Leading industry bodies have urged sweeping fiscal reforms ahead of the FY 2026-27 national budget, focusing on reducing housing costs, rationalising import duties, and easing tax burdens on manufacturers.
On Wednesday, 12 organisations submitted their proposals at a pre-budget meeting with the National Board of Revenue (NBR), chaired by its Chairman Md Abdur Rahman Khan.
The Real Estate and Housing Association of Bangladesh (REHAB) and land developers called for a significant cut in land and flat registration costs, saying high transaction expenses are hindering housing affordability.
REHAB proposed reducing gain tax to 3.0 per cent, stamp duty to 1.0 per cent, and local government fees to 1.0 per cent. It also suggested lowering VAT on flat sales to 1.5-3.0 per cent, with a uniform 2.0 per cent rate for registration.
To formalise the secondary market, the association proposed a unified 4.5 per cent registration fee for resale of flats and plots.
REHAB also sought reinstatement of a previous provision allowing investment of undisclosed funds in housing without questions over the source of funds.
Senior Vice-President Liakat Ali Bhuiyan said overseas Bangladeshis often do not declare remittances.
"If not invested in flats, the money remains undisclosed or 'black' and eventually leaves the country," he said.
In response, NBR Chairman Abdur Rahman Khan ruled out such provisions.
"Sending money from abroad is now easy and incentivised through formal channels.
Anyone with undisclosed funds must pay tax at regular rates to legalise them-there is no alternative," he said.
Meanwhile, the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) urged the NBR to rationalise duty structures and recognise natural wastage in imported raw materials.
It said key inputs such as China clay and ball clay contain 30-35 per cent moisture, with total wastage reaching around 40 per cent after processing.
The association proposed allowing a 35 per cent weight deduction for duty calculation and setting a uniform 5.0 per cent import duty on key materials, including talc, printing ink, and nano chemicals. It also called for removal of regulatory and supplementary duties on certain items. The Bangladesh Cement Manufacturers Association (BCMA) proposed cutting Advance Income Tax (AIT) from 2.0-5.0 per cent at import and 2.0 per cent at sales to 0.5 per cent.
It also suggested reducing advance tax on key inputs to 1.0 per cent, fixing customs duty on cement clinkers at Tk 500 per tonne, and scrapping the 10 per cent supplementary duty on limestone. BCMA President Mohammed Amirul Haque also recommended introducing a tariff-based VAT system with a uniform rate per tonne to reduce valuation disputes and improve revenue collection.
The Bangladesh Land Developers Association proposed land valuation based on on-site measurements, arguing that current methods lead to excessive capital gains tax.
Secretary AKM Nowsherul Alam said tax could be simplified by determining it based on document value at a 3.0 per cent rate.
The Bangladesh Association of Pharmaceutical Industries sought policy support ahead of the country's graduation from LDC status, while the Bangladesh Tanners Association called for lower duties on imported chemicals.
Other groups -- including associations representing construction, tea trading, food importers, footwear and leather goods exporters, plastic and rubber shoe merchants, stone processors, and footwear manufacturers -- also submitted their proposals.
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