Predictable policies key to economic confidence
American Chamber of Commerce in Bangladesh has called for sweeping reforms to Bangladesh’s tax framework, emphasising predictability, transparency and digitalisation to boost investor confidence and economic growth.
The recommendations were presented at a consultation session with National Board of Revenue Chairman Md Abdur Rahman Khan by AmCham representatives led by President Syed Ershad Ahmed and business leaders from major multinational firms on Sunday.
The proposals focus on key legislations, including the Income Tax Act 2023, the Value Added Tax and Supplementary Duties Act 2012, and the Customs Act 2023, alongside broader policy reforms.
AmCham stressed simplifying procedures, including easing certification requirements under Double Taxation Avoidance Agreements and introducing standardised foreign currency conversion methods aligned with global practices. It also recommended rationalising withholding tax rates to reduce inconsistencies.
To ensure a level playing field, the chamber proposed maintaining a uniform 37.5% tax rate for both foreign and local commercial banks, while introducing competitive tax regimes for Offshore Banking Units to attract foreign direct investment.
Highlighting sector-specific concerns, AmCham noted that carbonated beverages face a tax burden of near 54%, significantly higher than regional peers. It proposed reducing supplementary duty from 30% to 15% to improve affordability, revive investment and support employment.
The chamber also underscored the need for digital transformation, including incentives for electronic payments, reduced duties on smart cards and POS machines, and a fully digital, time-bound tax refund system.
It said such reforms would create a more transparent, competitive and growth-oriented economic environment.
