Policy Exchange Bangladesh recently hosted a high-level roundtable titled 'Accelerating Private Sector Growth Through Effective Budget Planning: Priorities for upcoming Budget for 2025-26'.
The event brought together key stakeholders from government, private industry, chambers bodies and think tanks to discuss the nation's fiscal priorities and development goals.
The roundtable moderated by Policy Exchange Chairmen and CEO Dr. M Masrur Reaz, brought together key stakeholders from NBR, BIDA, FMCG, Tobacco sector, RMG, Agriculture, Telecom, Foreign Chamber, and Economists and Tax Analysts.
The discussion addressed budget as a crucial opportunity to enhance domestic resource mobilization, realign fiscal priorities, and ensure efficient resource allocation for inclusive and sustainable growth in top contributing sectors.
The dialogue underscored the importance of strategic planning and effective implementation to unlock broader development potentials for the country.
Mohammad Belal Hossain Chowdhury of NBR set the tone of discussion by emphasizing NBR's commitment to reform. "We are working on massive automation to reduce harassment and improve compliance.
"We need collaboration-businesses must share actionable intelligence on illicit trade," he stated, highlighting the need for a cooperative approach to tackling fiscal challenges.
Farid Uddin, member of NBR Reform Committee and a former member of NBR , stressed the structural challenges facing the tax system. He said "80 percent of our taxes are indirect-a system unfit for an aspiring developing economy.
"Radical reforms, not piecemeal changes, are needed, he further said adding. political commitment is essential to overhaul distortions like high TDS and multifold VAT rates," calling for implementing comprehensive reforms to create a more equitable tax system.
Md. Ariful Hoque, Director General, Bangladesh Investment Development Authority (BIDA) highlighted the interconnection of revenue and investment. "Revenue and investment are two sides of the same coin.
We're pushing for automation and policy consistency, but bureaucratic mindset shifts are critical. Reforms must be holistic-land, energy, and tax policies must align," he noted, emphasizing the need for a cohesive approach to policy reform.
Mohammed Zahidullah, Chief Sustainability Officer, DBL Group said "The garment industry faces existential threats from energy shortages and carbon taxes. Without renewable energy partnerships and tax incentives for green factories, orders will migrate to Vietnam or India," he said.