Finance Adviser Dr. Salehuddin Ahmed on Sunday hinted that corporate tax rates may be revised downwards in the upcoming budget for the 2025-26 fiscal, with an acknowledgement that current rates are 'relatively high.
Speaking to reporters after a pre-budget meeting with leading economists at the State Guest House Padma on Sunday evening, Dr. Ahmed emphasized the need to focus on direct taxation over indirect taxation to reduce economic disparity, reports UNB.
“After assuming office, I revoked several SROs that provided tax exemptions to various sectors and individuals. In the next budget, such exemptions will be further curtailed to lower tax expenditures,” he said.
He also said that indirect taxes affect both the rich and poor equally, so the government's priority would be to enhance direct tax collection in a progressive tax policy.
Dr. Ahmed outlined two key initiatives he aims to implement before the current government’s term ends. “One of them is separating revenue collection from revenue policy, which is a significant task. We will initiate the process, and I hope the next government will carry it forward after amending the relevant laws.”
Addressing project implementation inefficiencies, he proposed a new system in which development projects would be planned within the first two quarters of a fiscal year and implemented in the latter two quarters.
The Finance Adviser noted that the economists at the meeting recommended a prudent monetary policy to control inflation, along with building buffer stocks of essential commodities and creating employment opportunities.
To boost job creation, some locally driven projects will be undertaken, while additional resources will be allocated for skills development in the budget. Economists also stressed the importance of optimizing resources and expenditures in primary education and ensuring that social safety net programs reach their intended beneficiaries.
Dr. Ahmed assured that the upcoming budget would not be overly ambitious and that efforts would be made to keep inflation at 6.5 percent in FY26 (2025-26 fiscal).
Dhaka University Professor Dr. MM Akash stated that the interim government should take steps that leave a lasting impact on future administrations.
Finance Division Secretary Dr. Md. Khairuzzaman Mozumder affirmed that the next budget would be highly transparent, incorporating necessary guidelines from experts.
Eminent 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, participated in the discussion.
Additionally, Chief Adviser’s Special Assistant Dr. Anisuzzaman Chowdhury and Financial Institutions Division Secretary Nazma Mubarek were present at the meeting.
Bd-pratidin English/ Afia
