The Metropolitan Chamber of Commerce and Industry (MCCBI) has expressed concerns over the high revenue target set in the proposed national budget for the fiscal year 2026-27. The chamber believes that achieving the target without structural reforms will be difficult, and it may lead to increased pressure on taxpayers and higher living costs for the general public.
Concerns over revenue target
The proposed budget aims to collect Tk 6.95 lakh crore in revenue, which is 18.2% higher than the revised target for the current fiscal year. The National Board of Revenue (NBR) has been assigned a target of Tk 6.04 lakh crore, which is 20.08% higher than the revised target. MCCBI noted that the NBR has only collected 65% of the revised target by April of the current fiscal year.
Investment and budget implementation concerns
MCCBI also expressed concerns over the stagnation in investment and the low implementation rate of the Annual Development Programme (ADP). The chamber highlighted that total investment as a percentage of GDP fell to 27.93% in the fiscal year 2025-26, the lowest in a decade. Private investment stood at 21.53% and public investment at 6.40%.
The chamber believes that the decline in investment is hindering job creation and increasing the risk of poverty. Although the approval of a Tk 3 lakh crore ADP is positive, MCCBI raised questions about the implementation capacity. The ADP implementation rate for the period of July-April of the current fiscal year was only 41.41%.
Positive aspects of the budget
MCCBI welcomed the allocation of Tk 1.44 lakh crore for social safety nets and the expansion of the Family Card and Farmer Card programs. The chamber believes that these initiatives will help maintain domestic demand. MCCBI also appreciated the changes in tax-related provisions, the reduction in advance tax payment rates for tax tribunals and appeals, and the expansion of paperless VAT administration and online tax services.
Concerns over minimum turnover tax
However, MCCBI expressed concerns over the lack of initiatives to rationalize the minimum turnover tax. The chamber believes that the absence of a provision to refund the minimum turnover tax is harming businesses' cash flow and reinvestment capacity.
Data connectivity and privacy concerns
MCCBI also raised concerns over the proposed data connectivity system. The chamber believes that without strong legal and technical safeguards, the implementation of such a system could lead to the misuse of personal data and unauthorized surveillance.
Call for transparency and balance
MCCBI emphasized the need for transparency in tax administration while maintaining a balance between taxpayers' personal rights and accountability. The chamber also recommended reviewing the progress of budget implementation every three months to make necessary adjustments.
Commitment to economic reforms
MCCBI pledged to continue working with the government to promote economic reforms and create an investment-friendly environment.
