The Bangladesh Chamber of Industries has proposed that the National Board of Revenue (NBR) cut corporate tax by 2.5 percentage points to 20 percent for the listed companies and 25 percent for the privately owned companies in the next fiscal’s national budget amid local and global economic headwinds.
In its budget proposals placed before the tax regulator on Thursday, the trade body also advised to raise individual tax-free income bar to Tk5 lakh in 2025-26 fiscal year in consideration of the mounting inflation. Additionally, it sought a cut in tax deducted at source (TDS) for the export-oriented industries to 0.5 percent from existing 1 percent.
“A favourable tax structure is very important for the industrial entrepreneurs as well as the country’s economic growth and job creation. We hope that the NBR under the interim government will facilitate industries by implementing an industry-friendly tax structure,” BCI President Anwar-ul Alam Chowdhury (Parvez) said in a written speech.
The BCI hailed an NBR move to separate its tax policy from the tax administration to ensure transparency, accountability and bring momentum to the tax collection process.
They expressed concern over the government decision to graduate from the LDCs group in 2026, saying that Bangladesh’s export sector will bear the brunt of that move as the LDCs exit will put an end to preferential duty facilities enjoyed by the Bangladeshi exporters in global market.
“This calls for a special attention of the NBR for the export sector to help flourish local industries and protect the service sector,” Parvez told the NBR chairman.
To collect more taxes by the NBR, the trade body demanded that the regulator simplify tax system, cut rates, expand the scope of income tax and VAT and make return submission mandatory.
As a tool for protecting local industries, Advanced Income Tax (AIT) and VAT must be imposed on the imported services and at the same time all the exportable items should get rid of all types of indirect taxes to enhance production as well as exports, according to the BCI.
In addition, a jointly managed bonded warehouse facility should be introduced for the women entrepreneurs and rural and micro export industries. They should also be facilitated with marketing facilities to make them able to compete with the e-commerce.
The chamber also called for removing complexities in HS code related problems, which sometimes result in a 200 percent fine for misdeclaration.
In the context of LDC graduation, cash incentives on exports should be replaced with some other means of fiscal benefits for the exporters, the BCI said.
It also believes that slashing turnover tax for the SMEs will encourage them to come under the tax umbrella.