The Metropolitan Chamber of Commerce and Industry (MCCI) has warned that efforts to achieve the government’s ambitious revenue collection target without structural reforms could increase harassment of taxpayers.

In its reaction to the proposed FY2026-27 budget, the chamber said the Tk 695,000 crore revenue target is overly ambitious, being 18.2 percent higher than the revised target for the current fiscal year, and may be difficult to achieve without major reforms in tax administration.

MCCI welcomed initiatives to expand the tax net, modernise tax administration and promote digitalisation, but stressed that tax policy reforms, automation, improved administrative capacity and efficient budget management are essential for successful implementation of the budget.

The chamber also expressed concern over the country’s investment situation, noting that total investment in FY2025-26 declined to 27.93 percent of GDP, the lowest level in a decade. It warned that lower investment is reducing employment opportunities and increasing poverty risks.

While describing the record Tk 300,000 crore Annual Development Programme (ADP) as positive for economic growth, MCCI questioned the government’s implementation capacity, pointing out that only 65 percent of the revenue target and 41.41 percent of ADP implementation had been achieved during July-April of the current fiscal year.

The chamber welcomed investment-friendly initiatives, including one-stop digital services, expansion of trade agreements and the proposed Tk 60,000 crore Stimulus Package-2026, saying these measures could support industrialisation, foreign investment and job creation.

However, MCCI expressed concern over the reduction in tax rebates on individual investments and the lack of reforms to the minimum turnover tax, warning that these measures could discourage savings and investment and negatively affect business cash flow and competitiveness.