Bangladesh needs to increase tax GDP ratio to 22%: FICCI

The Foreign Investors' Chamber of Commerce and Industry (FICCI) has said that Bangladesh needs to increase the tax GDP ratio to 22 percent to achieve the Vision 2041.

FICCI presented their proposal for preparing the National Budget 2024-255 at a pre-budget meeting organized by the National Board of Revenue (NBR) on Wednesday, reports BSS.

FICCI President Zaved Akhtar led the delegation including Board of Director Mohammad Iqbal Chowdhury, Executive Director T.I.M. Nurul Kabir and the committee members attended the Pre-budget discussion at the NBR office in capital's Agargaon, said a press release.

Abu Hena Md. Rahmatul Muneem, Chairman of NBR, presided over the meeting while some other members were also present.

FICCI Tax Consultant Snehasish Barua made a presentation on the chamber's budget proposals for FY 2024-25.

In the consultation with NBR, FICCI President Zaved Akhtar said that FICCI, being the representative of around 210 foreign companies operating in Bangladesh, has been contributing more than 30 percent of total government revenue.

"To achieve Vision 2041, Bangladesh needs to improve its Tax GDP Ratio from current 8.74 percent to 22 percent which is a big milestone. To achieve this target, the private sector's cooperation will be indispensable," he added.

Javed said FICCI is eager to partner in this journey and committed to contribute for the progress of the people and the country.

He said the FICCI identified the need for a comprehensive and Integrated Digital Architecture for the country to track the economic transaction and attract due to taxes from the taxpayer.

FICCI also highlighted the immediate action to integrate already available systems such as E-TDS, Online Return, E-TIN etc, he added.

Regarding digitalization and integrated automation system, the FICCI President appreciated some initiatives taken by the revenue board to digitalize the regular Tax related work.

However, he also highlighted the need for simplification of Taxation Systems and elimination of manual process to ease the compliance and reporting.

As a result, the country's revenue will be increased.

During the meeting to enhance the Tax Net, FICCI proposed immediate integration with all the govt agencies including City Corporation, Land Registration etc through which the country can bring more taxpayers in to tax net.

FICCI shared its recent research report "Catalyzing Greater FDI for Vision 2041: Priorities for building a conducive Tax System in Bangladesh" with NBR to facilitate the ongoing transformation in the Taxation System.

The FICCI President also highlighted some recommendations from the report at the meeting such as Collaboration with FICCI to work towards and integrated system that enables internal revenue mobilization, Optimize effective tax rate to enable greater FDI attraction competitiveness, Simplification of Tax (Reduction of TDS and withdrawal of minimum tax) by focusing on tax on income, Unified VAT rate and apply this on value addition only and Ensuring faster resolution of import and exports.