The Metropolitan Chamber of Commerce and Industry has called for an investment-friendly tax regime and a broader tax base in the national budget for the 2026–27 financial year.
The chamber’s president, Kamran T Rahman, presented the proposals at a pre-budget meeting held at the National Board of Revenue headquarters in Dhaka on Saturday.
He said the domestic industrial sector was facing significant pressure from global economic uncertainty, high inflation, slower economic growth and elevated interest rates. “SMEs, in particular, are the worst affected. In this context, adopting business and investment friendly measures is necessary in the next budget,” he said.
Mr Rahman highlighted the need to expand the tax base, noting that although more than 10 million people hold electronic taxpayer identification numbers, fewer than half regularly file returns. He added that around 90% of the economy remains informal, underlining the urgency of bringing more individuals and businesses into the tax system.
To address this, he proposed a nominal minimum annual tax of Tk100 or Tk1,000 and the introduction of a simplified one-page digital return through a mobile application. He said such measures could increase compliance and reduce tax evasion.
The chamber also recommended further digital reforms, including a unified taxpayer profile instead of separate systems for income tax, value-added tax and customs. It called for simplifying the VAT structure, automating input tax credit and allowing online hearings for appeals and tribunals.
On the presumption-based sector revenue system, Mr Rahman said mandatory requirements across 39 sectors were creating complexity and hindering ease of doing business. He urged the authorities to simplify, rationalise and digitally verify the system.
The chamber further proposed a dedicated tax structure for small and medium-sized enterprises, including lower turnover tax, access to input tax credits and reduced VAT and duties on raw materials.
The meeting was chaired by National Board of Revenue Chairman Md Abdur Rahman Khan, who said the tax return filing system had now been fully digitised and simplified. He noted that about 4.4 million electronic returns had been submitted, compared with fewer than 300,000 paper filings.
Mr Khan said the digital system automatically calculates tax liabilities, rebates and taxable income, reducing errors and the risk of harassment. He added that once the electronic tax deduction at source system is fully implemented, income from multiple sources will automatically appear in taxpayers’ returns.
He said the aim was to allow taxpayers to file returns and pay taxes online without visiting offices, while ensuring officials only visit businesses when necessary.
Mr Khan added that the broader goal of the reforms was to create a transparent, technology-driven and business-friendly revenue system that would support trade, commerce and a wider tax base.
