Reform policies to boost Bangladesh's global competitiveness: BCI

22 Mar '25

2 min read

Reform policies to boost Bangladesh's global competitiveness: BCI

Pic: Adobe Stock

Insights

The Bangladesh Chamber of Industries, in its pre-budget submission to the National Board of Revenue, has called for urgent reforms to enhance global competitiveness as that would subsequently lead to sustainable growth.
BCI called for the simplification of the tax system to expand the income tax and VAT net and proposed reforms aimed at reducing operational costs and improving the tax system.

The Bangladesh Chamber of Industries (BCI), in its pre-budget submission to the National Board of Revenue (NBR), has called for urgent reforms to enhance global competitiveness as that would subsequently lead to sustainable growth.

The proposals highlighted the challenges of Bangladesh's upcoming graduation from a least developed country (LDC), along with issues like spiralling energy costs, inflation and slow infrastructure development.

While the LDC graduation will usher in significant economic progress, it also means the country will lose vital trade privileges, particularly the benefits of the Generalised System of Preferences for exports, said BCI president Anwar-ul Alam Chowdhury Parvez.

Small and medium enterprises (SMEs) are especially facing significant financial pressure because of these challenges, Parvez was cited as saying by domestic media reports.

BCI proposed several reforms aimed at reducing operational costs and improving the tax system to provide relief for businesses struggling with these challenges.

The BCI called for the simplification of the tax system to expand the income tax and value-added tax (VAT) net, with the goal of increasing tax compliance across all sectors.

It proposed making tax registration mandatory for both government and private sector organisations to ensure that transactions are properly tracked and reported.

To further reduce costs for businesses, the chamber suggested that government fees related to land acquisition, licensing and port services be aligned with administrative cost models rather than arbitrary fees.

This would bring Bangladesh's tax practices in line with World Trade Organization (WTO) guidelines, it said.

BCI also advocated for reforms in customs and tax laws, aiming to streamline processes at the production, import and export stages and improve the overall efficiency of the tax system.

It suggested implementing a zero VAT rate on energy supplies for industrial and export sectors to help reduce production costs.

Additionally, it proposed tax relief for SMEs, particularly in rural areas, and suggested the introduction of bonded warehouses and distribution systems to help these businesses compete in the e-commerce market.

Fibre2Fashion News Desk (DS)

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