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Business leaders have warned that excessive increases in tax rates are likely to encourage tax evasion.
“When I can’t make a profit due to additional taxes, I will be forced to resort to undue means,” said Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI), at a programme held on Wednesday at the capital’s Gulshan Club.
The event on salient features of the Finance Ordinance 2025 was organised by SMAC Advisory Services Limited.
Citing the automobile sector as an example, he said, “The tax rate has suddenly jumped from 10% to 25%. Those who are currently importing vehicles by paying proper taxes will now be tempted to evade taxes and import illegally. Such abrupt policy changes make enforcement difficult.”
Mustafa Alim Aolad, a Chief Financial Officer, criticised the tax authority’s unrealistic profit expectations.
“Every year, businesses are asked by tax officials to show an increased gross profit compared to the previous year. How can a business continue to show higher profits indefinitely? It’s absurd. That’s why so many cases remain stuck in the High Court for years,” he said.
Iqtiar Uddin Md Mamun, Commissioner of the Large Taxpayers Unit, observed that a major cause of tax-related complications is the lack of trust between businesses and officials of the National Board of Revenue (NBR).
He noted that 40% of the country’s economy remains informal.
“Many companies report losses, yet the national economy is growing. How is that possible?” he questioned.
Delivering the keynote address, Snehasish Barua, FCA and a renowned tax advisor, provided an in-depth analysis of the amendments introduced in the Finance Ordinance 2025. His presentation highlighted key updates, including increased tax rates, projected tax burdens, and major changes in both personal and corporate tax regulations.
Dr Md Abdur Rouf, a member of the NBR, urged companies to become tax-compliant.
Speaking directly to corporate representatives, he said: “Some companies instruct their employees to evade taxes. You must not follow such directives, even if they come from your employers.”
SMAC Advisory Services Ltd directors Zareen Mahmud Hosen and Sukanta Bhattacharjee also spoke at the event.
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