The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has raised significant concerns over several provisions in the proposed national budget for FY2025–26, warning that they could hinder business growth and discourage foreign investment.
In its initial reaction, FICCI acknowledged some positive aspects of the Finance Bill, including steps towards a more predictable tax regime and relief for specific sectors. 
The reduction of source tax on construction and essential goods was welcomed as a pragmatic move to support vital industries. 
FICCI also praised the exclusion of dividends received from joint ventures from additional taxation, calling it a fair step to avoid double taxation.
The chamber further lauded the government’s alignment with international standards by ensuring that Double Taxation Avoidance Agreements (DTAAs) take precedence over the Income Tax Act 2023.
However, several proposals have triggered concern. Chief among them is the imposition of an additional 7.5% corporate tax on publicly listed companies with less than 10% of their shares floated through IPOs—a measure FICCI described as discriminatory.
Another key concern is the withdrawal of tax benefits for companies conducting large transactions via banking channels. FICCI warned that this move contradicts national efforts to promote a cashless economy and puts Bangladesh at a competitive disadvantage compared to countries like Vietnam and Indonesia.
For salaried individuals, while the increased tax-free income threshold is a welcome change, FICCI argued that overall tax adjustments may impose a heavier burden on the middle class.
The chamber also expressed mixed views on the new 7.5% advance tax (AT) on commercial imports. While it simplifies VAT settlement where local value addition is below 50%, FICCI cautioned that it could raise costs for low-value-added industries. Extending the VAT rebate/refund period from four to six months was, however, seen as a positive step to ease working capital pressure.
FICCI strongly criticised the hike in VAT on online sales—from 5% to 15%—warning that the move could stifle growth in the emerging e-commerce sector.
On the regulatory front, FICCI welcomed progress in digitalisation, particularly the shift to electronic record-keeping through ERP systems, eliminating the need for paper-based documentation.
Amendments to modernise the Customs Act 2023 were also viewed positively. The alignment of the duty structure with trade policy, revision and expansion of HS codes, and reduced penalties for import-related violations are expected to ease the import process and improve compliance.

Budget overview

The proposed national budget for FY2025–26 stands at Tk7.9 lakh crore, or 12.7% of GDP. This includes Tk5.6 lakh crore for operating and other expenditures and Tk2.3 lakh crore for development programs. The revenue target is set at Tk5.64 lakh crore (9% of GDP), leaving a deficit of Tk2.26 lakh crore (3.6% of GDP), to be financed through domestic and foreign borrowing.
Notable allocations include Tk35,403 crore for Primary and Mass Education, Tk47,563 crore for Secondary and Higher Education, Tk41,908 crore for Health, Tk39,620 crore for Agriculture, and Tk5,040 crore for the Public-Private Partnership Fund.
FICCI sees the proposed PPP fund allocation as a step toward encouraging greater private and foreign investment in infrastructure and development projects.