POST-BUDGET DISCUSSION: “REFLECTION, RESPONSE AND THE ROAD AHEAD: NATIONAL BUDGET FY 2025–26”

• 03 Jun 2025
• 3:30 pm
• Sheraton Banani

The American Chamber of Commerce in Bangladesh (AmCham) hosted

its Post-Budget Panel Discussion titled “Reflection, Response and the Road Ahead: National Budget FY 2025–26” on June 3, 2025, at 3:30 p.m. at the Sheraton Dhaka, Banani.

The event began with a keynote presentation by Dr. M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, who provided a comprehensive overview of the proposed National Budget for FY 2025–26.

The high-profile panel discussion featured distinguished speakers who analyzed key aspects of the budget and offered policy reflections. The panel included: Mr. Syed Ershad Ahmed, President, AmCham Bangladesh; Dr. Fahmida Khatun, Executive Director, Centre for Policy Dialogue (CPD); Dr. Zahid Hussain, Former Lead Economist, World Bank Dhaka Office; Dr. M. Masrur Reaz, Chairman & CEO, Policy Exchange Bangladesh and Mr. Mirza Mohammad Mamun Sadat, First Secretary (Tax Policy), National Board of Revenue (NBR).

The discussion was moderated by Mr. Md Moinul Huq, Executive Committee Member of AmCham Bangladesh and Citi Country Officer, Citibank N.A., Bangladesh. The AmCham Post-Budget Discussion was supported by Philip Morris Bangladesh Ltd. AmCham Bangladesh expressed that the National Budget FY 2025–26 presented both opportunities and challenges, particularly in terms of macroeconomic stability, private sector growth, and trade facilitation. The Chamber emphasized the need for transparent and predictable fiscal policies, improved public expenditure management, and targeted support for sectors such as export diversification, digital innovation, and employment generation.

In his keynote, Dr. M Masrur Reaz, Chairman of Policy Exchange Bangladesh, outlined key tax and duty reliefs in the budget, including exemptions for cold storage machinery and LNG imports, reduced import duties on essential software tools, and a 2.5% corporate tax cut for publicly listed companies until FY28. Source taxes have been reduced for stock exchange members, captive power producers, and cargo transport, while land and flat registration fees have also been lowered. On the other hand, challenges include increased taxes on MS products and cotton yarn, higher VAT on construction services, online sales commissions, and man-made fiber yarn, and a new 1.5% source tax on freight forwarders’ gross bills. Despite some relief, the 4% source tax on captive power remains a concern.

Dr. Anisuzzaman Chowdhury, Special Assistant to Honorable Chief Advisor, Ministry of Finance, graced the event as the Chief Guest. His presence added significant value to the discussion, as he shared insightful perspectives on the fiscal direction of the government and emphasized the importance of maintaining economic stability, promoting private sector growth, and addressing implementation challenges in the national budget for FY 2025–26.

For the panel discussion segment, Mr. Md Moinul Huq opened the session by focusing on critical aspects of the economy and the proposed budget. Mr. Zahid Hussain, Former Lead Economist at the World Bank, called the budget inflation neutral but warned of liquidity challenges. He stressed that stronger action against corruption is essential for fiscal sustainability. Dr. Fahmida Khatun, Executive Director, CPD, noted that Bangladesh lags in education investment, allocating less than 2% of GDP—far below most LDC peers—weakening long-term development prospects. Mr. Mirza Mohammad Mamun Sadat, First Secretary (Tax Policy), NBR, highlighted tax benefits for listed companies and new rules mandating banking channels for large transactions, aiming to boost formalization and transparency. Dr. M Masrur Reaz, Chairman, Policy Exchange, criticized increased taxes on online transactions and unlisted companies, warning of pressure on startups and SMEs. He said, “Bangladesh’s corporate tax burden is already high; raising it further weakens competitiveness.”

There was concern that the budget offers limited focus on LDC graduation and trade reform, despite their importance in ensuring a smooth transition. Tax hikes on imports such as sugar and beverages may discourage investment, particularly in sectors where Bangladesh lags behind regional peers. Issues were also noted around mismatches in HS codes affecting SMEs, along with the need for stronger policy coordination and greater investment in education and healthcare. Emphasis was placed on pursuing unified, transparent reforms and targeted strategies to support sustainable growth in the post-LDC era. A good number of AmCham members including the Executive Committee Members, foreign dignitaries, business leaders, media representatives and other distinguished guests attended.