Bangladesh will introduce sweeping business deregulation in the fiscal 2026-27 budget, including seven-day fast-track licensing, extended permit validity, automated tax administration, and a unified digital platform to reduce costs and attract investment.
Bangladesh’s government plans to roll out sweeping deregulation reforms aimed at reducing business friction, streamlining licensing requirements, and overhauling tax administration.
Finance Minister Amir Khosru Mahmud Choudhury will dedicate a full chapter of the fiscal 2026-27 budget speech to “Ease of Doing Business through Deregulation,” with measures designed to lower operational barriers for both domestic and foreign enterprises.
Seven-day licensing and extended permits
Businesses applying for new licences or expansion approvals will receive provisional permission within seven days of submitting their application. If authorities fail to issue final approval by the deadline, the licence will be automatically granted—a significant departure from current practice. Most business permits and licences will also have their validity extended from one year to five years, eliminating frequent renewals.
Under the reforms, investors will apply for all required permissions through a single entry point rather than navigating multiple government agencies separately.
Modernised tax system with digital tools and incentives
The National Board of Revenue (NBR) will undergo complete automation, with new features including online corporate tax return filing, year-round submission, and a mobile application for e-returns.
Early filers will receive tax incentives, while late submissions will trigger higher tax rates. Refunds will be processed directly into taxpayers’ bank accounts. The audit threshold for non-corporate entities will rise from BDT 5 crore to BDT 10 crore turnover, easing the burden on small and medium enterprises. Late voluntary returns can be filed after the tax year upon payment of BDT 5,000 or 10% of tax owed.
The budget will allow an initial capital allowance of up to four times the taxable business income during spot assessments to encourage investment formalisation. Accrual-based interest expense deductions and increased allowances for perquisites, entertainment expenses, free samples, and promotional expenditures will be permitted.
The requirement for listed banks, insurance, leasing, and finance companies to distribute 30% of post-tax profits as dividends may be withdrawn, allowing them to retain earnings for capital strengthening and expansion.
Unified digital platform and investment gateway
A “Digital Application Platform” called “Banglabiz” will serve as a one-stop service system for all licence, certificate, approval, and renewal applications conducted entirely online.
The National Single Window will automate tax residency certificates and integrate the ASYCUDA World customs system with tax returns, streamlining data sharing and reducing evasion.
