The Metropolitan Chamber of Commerce and Industry (MCCI) has urged National Board of Revenue (NBR) to build a business‑friendly and supportive tax system.
The call came during a pre‑budget discussion on Saturday at the NBR headquarters in Agargaon, Dhaka, where the chamber placed several reform proposals.
MCCI said that amid global economic uncertainty, high inflation, low growth and stagnant private investment, Bangladesh’s industrial sector is under pressure.
Rising raw material import costs due to 12–14 percent interest rates and dollar shortages have hit SMEs particularly hard. The chamber stressed that the upcoming budget should be “supportive, not punitive.”
Highlighting structural weaknesses, MCCI pointed out that although more than 10 million taxpayers hold e‑TINs, fewer than half file returns regularly.
With nearly 90 percent of the economy still informal, raising the tax‑GDP ratio remains difficult. To expand the tax base, MCCI proposed a symbolic minimum tax of Tk100–1,000 annually and a mobile app‑based simplified filing system.
The chamber also said effective tax rates often reach 40–50 percent due to advance income tax (AIT), tax deducted at source (TDS) and other conditions. It recommended unconditional corporate tax cuts and a shift to income‑based taxation.
MCCI emphasised digital transformation of tax administration, proposing a unified taxpayer profile integrating income tax, VAT and customs, rational VAT rates, and automated input tax credit.
It called for simplifying the mandatory PSR system, warning that excessive taxes on high‑income earners could discourage compliance and spur capital flight.
For SMEs, MCCI suggested a separate supportive tax framework, lower turnover tax, expanded input tax credit, and rational VAT and duty on raw materials. These steps, it argued, would reduce production costs, boost competitiveness, and increase revenue in the long run.
The chamber added that clear separation between tax policy and administration would enhance transparency, accountability and predictability, improving the investment climate.
MCCI expressed hope that under the government’s leadership and NBR’s effective management, a modern, transparent and investment‑friendly tax regime will emerge to make the economy more dynamic.
