Staff Correspondent: Chairman of the National Board of Revenue (NBR), Md Abdur Rahman Khan, said Sunday, there is less possibility of reducing individual and corporate tax rates in the upcoming budget for the fiscal year 2025-26.
"Our individual and corporate tax rates are quite low in the region comparatively, so there is less possibility of reducing these rates further in the upcoming budget," he said.
The NBR chief said this while speaking at a live discussion session titled "Pre-Budget Discussion 2025-26: Private Sector Perspective" at a hotel in the city. Dhaka Chamber of Commerce and Industry (DCCI), Samakal and Channel 24 jointly organised the discussion.
Abdur Rahman Khan said the existing tax, VAT and customs rates will be rationalised along with the automation of the entire revenue management system. The "National Single Window" has been started recently after a long closure, and the businessmen are getting its facilities already, he said.
He also said automation will be implemented at every level of tax management in the coming days, and the bond automation project will be launched soon.
The NBR chief hoped that the existing disparity in the tax rates at different levels would be resolved in the next budget.
To continue the economic growth momentum, DCCI President Taskeen Ahmed said it is necessary to keep increasing the revenue collection, and for this, enhancing the tax net as well as easing the overall tax management system across the board is a must.
For the upcoming national budget, he recommended the introduction of a fully automated corporate tax return system, abolition of advance tax for manufacturers at the import stage and the reduction of the same for commercial importers.
He also proposed to impose at least one % VAT on the entrepreneurs of the informal sector and a single-digit VAT for the other traders. He also said, considering the prevailing local and geo-political situation, it is necessary to reduce the interest rate on loans, extend the loan
classification period by another six months and provide a moratorium facility for at least six months for all industries, establish good governance in the financial sector to reduce non-performing loans, simplify procedures of CMSME loans and formulate equity-based share policy in the capital market for long-term financing.
Taskeen Ahmed also demanded competitive fuel pricing in the industrial sector, as well as ensuring an uninterrupted gas and power supply for the development of infrastructure and logistics management for strengthening Industrialisation in Bangladesh.
Besides, he opined that special facilities should be provided in the upcoming budget in potential sectors like agriculture, leather, pharmaceuticals, automobile, light engineering and information technology to increase export earnings.
Regarding recent imposition of tariff on Bangladesh's export to the United States of America (USA) by its government, President of International Chamber of Commerce, Bangladesh and former President of DCCI Mahbubur Rahman said the government should take initiative to negotiate with the US government in this regard and he also suggested to form a Task Force with representatives of the private sector, including the DCCI.
He further stressed on full automation of customs and revenue structure to bring transparency in the revenue management sector.
Later, he added that the budget is formulated not only for a year, but also has long-term guidance for the business and economy as well. He further urged to facilitate the local investors in the next budget, so that they can contribute more to our economy.
Former Commerce Minister Amir Khasru Mahmud Chowdhury said the economy will not expand without increasing investment and business growth, but necessary reforms are needed to ensure supportive policies.
"We have a mismatch in our long-term financing method, due to which the desired level of business progress is not being seen, because it is not sustainable to collect deposits on a short-term basis and give loans in the long term," he added.
Effective and supportive tax policies have to be formulated to ensure investment expansion, where we are lagging far behind, he opined.
Former FBCCI President Abdul Awal Mintoo urged for a business-friendly budget in the context of the current geo-political situation. He also said that a contractionary monetary policy for a longer time is not ideal for the overall development of the private sector.
He underscored the importance of coordination among the revenue and related policies for the improvement of the business climate.
To increase the tax-GDP ratio, he stressed bringing the non-tax payers on board, especially those who have a TIN but are not paying any taxes. Former FBCCI President Mir Nasir Hossain said that due to the budget deficit and contractionary monetary policy, credit flow to the private sector has not reached the desired level.
He demanded an inclusive, business-friendly, investment-friendly, timely and pragmatic budget for the next fiscal.
He also called for more focus on reducing government expenditure in the form of austerity to meet the revenue deficit.
The former FBCCI president said that if harassment is stopped, more people will be encouraged to pay taxes.