Dhaka: The Small and Medium Enterprise (SME) Foundation has put forward a proposal to implement Preferential Tax Regimes for SME entrepreneurs in the country to facilitate further growth in the sector.
According to Bangladesh Sangbad Sangstha, the foundation is advocating for annual turnovers of up to Taka 1 crore to be exempt from VAT. Additionally, they propose a fixed tax of Taka 35,000 per month for turnovers between Taka 1 crore and Taka 2 crore, Taka 75,000 for turnovers between Taka 2 crore and Taka 3 crore, and Taka 1,50,000 for turnovers between Taka 3 crore and Taka 5 crore. These proposals were presented by SME Foundation General Manager Mohammad Jahangir Hossain during a view-exchange meeting on ‘SME-friendly budget proposals 2025-26’ at the ERF auditorium in the capital.
The meeting was a joint effort between the SME Foundation and the Economic Reporters Forum (ERF). SME Foundation Chairperson Md Mushfiqur Rahman, who served as the chief guest, emphasized the importance of establishing a preferential tax regime to protect and promote SME interests. He highlighted ongoing discussions with stakeholders, trade bodies, and the revenue board, expressing optimism that some proposals would be approved by the government.
SME Foundation Managing Director Anwar Hossain Chowdhury described SMEs as the backbone of the economy, calling for increased governmental sensitivity towards SME entrepreneurs. He pointed out that SMEs have generated significant employment opportunities nationwide and urged for a separate budgetary allocation for the SME Foundation annually.
In his presentation, Jahangir also suggested reducing the VAT rate from 15 percent to 10 percent, increasing import duties on finished goods to protect local industries, reducing the corporate tax rate for non-listed SMEs from 27.50 percent to 20 percent, and allocating specific budgetary resources for the SME Foundation. He reported that after thorough consultations involving 34 associations and five research firms, the foundation narrowed down over 300 budget proposals to 140, which were submitted to the revenue board in a pre-budget meeting.