Dhaka, Mar 21 (V7N) -Finance Adviser Salehuddin Ahmed assured that the upcoming national budget will be business-friendly, incorporating a favorable tax policy to boost investment, GDP growth, and employment generation.
“We will present a business-friendly budget with a favorable tax policy to enhance overall investment, GDP, and employment. The business community has provided us with a set of practical suggestions,” he told reporters after a pre-budget meeting with business leaders at the Finance Division Conference Room at the Bangladesh Secretariat on Thursday.
Salehuddin said the business community has urged the government to lower tax rates across various sectors and streamline tax payments through online platforms.
Regarding customs procedures, he noted that the government would consider the business community’s suggestions concerning the Harmonized System (HS) code.
Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury said: "The discussion mainly focused on National Board of Revenue (NBR)-related issues, particularly income tax."
“The finance adviser appeared positive, emphasizing that the NBR should strengthen efforts in revenue mobilization and tax collection. However, our primary concern remains enhancing industrial competitiveness,” he said.
Anwar added that the finance adviser requested written proposals regarding banking sector issues and fiscal support.
Leaders from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA) also placed their suggestions during the meeting.
BCI President Anwar-Ul-Alam Chowdhury stressed the importance of aligning tax assessment with international practices, to which the finance adviser agreed.
BKMEA President Mohammad Hatem expressed optimism that the meeting would lead to positive changes in the taxation system, as assured by the NBR chairman.
“We requested a revision of the provision requiring a 1% Advance Income Tax. Tax should be paid on profit, but currently, tax is deducted at source on total sales,” Hatem said.
While the business leaders did not propose changes to corporate tax rates, they advocated for reducing VAT in specific sectors. They also recommended standardizing the HS code to six digits for efficient customs clearance under the bond management system.
Hatem noted that the business community appreciated improvements in services at Chittagong Customs House. He urged the government to simplify VAT regulations and HS code complexities.
Additionally, the BKMEA requested direct cash incentives on export proceeds to avoid procedural complications.
In a formal proposal, the BKMEA suggested maintaining the source tax for the Ready-Made Garment (RMG) sector at 0.5% for the next five fiscal years (until FY30), treating it as the final tax realization.
They also demanded a business-friendly taxation policy, necessary reforms, and full VAT exemption on products and services related to 100% export-oriented RMG industries.
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