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European businesses operating in Bangladesh have urged the government to ensure a predictable tax and trade environment, warning that preferential treatment to certain partner countries could create an uneven playing field. The concerns were raised during a pre-budget discussion on Sunday in Agargaon, organised by the European Union Chamber of Commerce in Bangladesh (EuroCham).

EuroCham Chairperson Nuria Lopez said in a statement, “We are looking with concern at how Bangladesh is providing trade preferences to other partners that will create an unfair playing field for European businesses.” She stressed the need for clear and consistent policies, including fixed deadlines for NBR responses to license or approval requests.

Highlighting tax concerns, Lopez noted that the rising burden on multinational companies could discourage investment, emphasizing that policies should support, not hinder, business growth. EuroCham also advocated pursuing a free trade agreement with the European Union, simplifying VAT and customs procedures, and removing procedural bottlenecks to facilitate trade.

The American Chamber of Commerce in Bangladesh (AmCham) echoed the call for long-term tax certainty, proposing gradual corporate tax reductions and structured frameworks for large-scale investments. “These recommendations aim to create a more balanced, transparent and competitive tax system while supporting sustainable revenue generation,” said AmCham President Syed Ershad Ahmed.

AmCham also urged alignment of domestic regulations with international agreements, clearer guidance on tax holidays, improved VAT refund mechanisms, and modernization of tax administration, including the planned separation of the National Board of Revenue (NBR).

Meanwhile, Khorshed Alam, president of the Bangladesh China Chamber of Commerce and Industry, called for lower tax rates for foreign nationals investing in property in Bangladesh, highlighting the broader need for policies that attract and retain foreign investment.