The proposed national budget for FY2026-27 is business and investment friendly, but its real test lies in achieving ambitious revenue targets and translating announced reforms into action, the Dhaka Chamber of Commerce & Industry (DCCI) said on Thrusday.

"The actual success will depend on achieving the ambitious revenue targets and ensuring the effective implementation of the announced reforms," DCCI President Taskeen Ahmed said at the chamber's initial reaction programme on the proposed budget, held at the DCCI Auditorium.

The BDT 9,38,000 crore budget, 19.04% larger than the previous fiscal year, targets 30.34% revenue growth, which Taskeen described as "highly challenging under the current economic circumstances."

He also cautioned that heavy reliance on borrowing to finance the deficit could strain the banking sector and crowd out private-sector credit.

The proposed Annual Development Programme (ADP), set at BDT 3,00,000 crore, a 30% jump over last year, drew measured praise, though the DCCI flagged that the current fiscal year's ADP implementation rate of just 36.19% exposed deep execution weaknesses.

"Emphasis should be placed not only on larger allocations but also on ensuring effective implementation," the chamber said.

On taxation, DCCI welcomed several measures, including the treatment of withholding tax as advance tax, a longstanding business demand, the reduction of withholding tax on industrial raw materials to 4%, a 0.5% withholding tax on 60 essential commodities, and a five-year advance tax structure for healthcare, renewable energy and electric vehicle sectors.

However, the chamber expressed disappointment that the tax-free income threshold remained unchanged despite persistent inflation, and took issue with the top personal income tax rate being set at 35%.

DCCI called on the government to raise the tax-free threshold to BDT 5,00,000. For smaller businesses, the chamber praised the exemption of turnover tax for SME entrepreneurs with annual turnover up to BDT 50 lakh, extendable to BDT 70 lakh for women entrepreneurs and persons with disabilities, along with the introduction of e-loans of up to BDT 50,000 under Bangladesh Bank's BDT 60,000 crore stimulus package.

On energy, DCCI welcomed EV-related incentives, including VAT exemption until 2030 and zero-duty import facilities for EV charging equipment, but said measures for gas exploration and well drilling fell short of the country's growing demand.

It urged the government to develop a long-term energy pricing framework through stakeholder consultation, warning that short-term subsidies without a clear pricing structure could encourage inefficiency over investment.

Other measures drawing DCCI's appreciation included mandatory single-window service implementation, seven-day work permit issuance, ten-day investor visas, and the halving of withholding tax on foreign loan interest payments from 20% to 10%.

DCCI Senior Vice President Razeev H. Chowdhury, Vice President Md. Salem Sulaiman and other board members were present at the event.