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Even so, he commented that some budget measures could end up fuelling inflation.
The increase in advance tax is meant to recover revenue lost through value-added tax (VAT) evasion, but it may push up consumer prices and add to inflationary pressure, he said.
Sattar said meeting the target of 5.5 percent gross domestic product (GDP) growth in the next fiscal year will depend on how well the annual development programme is implemented and whether private investment can be encouraged.
He sounded critical of the budget for being weak on redistributive measures, with allocations for health, education and social protection staying flat. This, too, Sattar called a missed opportunity.
The economist said Bangladesh must increase competitiveness and productivity to support economic diversification and create more jobs. Tariff cuts need to be matched by stronger efforts to raise income tax and VAT revenue.
He highlighted two major hurdles that lie ahead – Bangladesh’s graduation from the least developed country club next November and potential higher tariffs on Bangladeshi goods entering the US market.
On items sourced from Bangladesh, the Trump administration announced a 37 percent “reciprocal tariff” in April this year, though this has been paused until July. Sattar said both challenges require bold reforms and urgent policy responses.
The event was jointly organised by the Metropolitan Chamber of Commerce and Industry (MCCI) and PRI at the MCCI office in the Gulshan area of the capital.
Speaking at the programme, MCCI President Kamran T Rahman said the Finance Ordinance 2025 has accepted several proposals of the chamber.
These include doubling the perquisite ceiling for annual fringe benefits for serviceholders, such as accommodation and car facilities, to Tk 20 lakh per employee.
Besides, shifting tax deducted at source return filing from monthly to quarterly, and extending the VAT adjustment period from three to six tax periods were among MCCI’s recommendations.
“However, we remain deeply concerned about certain aspects of the budget. Most notably, the proposed increase in turnover tax from 0.6 percent to as much as 1 percent across almost all sectors,” said Rahman.
Anisuzzaman Chowdhury, special assistant to the chief adviser, acknowledged that the country has a very low revenue base and one of the lowest tax-to-GDP ratios in the region.
“We simply cannot do everything because of this,” he said.
“Our fundamental problem is that we do not feel an obligation to pay taxes. It is not a perfect budget, but it is business-friendly. We have taken steps in the right direction.”
Chowdhury identified policy coordination, coherence, and integration as key challenges facing Bangladesh.
Bangladesh sees
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Moazzem said in determining the price of rawhides, there should be separate rates for salted and unsalted hides.
The price for salted rawhides should be set high enough to encourage proper salting. Price variations should also reflect some basic quality standards, he added.
Shaheen Ahamed, chairman of the BTA, said if the STIE’s central effluent treatment plant (CETP) can be made fully functional, it would be possible to increase exports by Tk 50,000 to Tk 60,000 crore within the next four to five years.
He said this would also create opportunities for foreign investment in the country’s leather sector.
Md Shakawat Ullah, senior vice-chairman of the BTA, also urged for the CETP to be made fully functional. “After that, we will see how to increase the price of leather,” he said.
Mahbubur Rahman, secretary to the Ministry of Commerce, said next year, instead of distributing free salt for preserving rawhides, the possibility of offering incentives for selling salted rawhides would be considered.
He believes that this would encourage faster and better preservation of rawhides.