Written by The Banking Post
The upcoming national budget will prioritise removing non-tariff barriers rather than cutting tariff rates, as the government looks to reduce the cost of doing business without hurting revenue collection.
National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan outlined the approach during a pre-budget discussion, where business groups presented their proposals for FY2026–27.
He said easing regulatory and procedural hurdles would offer relief to businesses and support expansion while keeping fiscal stability intact.
“There will be no leniency in identifying tax evaders. At the same time, we will work to reduce the burden and harassment on compliant taxpayers,” he said.
The NBR chief also stressed the need to widen the tax base, particularly in value-added tax (VAT). Despite lowering the VAT registration threshold to Tk 50 lakh, the number of registered entities remains below expectations.
“Given the size of the economy, the number of VAT-registered entities should be at least 10 lakh,” he noted.
He added that corporate tax rates have already been reduced significantly over time, leaving limited room for further cuts. However, the authority will ensure that the effective tax burden does not rise.
Automation will be another key focus. Corporate tax return submissions are set to go fully online from next year, while an online refund system is nearing completion to improve transparency and reduce delays.
The revenue authority aims to balance stronger compliance with a more business-friendly environment, incorporating private sector feedback into the final budget framework.
Business leaders, meanwhile, reiterated the need for reforms to expand the tax net, simplify procedures and improve the overall investment climate.
