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FY27 Budget Aligns with BIDA’s Proposals, Signaling Continued Investment-Friendly Policies

The FY27 budget in Bangladesh aligns closely with BIDA's proposals, signaling continued investment-friendly policies.

By Staff Correspondent
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FY27 budget reflects majority of BIDA’s sectoral, policy, deregulation proposals | Business
BSS

DHAKA — The Bangladesh Investment Development Authority (BIDA) held a briefing today at Biniyog Bhaban in Agargaon to discuss the key investment-related measures introduced through the national budget for FY 2026–27. The session, chaired by BIDA Executive Chairman Ashik Chowdhury, focused on three priorities: deregulation, long-term tax stability, and targeted incentives for strategic sectors. The briefing noted that 82% of BIDA's sectoral and policy recommendations and 63% of its deregulation recommendations were reflected in the budget.

Among the major deregulation measures are a 14-day service-level commitment for single-window business approvals, automatic approval if timelines are missed, three-year validity for bond licenses, and wider operational coverage for bonded facilities. The budget also expands expedited customs clearance and allows testing reports from private laboratories during customs clearance.

Several measures aim to make capital movement and tax administration more predictable. These include defined timelines for profit and NITA-account repatriation, a higher threshold for repatriation without prior Bangladesh Bank approval, mandatory electronic VAT filing, automated BIN issuance and refunds, and a one-year deadline for completing audits. The pre-deposit required to challenge tax assessments has also been reduced substantially.

The budget removes the minimum 30% value-addition requirement for export goods produced using duty-free imported materials. Additionally, ten additional sectors will be able to import raw materials through bank guarantees without obtaining bond licenses. Longer policy horizons have been provided for several investment categories, including personal income-tax thresholds and slabs set through FY 2030–31.

Targeted incentives were introduced across various sectors, including ICT and digital services, renewable energy, electric vehicles, apparel and textiles, pharmaceuticals and medical devices, agro-processing, logistics, and precious metals. Measures include reduced or zero duties on selected machinery, components, and industrial inputs; support for startup financing; incentives for export-oriented production; and 100% foreign ownership of inland container depots.

Ashik Chowdhury highlighted that the budget signals policy continuity, reflects Bangladesh’s priority sectors, and supports the goal of emerging as a regional manufacturing hub. The briefing was attended by representatives of various diplomatic missions and investment promotion agencies, alongside local and international companies.

Source: BSS

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