FICCI submits budget proposals to NBR

The Foreign Investors' Chamber of Commerce and Industry (FICCI) on Tuesday presented its proposal for the National Budget 2025-26 aimed at creating an investment-friendly environment in Bangladesh.

The pre-budget meeting was organized by the National Board of Revenue (NBR) at its conference room with Chairman Md Abdur Rahman Khan in the chair, UNB reports citing a media release. 

FICCI President Zaved Akhtar led the delegation, with committee members.

Among the key proposals, FICCI emphasized the importance of collaboration with the NBR to create a more integrated tax system that streamlines revenue collection processes and improves the effectiveness of internal revenue mobilization efforts.

The FICCI recommended the recognition and establishment of a clear distinction between policy formulation and revenue collection. This separation is seen as a critical step in ensuring greater efficiency, transparency, and fairness in the tax system.

The chamber highlighted the need to shift towards a more robust direct taxation system. They proposed the establishment of a dedicated Data & Analytics Team within the NBR to drive this shift, enabling more effective tax collection and compliance.

In an effort to attract more foreign investments, FICCI suggested optimizing the effective tax rate by withdrawing thresholds for inadmissibility, rationalizing Tax Deducted at Source (TDS), and gradually eliminating the minimum tax. These steps are aimed at creating a more competitive tax environment, ultimately fostering greater FDI inflow.

Recognising the global shift towards sustainability, FICCI proposed introducing preferential tax rates and excise benefits to incentivize the development of green supply chains in Bangladesh. This would not only align with global trends but also position the country as a leader in green manufacturing.

FICCI recommended the implementation of a unified VAT rate, focusing exclusively on value-added tax. This would simplify the VAT structure and reduce complexities for businesses while ensuring that the tax system remains efficient and equitable.

To further streamline trade and ensure timely business operations, FICCI called for the faster resolution of issues related to imports and exports, reducing delays and increasing the ease of doing business in Bangladesh.