- FICCI gave a mixed reaction to the national budget for FY2025-26.
- The budget eases burdens on specific sectors and promotes a predictable tax system.
- Reduction of source tax for construction companies and essential goods is seen as positive.
- No tax on dividends from joint ventures prevents double taxation.
- Double Taxation Avoidance Agreement takes precedence over the Income Tax Act 2023.
- Simplification of advance tax for commercial importers noted, with potential cost concerns.
- Rebate and refund period extended from four to six months.
- Digitisation of sales and purchase records through ERP systems eliminates hard copies.
- Amendments to the Customs Act 2023 welcomed for modernisation and tariff restructuring.
- Tk50.40 billion allocated for the Public-Private Partnership fund in FY26 to boost foreign investment.
- Concerns raised over additional 7.5 per cent corporate tax on certain publicly traded companies.
- Withdrawal of reduced tax rate for banking transactions seen as counter-productive.
- Apprehension over tax changes impacting middle-income earners.
- Increase in VAT on online sales from 5.0 per cent to 15 per cent flagged as a challenge for the online business industry.
Source: thefinancialexpress.com.bd
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
