Business leaders have cautioned against raising tax rates for high-income earners, warning that such measures could accelerate capital flight and weaken tax compliance in Bangladesh.
Speaking at a pre-budget discussion organised by the National Board of Revenue at NBR Bhaban in Agargaon, Dhaka, MCCI President Kamran T Rahman said increasing tax rates could discourage honest taxpayers and undermine confidence in the system.
He highlighted that although more than 10 million Taxpayer Identification Numbers (TINs) have been issued, fewer than half of registered taxpayers are currently filing returns—describing it as a structural weakness in the country’s tax framework. Rahman argued that expanding the tax base, rather than raising rates, would be a more effective approach to boosting revenue.
MCCI Director Hasan Mahmood echoed similar concerns, calling for a 2.5% reduction in corporate tax rates and the removal of minimum tax provisions to stimulate business activity and investment.
At the same session, the Women Entrepreneurs Association of Bangladesh proposed targeted incentives to support women-led businesses. Its president Nasreen Fatema Awal called for a 3–5 year tax holiday and enhanced training programmes to improve tax compliance and financial literacy among women entrepreneurs.
Responding to the proposals, Md Abdur Rahman Khan assured participants that their recommendations would be considered in the upcoming budget. He also suggested introducing a simplified fixed VAT system for women entrepreneurs to reduce compliance burdens.
The discussion reflects growing calls from the business community for a more balanced and growth-oriented tax policy, aimed at widening the tax net, encouraging compliance and supporting entrepreneurship without placing additional pressure on existing taxpayers.
