No room for significant tax rate reduction-NBR Chairman

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No room for significant tax rate reduction-NBR Chairman

B Mirror Desk : In view of Md. Abdur Rahman Khan, chairman of the National Board of Revenue (NBR), there is no room for significant tax rate reductions. But even if a business loses money, it still has to pay taxes, and the next budget will try to address this.

“The overall tariff rate will be further rationalized in the context of the new duty imposed by the USA,” he stated. Speaking as a special guest at the 2025–26 pre-budget meeting held on Sunday at the Hotel Intercontinental, he made the observation.

The Dhaka Chamber of Commerce and Industry (DCCI) arranged the conversation, which was sponsored by Channel 24 and the Daily Samakal. The program’s final remarks were given by Samakal Editor Shahed Muhammad Ali, who was moderated by DCCI President Taskin Ahmed.

Pursuant to the NBR Chairman, one of the primary causes of the low tax-to-GDP ratio in the nation is the evasive tax-paying behavior. For instance, he stated that approximately 4.5 million of the 1.45 crore TIN holders in the nation have filed tax returns. Since they have no taxable income, two-thirds have filed zero returns.

He stated, “We have no alternative but automation,” in response to businessmen’s demand that the NBR operations be fully automated. In this respect, we are making every effort. The mobile app for tax payment is currently in development. We are getting ready for the upcoming fiscal year, when all individual income tax payers will be able to file their forms online. Additionally, we’re working to get business taxpayers to the same process.”

He added that there is no room to lower the income tax rates for individuals and businesses, but that the upcoming budget will send a positive message to taxpayers: The government is working to make the tax system non-discriminatory, and the majority of revenue comes from income tax and VAT, both because of the transition from LDC and in light of the new tariffs imposed by the US.

In general, the government wants to create a non-discriminatory tax policy; we want the same rate for everyone, not lower for some and higher for others. Long-standing tax exemptions will be reduced in the new budget.

 

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