On March 5, 2025, the American Chamber of Commerce in Bangladesh (AmCham), led by Mr. Syed Mohammad Kamal, Country Manager of MasterCard Singapore Holding Pte. Ltd. and Member, Research and Policy Advocacy Subcommittee, AmCham, presented its budget recommendations for the fiscal year 2025-26 to the Chairman of the National Board of Revenue (NBR). The delegation, which included senior representatives from RBD Fibers Ltd., Medtronic Bangladesh Pvt. Ltd., American Life Insurance Company (MetLife), Citibank, N.A., Avery Dennison, Coca-Cola Bangladesh, and others, emphasized the need for TAX and VAT reforms and business-friendly policies to foster foreign investment and enhance economic growth in Bangladesh. Mr. Reza-Ur-Rahman Mahmud, the Managing Director of Philip Morris Bangladesh and a member of AmCham, presented the Budget Recommendation.
Key recommendations include:
- Withdrawal of NBR No Objection Certificate (NOC) requirement and clarification on tax waiver scopes.
- Adjusting withholding tax rates under Rule 5 of WHT Rules, 2023, for fair deductions on contractors and sub-contractors.
- Exemption from Income Tax Return submission for credit card issuance up to Taka 5 Lac.
- Preferential tax rates for Offshore Banking Units (OBUs) in Bangladesh, ranging from 0-20%, aligned with Asia-Pacific standards, to encourage investment.
- Exclusion of TDS on imports under Section 120 and reducing exporter tax rates from 1% to 0.5% under Section 123.
- A proposed 0.6% minimum tax rate on carbonated beverages and a reduction of supplementary duties from 30% to 15%.
- VAT exemptions for recycled cotton fiber and raw materials to support sustainable industries.
- Formal recognition of the healthcare sector as a distinct industry with a reduced VAT rate, supported by a Special Regulatory Order (SRO), due to the critical role these companies play in saving patients’ lives.
