Written by The Banking Post
The president of American Chamber of Commerce in Bangladesh has called for sweeping digital reforms in Bangladesh’s accounting, customs and tax systems, saying automation is critical to reducing corruption, attracting foreign investment and improving revenue collection.
Speaking at a pre-budget roundtable, Syed Ershad Ahmed said bureaucratic complexity, weak tax administration and corruption continue to raise the cost of doing business and undermine investor confidence.
“Foreign investors often perceive Bangladesh as a corrupt country. While corruption may not be eliminated entirely, digitalisation can help reduce it to a tolerable level,” he said.
He said digital accounting and auditing systems would improve transparency, reduce business risks and strengthen Bangladesh’s image among global investors.
Ahmed also pointed to customs bottlenecks as a major obstacle for businesses, saying importers frequently face delays, multiple layers of approval and disputes over HS code classifications when bringing in capital machinery and raw materials.
He urged faster customs automation and the introduction of e-signatures to simplify processes and improve ease of doing business.
The tax system also needs urgent modernisation, he said, noting that businesses continue to struggle with compliance issues involving the tax, VAT and customs wings of the National Board of Revenue.
According to him, full automation of VAT collection and tax administration could strengthen revenue mobilisation while reducing leakage in government earnings.
He also advocated wider adoption of cloud-based accounting, real-time reporting, e-invoicing, AI-driven tax management and big data tools to build a more efficient revenue system.
Rather than expanding physical tax offices at the upazila level, he said authorities should focus on using technology to widen the tax net.
He further called for bringing the growing digital economy—including freelancers and offshore back-office service providers—under the formal tax framework, noting that a large volume of income generated in these sectors remains outside the revenue system.
Business leaders say such reforms could not only boost tax compliance but also help position Bangladesh as a more transparent and investment-friendly destination.
