The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has called for sweeping tax and policy reforms, focusing on reducing corporate tax rates, rationalising tax provisions, and simplifying customs procedures to improve the overall business climate.
The chamber made the call at a pre-budget discussion held at the National Board of Revenue (NBR) conference room on Monday.
FICCI proposed reducing corporate income tax by reintroducing cashless conditions for unlisted companies and including “cash deposit to bank” within the definition of bank transfers.
It also recommended a phased transition to a fully cashless economy over the next five years, saying this would enhance transparency, improve documentation, and reduce disputes, ultimately lowering compliance costs and the effective tax rate.
The chamber also urged a gradual reduction of withholding and minimum taxes, noting that these are often imposed irrespective of profitability. It suggested phasing out certain triggers to better align taxation with actual income.
On personal taxation, FICCI called for a review of the income tax structure, considering inflation, investment, and employment. It recommended raising the tax-free threshold and restructuring lower slabs to ease the burden on salaried and middle-income groups, which could support consumption and economic activity.
In customs, the chamber stressed strict adherence to transaction value under the Valuation Rules 2000 and greater use of provisional assessment with release against bank guarantees to reduce clearance delays. It also called for simplifying the Authorised Economic Operator (AEO) programme and introducing clear benefits to encourage wider participation.
FICCI further said tax expenditure policies should be aligned with national priorities, recommending sunset clauses for exemptions alongside clear performance criteria and regular reviews.
FICCI president Rupali Haque Chowdhury highlighted the need for a predictable and collaborative policy environment to sustain investor confidence amid global and domestic challenges.
She said consistent, transparent, and forward-looking reforms—particularly in taxation and regulation—are essential to attract and retain long-term investment.
She also stressed stronger public-private collaboration, noting that an inclusive reform process is key to ensuring policy effectiveness. Despite current challenges, she expressed cautious optimism about Bangladesh’s economic outlook with appropriate policy support.
NBR chairman Md Abdur Rahman Khan said the focus remains on improving operational efficiency rather than cutting tax rates immediately, given existing fiscal pressures.
He acknowledged that businesses face a high tax burden but attributed much of it to systemic inefficiencies, underscoring the need for greater use of technology.
He added that the corporate tax system will be fully automated from next year, which is expected to ease interactions with tax offices and improve overall efficiency.
