Policy will be 'simple' even if tax rates don't decrease, says NBR chairman

The NBR should enter into partnerships with city corporations and municipalities to increase tax revenue, a seminar suggests

National Board of Revenue (NBR) Chairman Abdur Rahman Khan has said the tax rate will not be reduced, despite businessmen's proposals for the new fiscal year being “fair and reasonable”.

However, he promised to “simplify” the laws creating obstacles for business or increasing business costs.

At a seminar on Sunday, the chairman said: “Most of the recommendations and demands we are receiving are about reducing taxes. In almost every case, these demands and recommendations are fair and reasonable.

“As the chairman of the NBR, it is difficult for me to find a balance between losing revenue and supporting business and commerce.”

He said, “In this year’s budget, we are trying to simplify the policy processes to make it convenient for businessmen.

“Our main goal is to reduce the cost of compliance in three sectors—income tax, VAT, and customs—and to ensure that the government’s tax revenue does not decrease.”

The seminar was organised by the Institute of Chartered Accountants of Bangladesh (ICAB), the Foreign Investors Chamber of Commerce and Industry (FICCI), and the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) at a Dhaka hotel.

Addressing the businessmen, Abdur said: “You must understand the government has taken your complaints and concerns seriously, and we are both sympathetic and empathetic.”

The keynote address at the seminar was delivered by Policy Exchange Bangladesh Chairman M Masrur Reaz and Snehasish Barua, partner at Snehasish Mahmud & Company.

Since a large part of Bangladesh’s private sector does not pay taxes, the burden falls on leading companies doing business in full compliance, Snehasish said.

Regarding the NBR’s actions to increase the tax net, he said: “NBR needs to partner with city corporations and municipalities as these institutions are collecting proof of income tax return filing.

“By doing so, they can significantly increase tax compliance. We have also recommended a similar provision for VAT.”

FICCI President Javed Akhtar wants a parity-based law to attract foreign investment.

“As we are evolving towards being a middle-income country, foreign direct investment will become a big issue,” he said.

“The companies that will come to Bangladesh in the future will do so because of the unique location. We can achieve a green value chain or a sustainable production chain through that.

“When you look at the laws and regulations, it is not fair in many cases.

“I am not saying I should be given benefits because I run a clean chain. My question is—can you make it equitable?” he added.