Bangladesh’s business community has urged the government to reform the country’s tax structure, warning that high VAT, corporate taxes and multiple import-stage duties are weakening industrial competitiveness and discouraging investment.
Business leaders said simultaneous payments of VAT, Advance Income Tax (AIT), Advance Tax (AT) and customs duties are creating severe liquidity pressure, particularly for import-dependent industries and SMEs.
Japan-Bangladesh Chamber of Commerce and Industry noted that Bangladesh’s corporate tax rates remain higher than regional competitors such as Vietnam and Thailand, reducing the country’s attractiveness to foreign investors.
Meanwhile, the Federation of Bangladesh Chambers of Commerce and Industry proposed reducing the minimum turnover tax and lowering corporate tax rates to support struggling businesses and improve industrial growth.
Officials from the National Board of Revenue said the upcoming national budget will focus on expanding digital tax administration, including e-VAT systems and automated monitoring, to simplify compliance and improve revenue collection.
