Corporate Tax Rates to Be Reviewed in FY26 Budget

Finance Adviser Dr. Salehuddin Ahmed revealed today that the government plans to reassess corporate tax rates in the upcoming FY26 budget, citing that current rates are relatively high. He also emphasized the need to shift focus towards increasing direct taxes over indirect taxes to address income inequality in the country.

Speaking to reporters after a pre-budget meeting with prominent economists at the State Guest House Padma in Dhaka, Dr. Ahmed outlined several key goals for the next budget. “We will reduce tax exemptions further in the next budget to decrease tax expenditures. Indirect taxes impact both the rich and the poor equally, so we aim to focus more on direct taxes,” he said.

Dr. Ahmed also mentioned his intention to make a significant impact before the end of his term. “One of my key objectives is to separate revenue collection from revenue policy, a challenging task we will begin, hoping that the next government will continue and refine it,” he explained.

Addressing the issue of delays in project implementation, the Finance Adviser highlighted plans to streamline the process, ensuring that development projects are planned in the first two quarters of the fiscal year and begin implementation in the latter half.

The economists in the meeting recommended controlling inflation through prudent monetary policies, creating a buffer stock of essential goods, and focusing on job creation. Dr. Ahmed noted that local projects would be prioritized to generate employment, with an added focus on skills development in the budget.

The Finance Adviser also emphasized the need for better resource utilization in primary education and ensuring that social safety nets effectively reach their intended beneficiaries. He stated that the next budget for FY26 would be realistic, with a target to contain inflation at 6.5%.

Dhaka University’s Prof. Dr. MM Akash suggested that the interim government should focus on initiatives that leave a lasting impact for future administrations. Finance Division Secretary Dr. Md Khairuzzman Mozumder assured that the upcoming budget would be transparent, with necessary guidelines in place.

Prominent economists, including CPD Chairman Dr. Rehman Sobhan, PRI Chairman Dr. Zaidi Sattar, Dr. Mustafa K. Mujeri, Dr. Kazi Sahabuddin, CPD Distinguished Fellow Dr. Mustafizur Rahman, and CPD Executive Director Dr. Fahmida Khatun, attended the meeting, among others. Chief Adviser’s Special Assistant Dr. Anisuzzaman Chowdhury and Financial Institutions Division Secretary Nazma Mubarek were also present.