Businesses voiced strong grievances over harassment, irregularities, and inefficiencies caused by field-level officials of the National Board of Revenue during the Meet the Business event at the NBR headquarters on Wednesday.
The country鈥檚 top business leaders, trade body representatives, and participants raised concerns about the non-adjustment of advance income tax, the high turnover tax rate for small businesses, and harassment by customs and port officials during import and export activities.
However, business leaders also expressed gratitude to the NBR for several recent initiatives to ease business operations.
Responding to the concerns, NBR chairman Abdur Rahman Khan acknowledged the issues and stressed the need for regulatory reforms.
鈥榃e must amend certain rules to make day-to-day business operations easier,鈥� he added.
He also said that the new generation hopes no one would face discrimination.
鈥楾he businesses pay a portion of their hard-earned income, but often feel they are not receiving proper services or benefits in return,鈥� he added.聽
The NBR chief emphasised that the revenue authority seeks greater collaboration with commercial banks to facilitate taxpayers.
He clarified that this collaboration did not mean the NBR would monitor individual bank account details but will instead streamline processes for tax compliance.
The NBR would allow non-bonded exporters to release raw materials under bank guarantees.聽
鈥楩rozen fish exporters are also likely to be brought under bond facilities and bond automation will be introduced to reduce the frequency of annual audits,鈥� he added.聽
Corporate tax return submissions will move online later this year, while income tax practitioners will gain access to submit clients鈥� tax returns online starting next week, he added.聽
The NBR also introduced the Grievance Redress System to address taxpayer complaints and urged businesses to use the platform.
Referring to a recent case highlighted by the Bangladesh Knitwear Manufacturers and Exporters Association, the NBR chairman said that a mismatch in HS codes had caused an exporter difficulties in releasing bonded goods.
鈥榃e have issued a directive to release goods despite such errors. These issues will be resolved later through investigation,鈥� he explained.
The chairman also urged businesses to abandon the mindset of operating solely to obtain tax exemptions.
鈥楩or any tax exemption, we must evaluate the benefits for the country and its people, not just for individuals,鈥� he added, emphasising that VAT was initially designed as a reasonable and non-discriminatory tax measure.
Nasir Khan, general secretary of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh聽 criticised the treatment of the leather sector, saying it had been 鈥榢ept as a bonsai tree鈥� without growth opportunities.
鈥榃e face fake cases, and after years in court, we are eventually cleared 鈥� but the responsible officers are never held accountable,鈥� he said.
The hike in turnover tax is putting pressure on them even when the businesses are not making profits, he added.聽
The NBR chairman said plans were underway to track and evaluate field officers鈥� performance, ensuring accountability.
Priti Chakraborty, director of the Bangladesh Women Chamber of Commerce and Industry, highlighted another concern, noting that the previous provision allowing interest payments to be made within three years had been suspended in FY 2023.
A representative from a leading steel mill accused port authorities of deliberately transferring goods to inland container depots, creating additional costs and delays.
They also said that they aim to clear goods within three days of free time, but ports send goods to inland depots to benefit certain businesses, he alleged.
The NBR chairman urged businesses to actively engage with the newly introduced GRS platform.
鈥極ur main problem is that the custodians are eating away the plants,鈥� he said metaphorically, stressing the need for systemic reforms to protect businesses and enhance revenue collection.
