The government of Bangladesh is preparing a wide-ranging package of tax and tariff reforms in the upcoming national budget, with plans to reduce duties on nearly 350 imported items as part of a broader effort to support businesses, lower production costs and facilitate trade.
According to officials, the proposed measures include reductions in customs duties on around 70 products, regulatory duties on approximately 210 items and supplementary duties on about 60 products. The changes are being formulated in line with the National Tariff Policy and commitments under the Trade Facilitation Agreement (TFA).
The products under consideration span a broad range of sectors, including consumer goods, spices, information and communication technology (ICT) equipment, solar energy components, fish, meat and raw materials used in electric vehicle (EV) manufacturing.
Revenue officials said the tariff adjustments have been designed carefully to ensure local industries remain protected while improving access to essential inputs and technology. As part of the initiative, import duties on ICT products such as computers, laptops and monitors could be reduced to below 10 per cent, while new tariff categories and harmonised system (HS) codes may be introduced to facilitate EV imports.
The reform package is also expected to include significant changes to VAT administration. Businesses may no longer be required to submit monthly VAT returns, with quarterly filing being considered instead. The move is aimed at reducing compliance costs, particularly for small and medium-sized enterprises.
In addition, source tax on local procurement of raw materials may be reduced by one percentage point. Corporate taxpayers would be allowed to adjust or claim refunds for excess source taxes paid, while businesses could also receive refunds for overpaid taxes that remain unadjusted for three consecutive years.
Economists and business leaders have broadly welcomed the proposed reforms. Policy Exchange Bangladesh Chairman Dr Masrur Reaz said lower tariffs would help industries that depend on imported raw materials by reducing production costs. He also noted that many ICT products facing high duties are not manufactured locally and deserve policy support as Bangladesh advances toward a digital economy.
Business representatives have similarly praised plans to simplify VAT compliance. However, Metropolitan Chamber of Commerce and Industry President Kamran T Chowdhury called for the abolition of turnover tax, arguing that it contradicts basic taxation principles.
Officials indicated that the revised proposals were shaped following recent policy guidance from Prime Minister Tarique Rahman, with the government prioritising trade facilitation, investment promotion and a more predictable tax environment over aggressive revenue collection.
The upcoming budget is expected to outline a longer-term tax strategy, including fixed tax rates for individuals and corporations over the next five years, providing greater certainty for businesses and investors.
