12/05/2026
Japan Bangladesh Chamber of commerce and Industry (JBCCI) successfully organized a Press Conference on the “National Budget 2026–2027” on May 10, 2026, at Ascott The Residence Dhaka.
In the opening remarks, Mr. Tareq Rafi Bhuiyan (Jun), President of JBCCI, stated that Bangladesh is currently navigating a critical economic transition amid global uncertainty, inflationary pressure, rising financing costs, and preparations for post-LDC graduation. He emphasized that the upcoming national budget should prioritize investment-led growth, industrial competitiveness, and fiscal modernization rather than focusing primarily on revenue collection.
He proposed reducing the corporate tax rate for the private sector from 25% to 20%, restoring the 15% tax rate for the textile sector, rationalizing TDS rates, and simplifying VAT procedures to improve competitiveness and encourage investment. He further stressed the importance of policy consistency, digitalization of tax administration, expansion of the tax base, and targeted support for key sectors to ensure sustainable economic growth and enhance Bangladesh’s attractiveness as a regional investment destination.
Ms. Maria Howlader FCA, Secretary General of JBCCI, presented the chamber’s budget proposals focusing on improving the business environment and investment climate in Bangladesh. She recommended introducing a faster and automated VAT and income tax refund system to reduce liquidity pressure on businesses.
She further highlighted concerns regarding high Tax Deducted at Source (TDS) rates, which are increasing business costs and affecting cash flow, and recommended rationalizing TDS, withdrawing minimum tax obligations for loss-making companies, and implementing broader VAT and tax reforms to support sustainable economic growth.
Speaking at the event, Mr. Matiur Rahman, Founding President of JBCCI and Chairman of Uttara Group, stated that the automobile sector has the potential to become a major driver of export-led growth if supported by a clear and time-bound government policy roadmap. He projected that domestic vehicle sales could exceed 500,000 units annually by 2030 with appropriate policy support. He also recommended gradually reducing the dominance of used vehicles in the market to encourage local automobile assembly and attract foreign investment in the sector.
Mr. Md. Anwar Shahid, Vice President of JBCCI, expressed concern regarding the textile sector, noting that the industry previously enjoyed a 15 percent tax rate until 2025 but is now subject to the standard rate. He urged the government to restore the reduced tax rate in order to protect employment and sustain Bangladesh’s competitiveness in global supply chains amid rising production costs.
JBCCI Adviser and Past President Mr. Asif A. Chowdhury highlighted challenges in the logistics sector, noting that logistics costs in Bangladesh account for 12–15 percent of GDP, compared to 8–10 percent in competing economies. He proposed introducing 24-hour night navigation for vessels and expanding automated off-dock facilities to improve trade efficiency. Mr. Chowdhury also recommended a gradual reduction of corporate tax by 1 percentage point annually over the next five years beginning July 1, 2026, stating that such a phased approach would help maintain government revenue stability while sending a positive signal to investors.
Mr. Manabu Sugawara emphasized the importance of improving port facilities, simplifying customs procedures at airports and seaports, strengthening road connectivity, and ensuring a stable power supply to support investment and industrial growth.
The overall recommendations presented by JBCCI also included lower source tax on exports, tax holidays for strategic industries, VAT exemptions on machinery and raw materials, and incentives for green and sustainable investments.
