Finance Adviser Assures Business-Friendly National Budget

Finance Adviser Salehuddin Ahmed

“We are committed to presenting a business-friendly budget that promotes investment, enhances GDP, and generates employment,” Salehuddin said. “We have already received a range of practical suggestions from the business community to inform our approach.”

His comments came after a pre-budget meeting with business leaders at the Finance Division Conference Room in the Bangladesh Secretariat, where they discussed key issues for the upcoming fiscal year.

The Finance Adviser highlighted that one of the primary requests from the business community was a reduction in tax rates across various sectors, along with the introduction of streamlined, online tax payment systems.

Salehuddin also noted that the government is considering the business community’s suggestions on improving customs procedures, specifically related to the Harmonized System (HS) code.

Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury said the discussions centered largely on tax-related issues, particularly income tax, under the National Board of Revenue (NBR). Chowdhury emphasized that, while the NBR's efforts in revenue mobilization and tax collection are crucial, the primary focus must be on improving industrial competitiveness.

“The Finance Adviser was receptive to our concerns, especially about NBR’s role in tax collection. However, our main priority remains enhancing the competitiveness of our industries,” Chowdhury explained.

During the meeting, business leaders from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA) presented their suggestions on various fiscal matters.

Notably, BKMEA President Mohammad Hatem expressed hope that the meeting would lead to meaningful changes in the taxation system. The BGMEA also requested a revision of the current provision for a 1 percent Advance Income Tax, advocating that tax be levied only on profits, rather than being deducted at source on total sales.

While there were no proposals to alter corporate tax rates, business leaders called for a reduction in VAT in specific sectors. They also urged for the standardization of the HS code to six digits for more efficient customs clearance under the bond management system.

The BKMEA also recommended direct cash incentives for export proceeds to simplify procedures and reduce bottlenecks. In addition, the association suggested maintaining the source tax for the Ready-Made Garment (RMG) sector at 0.5 percent for the next five fiscal years (until FY30) as a final tax realization.

Hatem added that the business community welcomed improvements at Chattogram Customs House but urged the government to further streamline VAT regulations and address complexities around HS codes.

The Finance Adviser assured the business leaders that their concerns would be taken into account when formulating the upcoming budget, which is expected to prioritize both local business needs and broader economic goals.