B Mirror Report: Commerce Minister Khandakar Abdul Muktadir has assured that the government will not impose any additional tax burden on businesses in the upcoming national budget, despite ongoing fiscal challenges.
He made the assurance while speaking as the chief guest at a pre-budget discussion organised by the Dhaka Chamber of Commerce and Industry (DCCI) in collaboration with Channel 24 and Samakal at a hotel in Dhaka on Sunday (April 13).
The minister said the government is currently under significant financial pressure due to what he described as “over-ambitious projects” undertaken by the previous administration. He added that reducing the cost of doing business and simplifying access to government services are essential to encourage private sector investment and trade.
He also noted that although Bangladesh’s economy is valued at around $460 billion, a large portion of the population remains below the poverty line, while the number of taxpayers is still relatively low.
The minister further pointed to limited energy storage capacity, which forces the country to rely on higher-cost fuel imports from the spot market amid global geopolitical tensions.
In his welcome remarks, DCCI President Taskeen Ahmed stressed the need for automation and simplification of revenue collection systems, along with expanding the tax net to sustain economic growth.
He proposed raising the tax-free income threshold to Tk 5 lakh, capping the maximum personal income tax rate at 25%, aligning tax rates for non-listed companies with listed ones, and abolishing the advance VAT system.
He also called for financial sector reforms to ensure stability, reduce non-performing loans, stabilize foreign exchange reserves, and rationalize policy interest rates to encourage manufacturing investment. He emphasized the need for uninterrupted energy supply, diversification of export products and markets, and targeted incentives for promising sectors.
Special guest Mahbubur Rahman, President of the International Chamber of Commerce Bangladesh, said that despite repeated calls to increase the tax-to-GDP ratio, progress has been limited. He noted that high lending rates and energy shortages are discouraging both domestic and foreign investment.
General Economics Division member secretary Monzur Hossain highlighted the importance of reviving sluggish economic growth, particularly through support for Cottage, Micro, Small, and Medium Enterprises (CMSME) and increased research investment.
Former DCCI President Rizwan Rahman pointed to bureaucratic complexities and alleged harassment from tax authorities as major obstacles for the private sector, while calling for broader tax net expansion and increased spending on healthcare and education.
Former DCCI President Hossain Khaled suggested replacing the current VAT system with a Goods and Services Tax (GST) framework, noting that a large portion of transactions still occurs outside formal channels.
Chief Economist of Bangladesh Bank Akhand Mohammad Akhtar Hossain emphasized the need to attract foreign investment, ensure accountability in public service delivery, and control inflation.
Industry leaders also raised concerns over energy supply constraints, delays in LNG terminal development, lack of confidence in the capital market, and the need for stable exchange rates and lower lending rates.
Participants across multiple sessions stressed comprehensive reforms in taxation, finance, energy, infrastructure, and governance to support sustainable economic growth.
