AmCham calls for tax reforms in budget recommendations

The American Chamber of Commerce in Bangladesh (AmCham) has presented its budget recommendations to NBR Chairman Md Abdur Rahman Khan for the fiscal year 2025-26, focusing on tax reforms and business-friendly policies.

An AmCham delegation led by Syed Mohammad Kamal, country manager of MasterCard and member of AmCham's Research and Policy Advocacy Subcommittee, handed over the budget recommendations to National Board of Revenue (NBR) today (5 March).

Reza-Ur-Rahman Mahmud, managing director of Philip Morris Bangladesh, laid out the paper presentation details during the handover ceremony.

In the budget recommendations, AmCham urged the withdrawal of NBR's No Objection Certificate (NOC) requirement and sought clarification on the scope of tax waivers.

A proposal has been made by AmCham to adjust withholding tax rates under Rule 5 of WHT Rules 2023, ensuring fair deductions for contractors and sub-contractors.

The Chamber also recommended waiving the mandatory submission of income tax return slips for credit card issuance up to Tk5 Lakh.

AmCham further proposed preferential tax rates for Offshore Banking Units (OBUs), similar to other Asia-Pacific countries, to boost investment.

AmCham called for the exclusion of TDS on imports under Section 120 and the reduction of exporter tax rates from 1% to 0.5% under Section 123.

They have also recommended a 0.6% minimum tax rate on carbonated beverages and a reduction of supplementary duty from 30% to 15%.

According to the recommendations, VAT exemptions should include recycled cotton fiber and its raw materials to support sustainable industries.

AmCham also sought formal recognition of critical healthcare-related sectors with a reduced VAT rate.