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Chairman of the National Board of Revenue (NBR), Md Abdur Rahman Khan, has said the government has no plan to offer further tax holidays for any industry.
Bangladesh aims to gradually move away from the culture of tax holidays (exemptions), emphasising that all businesses must pay taxes regardless of the rate.
“We want to come out of this tax holiday culture step by step. Whether taxes are low or high, everyone must pay,” he said at a pre-budget discussion held at the NBR headquarters on Tuesday.
The NBR chairman made the remarks following a demand for at least a 15-year corporate tax holiday for the semiconductor industry to encourage local and foreign investment. Stakeholders also requested VAT waivers for 15 years on office rent, research, and training labs.
At the meeting, leaders from 12 organisations—including the Bangladesh Semiconductor Industry Association (BSIA), Bangladesh Aluminium Manufacturers Association (BAMA), Accumulator Battery Manufacturers and Exporters Association of Bangladesh (ABMEAB), Bangladesh Electrical Association (BEA), and Bangladesh Manufacturers Association of Transformers and Switchgears (BMATS)—presented their written proposals to the NBR chairman.
The NBR chief said the authority is struggling to control widespread tax exemptions, which carry significant side effects.
“In Bangladesh, some groups operate multiple businesses—from industry to media and beyond. If tax incentives are offered in one area, businesses tend to shift there. This creates leakages across the system,” he noted.
He stressed that investment decisions should be based on business viability, not tax breaks.
“Pay taxes first, then assess whether your net profit is positive and viable. Only then should you invest. The mindset of doing business only when there is a tax holiday must change,” he said.
At the meeting, a Bangladesh Electrical Association (BEA) representative and owner of AH Electric Company, Hares Mohammad, highlighted complications in filing VAT returns online.
He said that although the manual system has been discontinued, many previous returns have not been updated in the system, creating difficulties in online submission. He also alleged that the updating process is complex and often delayed due to multiple layers of verification.
In response, the NBR chairman said the online system was introduced to make the process easier, more transparent, and faster for taxpayers.
“Taxpayers were given the opportunity to incorporate previously submitted manual returns into the system on their own initiative, which was supposed to be completed by March,” he said.
He instructed officials to immediately identify pending returns, determine the reasons behind delays, and resolve them swiftly.
Even after the March 31 deadline, any remaining pending returns must be reviewed and settled promptly, he said, adding that departmental action would be taken in cases of negligence or irregularities.
Calling for open feedback, he urged taxpayers to share their problems without hesitation, assuring that necessary steps would be taken to address them.
Business representatives from various sectors also emphasised the need to simplify and strengthen the VAT system.
In a written proposal, the Bangladesh Sustainable and Renewable Energy Association (BSREA) said the current tax and duty structure, along with the tax assessment process, are major barriers to expanding rooftop solar. The association urged the government to address these issues in the next budget.