Dhaka: National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan announced today that the government is committed to discontinuing tax exemptions unless absolutely necessary for the national interest. “We are moving away from the tax exemption culture,” he stated. “We have scrapped existing tax exemptions and will not issue new ones. We have prepared a policy, and we will not grant any tax exemptions.”
According to Bangladesh Sangbad Sangstha, the NBR chairman made this declaration during a pre-budget meeting at the NBR conference room in Agargaon, attended by representatives from various financial institutions, including banks, insurance companies, and stock exchanges. The meeting was convened to discuss budget proposals.
Khan addressed the recurring proposals for tax exemptions, arguing that there is no justification for such requests before establishing an entity. “The first demand is for a tax holiday, but this mentality must change,” he asserted. He emphasized that previous tax exemptions have not led to development, and the country is suffering as a result.
He noted that the tax-to-GDP ratio has not improved, with analyses indicating that Bangladesh is losing as much money as it collects in revenue due to tax exemptions. Khan stated the country’s desire to move away from this negative reputation.
On the state of Bangladesh’s capital market, Khan identified poor governance as a fundamental issue. He stressed that no country can develop without a robust capital market, lamenting that Bangladesh remains overly reliant on the banking sector for industrial financing.
Khan criticized regulators for the lack of investor confidence in the capital market, noting that businesspeople prefer bank loans over capital market fundraising. He described the situation as problematic, highlighting that bank loans require repayment within a year, while industrial projects take much longer to become profitable.
The chairman also expressed concerns about unethical practices within the capital market, cautioning that even with tax benefits, no improvement will occur unless investor confidence is restored.