In a pre-budget discussion, NBR Chairman Abdur Rahman Khan emphasized the importance of increasing revenue through improved tax compliance and curbing tax evasion, without raising tax rates, highlighting the challenges of balancing business-friendly policies with revenue collection.
The National Board of Revenue (NBR) faces the challenging task of increasing revenue while ensuring a business-friendly customs system, according to NBR Chairman Abdur Rahman Khan. Speaking at a pre-budget discussion with representatives from various business, entrepreneur, and importer associations, he addressed the dual responsibility of boosting revenue and facilitating a conducive business environment.
“The goal is not to increase tax rates but to enhance tax compliance and reduce tax evasion,” Khan stated. He acknowledged that while many of the demands from businesses for tax and customs reductions were reasonable, fulfilling all requests could negatively impact the government’s revenue collection. He expressed a desire to prevent an increase in tax burden while focusing on improving compliance to increase revenue in the upcoming budget.
Khan assured participants that despite not being able to meet all demands, efforts would be made to make business operations easier. “This country belongs to all of us, and we all have to contribute to revenue generation,” he said, stressing that wealthier individuals would pay more taxes, while those with lower incomes would contribute less or receive government subsidies.
During the discussion, Khan responded to a request from cigarette manufacturers seeking a reduction in excise duties. While he ruled out a tax cut, he suggested that tax structures might be revised in the future, particularly regarding the integration of lower-tier cigarette products. However, he cautioned that such changes might lead to an increase in illegal cigarettes, resulting in lost government revenue.
Khan also addressed concerns raised by the bidi (traditional cigarette) industry about counterfeit brand rolls, warning that if such practices continued, it could lead to stricter regulations and even a separate law for bidi manufacturers. He pointed out that although bidi manufacturers pay lower taxes compared to cigarette companies, they tend to evade taxes more frequently.
In response to concerns from the pharmaceutical industry about import duties and HS code issues, Khan assured the representatives that efforts would be made to resolve these challenges. Additionally, he committed to facilitating mobile companies by addressing the need for separate procedures with the Bangladesh Telecommunication Regulatory Commission (BTRC) to prevent unnecessary delays.
Liberty News’ economic correspondent states that Khan also addressed complaints of harassment by customs officers, promising that the NBR would take steps to eliminate such issues and ensure smoother operations for businesses.
LND/BG
