UK seeks a consistent tax policy in Bangladesh

The United Kingdom, one of Bangladesh's largest trading partners, seeks a consistent and predictable tax regime in the South Asian country to foster a transparent and healthy business environment.

British High Commissioner to Bangladesh Sarah Cooke made this request during a meeting with National Board of Revenue Chairman Abdur Rahman Khan, according to sources at the NBR.

"The high commissioner requested Bangladesh to adopt a consistent policy on income tax, value-added tax (VAT), and customs," a senior NBR official who attended the meeting at the NBR headquarters in the capital on Wednesday (16 October) told The Business Standard on the condition of anonymity.

The official also mentioned that the British high commissioner-led delegation discussed issues related to their investors' interests.

Sources also indicated that London expressed interest in assisting Dhaka in enhancing internal resource mobilisation sustainably. They met with the NBR chief to seek a green signal for moving forward in this regard.

"In this context, the NBR chairman requested their assistance with digitization. Currently, the European Union, Asian Development Bank, World Bank, and International Monetary Fund are working with Bangladesh to enhance resource mobilization. We, therefore, emphasised the importance of unique cooperation of this kind," the official said.

He added, "A delegation from the UK is expected to meet with us next week, along with experts, to discuss further enhancements."

According to the Trade and Investment Factsheet from the UK's Department for Business and Trade, the outward stock of foreign direct investment (FDI) from the UK in Bangladesh was £816 million in 2021.

The UK is the third-largest export destination for Bangladeshi goods, with shipments amounting to $5.31 billion in FY23, according to the Export Promotion Bureau in Dhaka.