TBT DESK: The National Board of Revenue is reportedly considering raising the excise duty exemption limit, currently capped at Taka 3 lakh, in an effort to reduce the cost of doing business and provide relief to taxpayers.

NBR Chairman Md Abdur Rahman Khan indicated the move on Wednesday during a pre-budget meeting with representatives of the Association of Bankers Bangladesh (ABB), Bangladesh Association of Banks (BAB), DSE Brokers Association (DBA), Central Depository Bangladesh Limited (CDBL), Bangladesh Insurance Association (BIA), Bangladesh Merchant Bankers Association (BMBA), and the Dhaka and Chittagong Stock Exchanges.

“We aim to build on prior reforms that raised the exemption threshold to assist small depositors and businesses,” he said. The Chairman noted that the current excise duty is widely considered an undesirable element of the revenue system and expressed a long-term vision to eventually abolish it as the economy strengthens and revenue streams diversify.

During the meeting, ABB Chairman Mashrur Arefin submitted a strategic roadmap of budget recommendations for 2026-2027. He proposed a broad recalibration of corporate tax rates, removal of barriers to Foreign Direct Investment (FDI), and urgent relief for CMSME businesses and banking professionals facing inflationary pressures.

Among his suggestions, the ABB chief recommended lowering corporate tax for listed banks from 37.5% to below 30%, aligning Bangladesh more closely with regional peers, where average rates are around 20%. He also advocated a 100% tax exemption for all Corporate Social Responsibility (CSR) spending, arguing that CSR activities directly support government objectives in healthcare, education, and social welfare and should be incentivised rather than penalised.

If implemented, these measures could ease operational costs for banks and businesses, foster investment, and strengthen Bangladesh’s position as a competitive investment destination.