National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has criticised bar and hotel owners over alleged alcohol imports through illegal channels, citing major gaps between declared imports and actual consumption.
He made the remarks at a pre-budget meeting for the 2026–27 fiscal year at the NBR headquarters in Agargaon on Wednesday, officials said.
“When we match import data with consumption in hotels, there are major inconsistencies,” he said.
“On the one hand, there is no formal record of imports; on the other, consumption continues. At airports and seaports, containers declared as clothing are found to contain alcohol upon inspection,” he added.
“Can the country run like this? Or will you gradually come under discipline? We seek your cooperation,” he said.
The NBR chief also signalled a possible increase in taxes on the alcohol sector, saying a “sin tax”—similar to those imposed on tobacco and telecom—was under consideration.
“Those involved in producing and serving alcohol are paying taxes comparable to ordinary businesses, despite the sector’s adverse impact on public health and society. We want to increase taxes in this area,” he said.
Rejecting the allegations, Bangladesh International Hotel Association former president Khaled Ur Rahman said member hotels fully comply with regulations.
“Our association includes 54 three- to five-star hotels. We maintain full compliance with all tax and VAT rules. Our operations are completely transparent—like an open book,” he said.
Hotel and bar owners, however, proposed rationalising duties on alcohol and beer imports.
Earlier, the NBR held separate meetings with representatives from the banking, capital market, and insurance sectors as part of its pre-budget consultations.
Association of Bankers Bangladesh Chairman Masrur Arefin said mandatory proof of tax return submission is discouraging funds from entering the banking channel.
“Tax return proof is now required for loans above Tk20 lakh and deposits above Tk10 lakh. As a result, a significant amount of money is staying outside the formal banking system,” he said.
He also proposed withdrawing excise duties on bank deposits.
The NBR chairman expressed concern over the insurance sector, citing lack of professionalism and weak governance.
“There is widespread negative perception about the sector. In many cases, retirees do not receive their due benefits,” he said, adding that restoring discipline is essential.
Representatives from Bangladesh Association of Banks, Dhaka Stock Exchange, and Bangladesh Insurance Association, among others, placed their budget proposals at the meeting.
Bangladesh Jewellers Association proposed replacing the existing percentage-based VAT on gold and diamond sales with a fixed VAT to boost the sector and increase revenue.
Bangladesh Jewellers Association Vice President Md Iqbal Hossain Chowdhury said the current 5 per cent VAT is burdensome as average profit margins in the sector are around the same level.
He proposed a fixed VAT of Tk2,000 per bhori of gold and Tk2,000 per carat of diamond.
The association also called for VAT-inclusive pricing, withdrawal of source tax and VAT at source, and simplification of VAT procedures.
It further urged reducing high duties on diamond imports, expanding the number of gold importers, and ensuring a stable supply of raw materials.
On income tax, the association proposed lowering the minimum tax on turnover from 1 per cent to 0.25 per cent and scrapping the 5 per cent source tax on supply, calling it inconsistent with business realities.
It also demanded permission to organise gold fairs and the introduction of a general amnesty for undisclosed assets.
