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Published : 05 Apr 2026, 10:59 PM
The American Chamber of Commerce in Bangladesh (AmCham) has proposed a 5 percent cash incentive on card-based payments to accelerate digital transactions.
Under the proposal, customers would receive a 3 percent incentive while merchants would get 2 percent.
AmCham suggested that banks, businesses, or Mobile Financial Service (MFS) providers could initially fund this incentive.
The proposal was placed during a pre-budget consultation meeting at the National Board of Revenue (NBR) building in Agargaon on Sunday.
AmCham also recommended allowing the direct application of tax rates as per Double Taxation Avoidance Agreements to bypass the need for separate certificates.
If certificates remain mandatory, they suggested a seven-day deadline for issuance upon application.
NBR Chairman Abdur Rahman Khan, who presided over the session, expressed his disappointment regarding current VAT compliance.
He noted that although the minimum VAT registration threshold was lowered from Tk 30 million to Tk 5 million last year, the collection results remain "highly discouraging".
"Our goal is that everyone involved in business must pay VAT," the chairman said.
He added that the NBR is currently evaluating the feasibility of a uniform VAT rate for the service sector to analyse its overall economic impact.
The Bangladesh-China Chamber of Commerce and Industry proposed capping the maximum personal income tax at 20 percent and waiving surcharges on assets up to Tk 1 billion.
They also advocated for making it mandatory for the garment industry to source 50 percent of raw materials locally.
The Bangladesh Women Chamber of Commerce and Industry sought to raise the tax-free income limit to Tk 4.5 lakh, reduce trade licence fees by 50 percent and provide VAT exemptions for showrooms owned by women entrepreneurs.
