DCCI calls for reducing tax burden in FY26 Bangladesh budget

At a pre-budget discussion in Dhaka, DCCI president Taskeen Ahmed stressed on the need for expanding the tax net and streamlining tax management to boost revenue collection.

For the next budget, he recommended a fully-automated corporate tax return system, abolishing advance tax for manufacturers at the import stage and reducing the same for commercial importers.

He also proposed imposing at least 1-per cent value-added tax (VAT) on entrepreneurs of the informal sector and a single-digit VAT for other traders.

“Considering the prevailing domestic 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 [cottage, micro, small and medium enterprises] loans and formulate equity-based share policy in the capital market for long-term financing,” the DCCI chief was quoted as saying by domestic media reports.

Taskeen demanded competitive fuel pricing in the industrial sector and uninterrupted gas and power supply for the development of infrastructure and logistics management to boost industrialisation.

Chairman of the National Board of Revenue (NBR) Mohammad Abdur Rahman Khan said the existing tax, VAT and customs rates will be rationalised along with the automation of the entire revenue management system.

There is low probability of reducing individual and corporate tax rates in the upcoming budget, the NBR chairman said.

However, he hoped that the existing disparity in the tax rates at different levels will be resolved.

Fibre2Fashion News Desk (DS)