NBR chair vows to remove agro-business barriers, rules out tax cuts
Agro sector businesses proposed tax exemption on agro-products, duty removal on bottled water
National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday (7 April) assured businesspeople in the agriculture sector that their concerns will be addressed, urging them to focus on problems rather than demanding tax cuts.
Speaking at a pre-budget discussion at the NBR office in Agargaon, he said, "Your demand is to reduce taxes, while our responsibility is to increase revenue. Rational coordination is needed, but revenue collection remains essential for the country."
He warned that reducing taxes often leads to endless demands for further cuts and subsidies, noting that "even zero tax does not satisfy anyone" and that tax reductions do not automatically boost compliance.
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Agro industry pushes tax exemption at source
The Bangladesh Agro Processors Association has proposed a tax exemption at source for agricultural products and urged the withdrawal of supplementary duty on mineral water up to 3 litres, stressing that safe drinking water is an essential commodity, not a luxury.
NBR Chairman Abdur Rahman assured that the board will address these concerns.
Meanwhile, the Bangladesh Poultry Industries Association has requested turnover tax reductions and easier adjustments of Advance Income Tax (AIT) on imports.
The NBR chief acknowledged pressures to set turnover tax at 2.5%, saying reductions are difficult but being considered.
Feed Industries Association Bangladesh highlighted that 70–80% of poultry feed costs come from raw feed materials and requested incentives to prevent price hikes.
Agriculture Machinery Manufacturers Association-Bangladesh proposed simplifying SRO descriptions for threshers, harvesters, and rice transplanters to ease VAT determinations.
Agro-Chemical Manufacturers, Fertiliser, Crop Protection & Fruit Importers Associations proposed various duty and tax exemptions on raw materials, pesticides, bio-rodenticides, fruit bags, sticky traps, and protective equipment to support local production and exports.
The proposals reflect a broad push from the agriculture sector to reduce fiscal burdens and promote accessibility, safety, and local production
Concerns raised over delayed VAT refunds
A pre-budget discussion meeting, traders raised concerns over delayed VAT refunds.
In response, the NBR Chairman said that with the launch of the online system, VAT refunds have started to be processed.
He added, "The income tax system is also almost complete; it is currently in trial runs. Once these are fully operational, we will refund you directly to your bank accounts. Currently, we have temporarily withheld refunds to enforce discipline, but ultimately, you will receive them."
Other participants included the Bangladesh Agro Feed Ingredients Importers and Traders Association, Shrimp and Hatchery Association of Bangladesh, and Animal Health Companies Association of Bangladesh.
