Tax exemptions to be cut 'drastically' in response to IMF's conditions

says NBR chief

FE Team | Published: December 06, 2024 00:13:44

Bangladesh must meet strict conditions if it wants to get budget support from various partner organisations, including the International Monetary Fund (IMF), and, as a result, the current tax exemptions in industry and trade will be reduced 'drastically', according to National Board of Revenue Chairman Md Abdur Rahman Khan, reports bdnews24.com.
"We have a big challenge ahead of us, we have to increase our revenue," he said. "We have to raise the country's income. We have had many deficit budgets. We have had to take out many loans. These have now become a burden."
Mentioning that the interim government is seeking 'budget support' from other partners, including the IMF, he said: "They [the representatives] said, you [the NBR] give tax exemptions in 300,000 to 350,000 instances each year. These have to be reduced."
The comments from the NBR chief came as he inaugurated the Walton-organised industrial fair 'ATS Expo-2024' on Thursday.
"We have given these [tax exemptions] or you [Walton] could not have come here. We have given them to attract FDI [foreign direct investment]. To increase the country's investment. Now tax expenditure [exemptions] must be reduced drastically."
He also urged all taxpayers to be "ready to pay taxes". He also noted that all initiatives will be taken to stop the harassment of taxpayers.
Stating that a national single window is being set up, Khan added that all business registration certificates will be available from the same place from March 2025.
The NBR chief said, "We will also bring corporate tax returns online from next year, so you should not have to suffer the bitterness involved in paying taxes again."