Paper importers and traders have urged the government to reduce customs duty on imported paper and paperboard to 5 per cent and simplify tax procedures ahead of the FY2026-27 budget, warning that the existing structure is increasing costs for publishing, printing, packaging and pharmaceutical industries.
In separate letters to National Board of Revenue (NBR) Chairman and Finance and Planning Minister Amir Khosru Mahmud Chowdhury, sector leaders described the current customs duty, advance income tax, advance tax and value-added tax regime as unrealistic, complex and harmful to legitimate businesses.
Bangladesh Paper Merchant’s Association President Abdul Matin Jewel, in a letter to the NBR chairman, proposed several reforms aimed at making the tax system more business-friendly and improving revenue collection.
The association said businesses appealing against income tax audit objections currently must deposit 10 per cent of the disputed amount to file appeals before the Appellate Tribunal and 25 per cent for appeals in the High Court.
According to the traders, the requirement creates heavy financial pressure, discourages businesses from seeking legal remedies and complicates tax dispute settlement. The association proposed reducing the mandatory deposit rate to 5 per cent in both cases.
The letter also sought reduction of customs duty on imported paper and paperboard under HS Code 4810, widely used in publishing, printing and pharmaceutical industries.
Traders said such products are not produced locally in sufficient quantity or quality, forcing industries to remain heavily dependent on imports.
The association argued that reducing customs duty to 5 per cent, similar to rates enjoyed by the plastic sector, would encourage legal imports, improve compliance and reduce tax evasion.
Business leaders warned that the existing tax structure is increasing costs throughout the supply chain, ultimately affecting prices of books, newspapers, educational materials, packaging products and medicines.
A separate proposal was submitted by Bangladesh Paper Importers Association Director and Chattogram Paper and Cellophane Traders Group General Secretary Mohammad Belal.
In his letter to the finance minister, Belal said the current duty and tax structure had become a major obstacle for genuine importers, forcing many traders to reduce imports or scale down operations because of rising costs and administrative complications.
He argued that lower customs duty would encourage importers to use legal channels instead of under-invoicing and other irregular practices, ultimately increasing government revenue through higher formal imports.
“Currently, traders have to deposit 25 per cent income tax or 10 per cent value-added tax in advance to file appeals. This creates unnecessary financial pressure on genuine businesses,” Belal told TIMES of Bangladesh.
He said reducing the advance deposit rate to 5 per cent would ease harassment, increase transparency and simplify the appeal process for traders.
Belal also alleged that excessive tax demands and complicated value-added tax procedures were creating opportunities for corruption and administrative harassment, while simplifying the system would help restore market stability and improve competitiveness in industries dependent on imported paper.
Industry insiders said paper should be treated as a strategic industrial support product rather than merely a revenue-generating item, as Bangladesh’s education, publishing and pharmaceutical sectors remain heavily dependent on imported quality paper and paperboard.
