growth.
Welcoming the proposed FY2026-27 budget at a post-budget press conference in Dhaka on Thursday, The Foreign Investors' Chamber of Commerce and Industry (FICCI) said that sustainable revenue growth will depend on bringing more individuals and businesses into the tax net.
FICCI President Rupali Haque Chowdhury said the government's efforts to maintain economic stability amid global and domestic challenges were encouraging.
However, she stressed that Bangladesh's upcoming graduation from the least developed country (LDC) category requires structural tax reforms and greater policy consistency to remain competitive in attracting foreign investment.
To strengthen revenue mobilisation, FICCI recommended bringing non-filers under the tax net, making proof of tax return submission mandatory for the renewal of licences and permits, and introducing an integrated verification system linking tax and VAT records.
The chamber also cautioned that tax incentives alone would not be sufficient to stimulate investment.
Ms Chowdhury said resolving gas shortages and other utility-related constraints in economic zones was equally important, warning that additional surcharges on utility services could undermine investor confidence and discourage fresh investment.
Identifying inflation as the country's most pressing economic challenge, FICCI called for a clear strategy to reduce price pressures and achieve the government's inflation targets.
The chamber, however, welcomed the proposed incentives for green initiatives and solar energy projects.
FICCI Tax Adviser Snehasish Barua proposed establishing a dedicated data and analytics unit under the National Board of Revenue (NBR) to assess sector-wise revenue contributions and improve policy planning.
He also suggested conducting a comprehensive study on the scope for expanding the tax base before maintaining the top individual income tax rate at 35 per cent.
Among those present at the event were FICCI Vice-President Mohammad Iqbal Chowdhury, Director Habibur Rahman Bhuiyan and Executive Director T I M Nurul Kabir.

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