Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has urged the government to simplify the country’s taxation system, warning that its complexity is discouraging both local and foreign investment.
Speaking at a recent conference, Mr. Hatem criticized the existing tax framework, describing it as complicated and unfair to businesses. He particularly questioned the practice of collecting advance income tax regardless of whether companies make profits or incur losses.
According to him, businesses often face a higher effective tax burden than the official corporate tax rate due to advance tax deductions and difficulties in obtaining refunds.
Mr. Hatem said the business community is not demanding lower tax rates but wants a simpler and more transparent system. He also expressed concern over what he termed a conflict of interest in the current arrangement, where the same authorities are involved in both formulating tax policies and collecting taxes.
He warned that unless reforms are introduced, Bangladesh may struggle to attract new investment, as entrepreneurs and foreign investors seek more business-friendly tax environments.
