At a hearing held on Wednesday (September 10) at the headquarters of the National Board of Revenue (NBR), business owners in the country charged revenue officials with misconduct, harassment, and extortion. During the meeting, traders also blamed the NBR for obstructing the country’s economic progress.

“Officials from the NBR put forth baseless allegations against exporters and importers,” claimed Nasir Khan, managing director of JC Suz. He further noted that when the High Court exonerates companies from these unfounded charges, no punitive measures are taken against the revenue officials involved. He asked, “Under Bangladeshi law, filing a false case is an offense. Why isn’t there punishment for those who file such false cases?”

Nasir Khan claimed that his business has not been able to grow despite 35 years of shoe exports, attributing this stagnation to a flawed revenue structure. He stated, “The primary reason for the defaults we see is the NBR. You are hindering our growth, as if we are bonsai plants,” he remarked.

A survey conducted by the Center for Policy Dialogue (CPD) revealed that over 72 percent of companies view bribery and harassment as significant barriers to their business growth. Additionally, 82 percent of respondents deemed the current tax rate as unreasonable.

A representative from a prominent steel mill accused Chittagong Customs of intentionally directing their goods to private container depots, resulting in increased costs and delays.

Mahbubur Rashid Jewel, the general secretary of the Bangladesh Re-Rolling Mills Association, pointed out that the primary challenge they face is the turnover tax. He explained that while profits in heavy industries are low, the turnover is substantial, which adds extra pressure on them.

Md. Abdul Wahed expressed his frustration regarding the delays in receiving refunds. Imran Hasan, the general secretary of the Bangladesh Restaurant Owners Association, remarked, “NBR officials collect the funds. Only 20 percent of the total VAT and taxes are actually deposited into the state treasury; the remainder is lost to corruption, facilitated by collusion between NBR officials and businessmen.”

In response to the grievances of the business community, NBR Chairman Md. Abdur Rahman Khan acknowledged, “Businesses contribute a portion of their hard-earned income as taxes, yet they often feel they do not receive adequate services or benefits in return.” He recognized that the turnover tax has become a burden but emphasized that it is necessary to address the revenue deficit.

The chairman further stated, “We must enhance our revenue; this is the reality. Everyone must contribute. As a nation, we are currently facing significant debt.”

He added that the NBR is now planning to bring some reforms to make the rules easier for businessmen. These include: allowing the release of raw materials under bank guarantees, introducing bond automation and implementing a Grievance Redress System. He urged traders to use this platform.