Next budget to prioritise easing trade barriers, promoting investment: NBR Chief

Chairman of National Board of Revenue (NBR) Md Abdur Rahman Khan has announced that the upcoming national budget will place strong emphasis on removing non-tariff barriers to support entrepreneurs and facilitate smoother business operations across Bangladesh.

Speaking at a pre-budget meeting held at the Revenue Building conference room in Dhaka on Tuesday, the NBR chief said that creating a business-friendly environment is the central goal of the next fiscal budget. He assured business leaders that the revenue authority is working actively to eliminate obstacles that hinder commercial growth. “We will try to ease the non-tariff barriers for you, we will remove all hurdles from your path—that is our main target, we are working on it,” he stated.

The NBR chairman also highlighted the existing disparity between the official tax rate and the effective tax rate, pledging efforts to reduce this gap to ensure a fairer taxation system. He further revealed that the board is developing a mobile application to help small and informal businesses that currently lack formal accounting systems. Through this digital platform, business owners will be able to store financial records and accurately calculate taxes, including VAT.

Outlining the broader objectives of the NBR, Abdur Rahman said that the organisation aims to increase revenue collection by expanding the tax base and reducing tax evasion, which remains a major source of revenue leakage. He stressed the importance of eliminating unnecessary tax expenditures and hinted at an upcoming shift in the long-standing practice of widespread tax exemptions. “Those who have long enjoyed reduced tax rates and exemptions will now need to contribute at regular rates. While certain exemptions will remain to promote new investments, the overall culture of tax exemption must be scaled back,” he said.

Additionally, the NBR chairman underscored the need for rationalising tariffs, noting that existing issues related to tariff valuation and the Harmonised System (HS) Code would be addressed in a focused manner. He reaffirmed the government’s commitment to shaping a more transparent and supportive fiscal environment for businesses as part of the national development strategy.