Finance Adviser Saleh Uddin Ahmed has announced that Bangladesh's corporate tax rate is under review and will be "revisited" in the upcoming national budget to ensure a more balanced and competitive economic framework.
Speaking to the media after a pre-budget meeting with leading economists at the state guesthouse, Padma, in Dhaka on Sunday (16 March), he highlighted the government's commitment to reducing economic inequality by shifting the focus towards direct taxation.
"Since assuming office, I have revoked tax exemptions for various individuals and sectors. To further minimise tax expenditure, such exemptions will be curtailed even further in the upcoming budget," he stated.
He underscored that indirect taxes burden both the affluent and the underprivileged alike, making direct tax collection a priority.
At the meeting, Rehman Sobhan, chairman of the Centre for Policy Dialogue, proposed new legislation to ensure individuals and businesses are held accountable if they evade taxes despite having taxable income.
In response to queries on the matter, Saleh Uddin said, "I am not making any commitments yet, as the business community frequently expresses concerns and seeks various advantages."
Rehman Sobhan also called for greater transparency in the financial operations of both the government and NGOs, urging for stronger monitoring mechanisms.
He recommended implementing performance-based budgeting, where each fiscal plan includes an assessment of past promises, their fulfilment, and explanations for any unfulfilled commitments.
Addressing the ongoing issue of pension irregularities, the finance adviser disclosed that while 1.2 crore elderly citizens currently receive pensions, 20 lakh of them have been deemed ineligible.
The interim government intends to replace these recipients with 20 lakh new, eligible beneficiaries.
On structural reforms, he outlined two major changes in the forthcoming budget: The separation of revenue collection from policy-making and measures to expedite project implementation, which has long been plagued by delays.
He stressed the need to complete projects within the first or second quarter of the financial year while ensuring effective execution in the latter half.
He also indicated that fiscal strategies would be introduced to address inefficiencies in project timelines, emphasising a greater focus on employment-generating local projects and skill development initiatives.
"Factory automation is leading to an increase in foreign hires, but priority should be given to local workers, particularly in sectors such as manpower export," he noted.
Meanwhile, Professor MA Akash of Dhaka University's Department of Economics proposed imposing a wealth tax on individuals who own multiple properties, two cars, or have bank deposits exceeding Tk1 crore.
He also called for the allocation of special funds for local gas exploration and greater emphasis on small and medium enterprises (SMEs).
On inflation control, the adviser acknowledged expert recommendations for a combination of monetary policy and buffer stocks of essential goods to stabilise prices.
He affirmed that the upcoming budget would be pragmatic rather than overly ambitious, with a targeted inflation rate of 6.5% for FY26, down from the current 8%.
Finance Secretary Md Khairuzzaman Majumdar assured that the forthcoming budget would be significantly more transparent than in previous years.
"Earlier administrations provided limited guidance, but the current government has introduced clearer directives, making the process more accountable," he said.
The budget is expected to introduce further fiscal discipline while ensuring greater efficiency in tax collection, project execution, and social welfare initiatives.
