Finance Adviser Dr. Salehuddin Ahmed emphasised that improving the efficiency of the National Board of Revenue (NBR) is critical for fostering business growth in Bangladesh.
He also highlighted the need to boost the competitiveness of local businesses in light of the country’s upcoming graduation from Least Developed Country (LDC) status, urging adherence to labor and environmental compliance.
Dr. Ahmed made these remarks while delivering the keynote speech as the chief guest at a seminar titled ‘Reforms in Customs, Income Tax, and VAT Management to Address LDC Graduation Challenges,’ held at the NEC Conference Room in the capital.
The event was organised by the Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD).
Commerce Adviser Sk. Bashir Uddin, NBR Chairman Md. Abdur Rahman Khan, and ERD Secretary Md. Shahriar Kader Siddiky also participated in the event as special guests. The seminar aimed to discuss key reforms required for the country’s smooth transition out of LDC status.
Dr. Ahmed further stressed the importance of collaboration between the government and the private sector in addressing LDC graduation challenges, emphasizing the effective implementation of the recently finalised Smooth Transition Strategy (STS).
Commerce Adviser Sk. Bashir Uddin underscored the need for improving local business efficiency to cope with the challenges of LDC graduation.
He also advocated for bringing small and medium enterprises under the VAT system and introducing a uniform tax rate.
NBR Chairman Md. Abdur Rahman Khan discussed the importance of reducing tax expenditures and shared updates about the National Single Window (NSW), which is set to become fully operational by next March. He also highlighted that the entire tax system will soon be automated.
ERD Secretary Md. Shahriar Kader Siddiky reiterated the government’s commitment to the timely and effective implementation of the STS and mentioned that further consultations with stakeholders will take place to ensure the strategy’s success.
Dr. Mostafa Abid Khan, former Member of the Bangladesh Trade and Tariff Commission and Component Manager of SSGP, presented the keynote. He discussed the World Bank’s World Development Indicators 2023, which revealed that the cost of imports and exports in Bangladesh is significantly higher compared to countries like India, Malaysia, Vietnam, and Singapore. Dr. Khan also stressed that reducing customs clearance time could boost Bangladesh’s exports by 7.4% and improve domestic product competitiveness by 5%.
The seminar brought together government officials, private sector representatives, and experts to outline the necessary steps to address the challenges of LDC graduation and the importance of comprehensive reforms in customs, VAT, and income tax management.
Notably, Bangladesh is scheduled to graduate from LDC status on November 24, 2026. This transition will result in the gradual loss of access to key International Support Measures (ISMs), such as duty-free and quota-free market access, and export subsidies. Consequently, significant reforms are needed to enhance trade competitiveness and revenue mobilization, as outlined in the STS.
