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DCCI urges full automation of revenue system to boost Tax-GDP ratio

The Dhaka Chamber of Commerce and Industry (DCCI) has called for full-scale automation of Bangladesh’s revenue framework in the upcoming FY2026–27 national budget, stressing that such a move is essential to increase the tax-to-GDP ratio and ensure a more efficient, transparent system.

The proposal was placed at a pre-budget discussion held on Wednesday at the conference centre of the National Board of Revenue (NBR), where DCCI submitted a set of 54 recommendations spanning income tax, value-added tax (VAT), and import duties.

Acting Secretary General AKM Asaduzzaman Patwari presented the proposals to NBR Chairman Md Abdur Rahman Khan.

At the core of DCCI’s recommendations is the introduction of end-to-end automation across the revenue system, including customs and VAT refund mechanisms, aimed at reducing inefficiencies, curbing delays, and improving compliance.

The chamber also proposed a series of tax reforms to ease the burden on businesses and individuals.

These include lowering the tax rate for non-listed companies to 25 percent from the existing 27.5 percent, increasing the tax-free income threshold for individuals to Tk 500,000, and reducing advance tax on commercial imports to 5 percent from 7.5 percent.

Highlighting the broader rationale behind the proposals, DCCI’s Customs and VAT Standing Committee Convener MBM Lutful Hadi said the recommendations focus on expanding the tax net, strengthening revenue mobilisation, and creating a more business-friendly environment.

He noted that reducing the cost of doing business would ultimately support investment, employment generation, and economic growth.

In addition, DCCI underscored the need for integrating data across government agencies through a central API system to enhance transparency and plug revenue leakages.

 It also recommended cutting source tax on interest income from company deposits to 10 percent from 20 percent and gradually phasing out the surcharge on net wealth.

To improve VAT administration, the chamber suggested removing the ceiling on VAT refunds, introducing a mobile app to boost compliance, and implementing full automation of VAT operations to accelerate business processes and increase indirect tax collection over time.

Responding to the proposals, NBR Chairman Md Abdur Rahman Khan said the revenue authority is likely to prioritise the removal of non-tariff barriers in the upcoming budget, rather than focusing solely on reducing customs duty rates.

He said this approach would help lower business costs and restore dynamism in the macroeconomy.

He also warned that stricter measures would be taken against tax evasion, adding that efforts to identify and bring non-compliant taxpayers under the tax net would be intensified. The NBR, he added, remains committed to expanding the VAT base in the next fiscal year.

Senior DCCI leaders, including Acting President Md Salim Solaiman and directors M Mosharraf Hossain, Engr. Mostafa Kamal, and Rashid Maimunur Islam, were present at the discussion.

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