Govt Prioritises Local Producers Over Importers: NBR Chief

NBR Chairman Md Abdur Rahman Khan

Speaking at a pre-budget meeting at the Revenue Building in Dhaka, he emphasized the importance of a duty gap favoring domestic manufacturers. “In principle, we’ve said there shall be a duty gap between our manufacturers and commercial importers,” he stated.

Khan also pledged NBR’s support to remove obstacles for honest and compliant businesses, warning that misuse of facilities would lead to disqualification from operating in the country.

He expressed concern over the low number of businesses registered for Value Added Tax (VAT), which currently stands below 600,000. “This should have crossed one crore long ago,” he said. Despite initiatives like the installation of electronic fiscal devices (EFDs), results have been underwhelming. However, he assured that alternatives are being explored.

Khan highlighted administrative challenges but said the NBR is working to resolve them. He also acknowledged pressure from development partners due to Bangladesh’s low tax-to-GDP ratio—currently at 7.3%, far behind regional peers.

“This low ratio limits our ability to invest in key sectors like health, education, and social protection,” he noted.

With only 4 million out of 11.4 million TIN holders filing tax returns, the NBR is intensifying efforts to boost compliance and revenue. The government aims to raise the tax-to-GDP ratio to 11.2% by FY2025-26 through reforms, including a simplified 15% VAT system.

The International Monetary Fund (IMF) has also urged Bangladesh to increase tax collection, recover defaulted loans, and implement banking reforms.