Foreign Investors Urge Tax Base Expansion and Investment-Friendly Reforms

The Foreign Investors Chamber of Commerce and Industry (FICCI) has positively assessed the proposed national budget for the 2026-27 fiscal year, emphasizing the need for tax base expansion, reduced business costs, and investment-friendly reforms. FICCI President Rupali Haque Chowdhury highlighted the government's efforts to maintain economic stability amidst global and domestic challenges, stressing the importance of structural reforms in the tax system and policy continuity for attracting investment post-LDC graduation. The organization suggests bringing more potential taxpayers into the tax net, mandating income tax return proofs for licenses, and integrating tax and VAT verification systems. FICCI also pointed out that beyond tax incentives, resolving issues related to gas and other services in economic zones is crucial for attracting investment. The chamber identified inflation as the primary economic challenge and called for a clear government strategy to curb it, while welcoming incentives for green initiatives and solar power.

The recommendations from foreign investors highlight key areas for economic policy reform, focusing on improving the business environment to attract further investment and ensure sustainable growth.