National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has urged the Finance Adviser Dr Salehuddin Ahmed to trim the upcoming budget to offer some respite to the people.
"I have requested the Finance Adviser to cut short the budget size and provide relief to the masses," Khan stated during a pre-budget meeting with the Economic Reporters' Forum (ERF) at the Revenue Building on Monday (24 March).
He assured that the forthcoming national budget would be business-friendly, even though revenue losses might be incurred as a result.
However, he signalled that taxpayers currently enjoying reduced rates may have to start paying standard rates from the next fiscal year, a proposal the NBR plans to present to policymakers.
The NBR chairman acknowledged that tax evasion remains rampant in Bangladesh, with a negligible number of quality taxpayers contributing to national revenue.
To address this, the government has adopted an aggressive policy to increase tax collection and enhance operational efficiency in tackling evasion.
Regarding the Value Added Tax (VAT) system, Khan admitted that it was in a state of total disarray.
He emphasised that a proper implementation of input VAT credit and a standard VAT rate could significantly lower VAT burdens for many businesses.
"The VAT law, introduced in 2012, has been distorted over time and was amended in 2019 to address these distortions," he noted.
"The original accounting- and invoice-based VAT system was its key strength, but we have dismantled that. As a result, VAT revenue is stagnating. We must restore discipline in the VAT framework."
When asked about wealth tax, the NBR chief recalled that it was abolished in 1999, despite existing since 1963.
However, he hinted at a gradual shift away from wealth surcharges in favor of a structured wealth tax system.
"If we can digitise the tax system and establish a transparent valuation model for assets, it will reduce wealth inequality and serve as an additional revenue source," he explained.
He suggested that once a non-disputed valuation mechanism for land and buildings is established, the government might transition from the current wealth surcharge system to a full-fledged wealth tax regime.
Finance Adviser Salehuddin Ahmed, in response, assured that the 2025-26 national budget would be formulated with a rational approach, prioritising the needs of local businesses and the general public.
