Tax Reforms to Boost Investment
Finance Adviser Salehuddin Ahmed promised that the next national budget will be business-friendly and include a favorable tax policy to encourage investment, GDP development, and job creation.
He said “In order to increase overall investment, GDP, and employment, we will propose a business-friendly budget with a favorable tax policy. “We have received a set of useful recommendations from the business community. He told to reporters following a pre-budget discussion with business executives at the Bangladesh Secretariat’s Finance Division Conference Room.
Focus on Customs and HS Code Standardization
According to Salehuddin, the business community has pushed the government to simplify tax payments via internet channels and reduce tax rates in a number of industries.
To ensure easier customs clearance, the government is taking into account suggestions from the business community about the Harmonized System (HS) code. In order to improve the efficiency of bond management, business executives underlined the necessity of standardizing the six-digit HS code.
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Industry Leaders Call for Tax Adjustments
According to Anwar Ul Alam Chowdhury the president of the Bangladesh Chamber of Industries (BCI), the conversation mostly centered on matters pertaining to the National Board of Revenue (NBR), specifically income tax. He said that “The financial adviser seemed upbeat and emphasized that the NBR should step up its efforts to collect taxes and mobilize income. But improving industrial competitiveness continues to be our top priority.” He went on to say that the finance adviser had asked for detailed ideas on fiscal support and banking sector challenges.
VAT & Source Tax Adjustments for Exporters:
Positive Outlook for Business Growth
Leaders from BGMEA, BKMEA and BTMA presented their suggestions and emphasizing the need for business friendly tax policies. BCI President Anwar-Ul-Alam Chowdhury highlighted the importance of aligning tax assessment with international standards, while BKMEA President Mohammad Hatem expressed optimism about positive changes in the taxation system. Hatem urged a revision of the 1% Advance Income Tax, arguing that tax should be based on profit rather than total sales.
Business leaders advocated for reducing VAT, standardizing the HS code to six digits for efficient customs clearance, and simplifying VAT regulations. They also appreciated improved services at Chattogram Customs House and called for further reforms. Additionally, BKMEA proposed maintaining the 0.5% source tax for the RMG sector until FY30, treating it as final tax realization, while demanding direct cash incentives for export proceeds and 100% VAT exemption on export-oriented RMG industries to enhance competitiveness.
