JAGARAN CHAKMA

The proposed budget for FY2026-27 lays out an ambitious package of tax incentives, duty concessions and policy reforms aimed at attracting investment, diversifying industry and lowering the cost of doing business.

Analysts and business leaders, however, warn that the measures will matter only if they are implemented effectively, and the underlying factors suppressing private investment are addressed.

Presenting the budget in parliament yesterday, Finance Minister Amir Khosru Mahmud Chowdhury said revenue policies would support industrialisation, employment generation and foreign investment while maintaining fiscal discipline.

The measures come against the backdrop of a slowing economy marked by weak private investment, high inflation, uncertain demand and tight credit. Private-sector credit growth fell to 4.72 percent in March, the lowest since Bangladesh Bank began keeping records in 2003, down from 6.03 percent in February.

WHAT THE BUDGET PROPOSES

Among the headline measures are the establishment of Free Trade Zones with duty-free import facilities for export-oriented manufacturers and the removal of the 49 percent cap on foreign ownership in private off-docks and inland container depots, a move aimed at attracting foreign capital into logistics infrastructure.

The finance minister said the government would amend the Customs Act to create a legal framework for Free Trade Zones, allowing duty-free imports for export-oriented industries.

The plan comes as the government prepares to establish the first such zone in Anwara, Chattogram.

New frameworks for air cargo stations and private port operators are also planned, Khosru said.

Corporate tax rates remain unchanged at 22.5 percent for listed companies and 27.5 percent for non-listed firms. However, companies routing all income through banking channels will qualify for reduced rates of 20 percent and 25 percent respectively, an incentive designed to encourage greater financial transparency.

Khosru said maintaining a stable corporate tax structure would provide greater certainty for investors.

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