Dhaka: National Board of Revenue (NBR) chairman Md Abdur Rahman Khan today announced that the government is actively working towards establishing a logically discrimination-free tax structure aimed at fostering business growth. During a pre-budget meeting held at the conference room of the Revenue Building in Agargaon, he emphasized the need to eliminate the culture of tax exemptions, which he believes leads to misuse and systemic inefficiencies.
According to Bangladesh Sangbad Sangstha, Rahman highlighted the current discrepancies within the Value Added Tax (VAT) system, stating that it does not align with its intended purpose. He pointed out that the existing VAT rates of 5 percent, 7.5 percent, 10 percent, and 15 percent are detrimental to the business community, leading to a self-imposed loss that businesses are now struggling with.
He further elaborated that the NBR is open to reducing the VAT rate to a single-digit figure, contingent on the consensus of the business community. Rahman noted that the layered imposition of VAT results in increased consumer prices, thereby impacting purchasing power, and suggested that proper implementation could stabilize inflation rates.
Recent data from the Bangladesh Bureau of Statistics (BBS) indicates a continued decline in the general point-to-point inflation rate, dropping to 9.32% in February from 9.94% in January. This decrease is primarily attributed to reduced food prices, with food inflation decreasing from 10.72% in January to 9.24% in February.
Rahman stressed the necessity of instilling more discipline in VAT collection, asserting that a significant portion of national revenue should be derived from VAT and income tax. He argued that a comprehensive adoption of VAT within the business ecosystem would ensure inclusivity and enhance collection efficiency.
The NBR chairman expressed concern over the uneven burden borne by current VAT payers, as many businesses remain outside the VAT net. He underscored the importance of addressing this disparity to create a fair and equitable tax environment.