B Mirror Report: In order to ensure macroeconomic stability and broaden the tax base, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has proposed a number of business-friendly fiscal and structural reforms in the upcoming FY2026–2027 national budget, including raising the tax-free income ceiling to Tk 5 lakh.

The recommendations were made on Tuesday during the 46th meeting of the National Board of Revenue (NBR) and FBCCI consultation committee, which took place at a downtown hotel.

The proposals were delivered to Commerce Minister Khandakar Abdul Muktadir and Finance Minister Amir Khosru Mahmud Chowdhury by FBCCI Administrator Md. Abdur Rahim Khan.

Citing global and domestic economic challenges, including geopolitical tensions and Bangladesh’s upcoming graduation from the Least Developed Country (LDC) category, the FBCCI called for pragmatic fiscal measures to sustain economic growth.

Under its tax proposals, the apex trade body suggested increasing the individual tax-free income limit to Tk 5 lakh, and Tk 5.50 lakh for women and senior citizens.

It also recommended reducing the corporate tax rate for non-listed companies from 27.5 percent to 25 percent, with a long-term target of 20–22 percent, and cutting the minimum tax rate from 1 percent to 0.5 percent with gradual withdrawal.

The FBCCI further proposed lowering advance tax on imported raw materials from 2 percent to 1 percent and introducing electronic invoicing to improve transparency and compliance.

The organization also supported raising the tax-to-GDP ratio to 15 percent by 2035 through widening the tax net and improving revenue efficiency.

On the financial sector, it stressed ensuring Bangladesh Bank’s independence, reducing interest rates to maintain competitiveness, and establishing separate Large and Medium Taxpayer Units in Dhaka and Chattogram.

To curb illicit financial flows, the FBCCI urged stronger measures against money laundering and efforts to recover laundered assets.

For export growth, it proposed maintaining a 0.50 percent source tax for the ready-made garment sector and other export-oriented industries for five years, expanding the Export Development Fund (EDF), and setting up a central bonded warehouse for small exporters.

It also recommended utility incentives in electricity, gas, and water for export-oriented industries to boost global competitiveness.

The FBCCI reiterated its vision of transforming Bangladesh into a $1 trillion economy by 2034 and creating 1 crore jobs within five years, while also emphasizing stronger social safety nets and increased allowances for vulnerable groups.

It further highlighted investment in emerging sectors such as artificial intelligence-based training, nursing, and language education to enhance overseas employment opportunities.