Dhaka: The Metropolitan Chamber of Commerce and Industry (MCCI) has emphasized the need for an investment-friendly tax regime, widening of the tax net, a digital tax system, and supportive policies for small and medium enterprises (SMEs) in the upcoming national budget for FY 2026-27.
According to Bangladesh Sangbad Sangstha, MCCI President Kamran T. Rahman presented the proposals at a pre-budget meeting held today at the conference room of the National Board of Revenue (NBR) in the capital. He highlighted the challenges faced by the domestic industrial sector due to global economic uncertainty, high inflation, lower GDP growth, and elevated interest rates. Rahman stressed the importance of adopting business and investment-friendly measures in the next budget, particularly to support SMEs, which are significantly impacted.
Rahman pointed out that although there are over 10 million e-TIN holders, less than half regularly submit tax returns. He emphasized the urgency of incorporating the large informal segment of the economy into the tax system, proposing a nominal minimum tax and a ‘one-page digital return’ system through a mobile app to increase taxpayer numbers and reduce tax evasion.
MCCI recommended digital tax reforms, including a unified taxpayer profile and simplifying the VAT structure. It proposed automating input tax credit and introducing online hearings for appeals and tribunals. Rahman also addressed the complexities created by mandatory PSR requirements in 39 sectors, suggesting simplification, rationalization, and digital verification.
The chamber advocated a separate tax structure for SMEs, reducing turnover tax, granting input tax credit benefits, and rationally reducing VAT and duties on raw materials. The meeting was chaired by NBR Chairman Md. Abdur Rahman Khan, who highlighted the fully online income tax return filing system and its growing popularity, with 4.4 million e-returns submitted compared to fewer than 300,000 paper returns.
Khan noted that the e-return system automates tax calculations, rebates, and taxable income, reducing errors and harassment. He mentioned plans for a fully digitized source tax deduction system, which will streamline the process by reflecting income from various sources in tax returns. The NBR aims to enable taxpayers to file returns and pay taxes online, minimizing unnecessary visits to tax offices and business premises.
Khan concluded by stating that the core objective of these tax reforms is to create a business-friendly, transparent, and technology-driven revenue system to expand trade, commerce, and the tax base.