As Bangladesh faces mounting pressure to meet revenue targets under the International Monetary Fund (IMF) loan agreement, the government's pledge to reduce tariffs on American products may further strain its fiscal efforts, according to Md Abdur Rahman Khan, chairman of the National Board of Revenue (NBR).
Speaking at a pre-budget discussion in Dhaka held on Sunday, Abdur acknowledged that Bangladesh's tariff regime remains higher than those of its regional competitors.
"We have to rationalise our duty structure a bit, as we have made some commitments under the US Treasury system," he said. "Our collection will decrease there."
He also hinted at adjustments in the country's income tax policy, citing high rates of minimum tax and tax deduction at source.
"If we rationalise them, the collection will also decrease here," he said. "Then where will the collection increase? It is necessary to increase it as well. It is necessary to increase it to run the country."
The event, titled "Pre-Budget Discussion 2025-26: Private Sector Expectations," was organised by the Dhaka Chamber of Commerce and Industry in collaboration with the daily Samakal and Channel-24.
He also ruled out any across-the-board reduction in corporate tax rates in the upcoming budget, noting that sectors which are currently receiving tax exemption benefits will also see reductions.
"Our individual and corporate tax rates are comparatively quite low, so the tax in that sector will remain unchanged this year," he said. "The existing disparity in revenue rates, however, will be eliminated in the next budget."
He indicated that the exemptions will be reduced to bring everything to the same rate.
Under the IMF's $4.7 billion loan package, the NBR is tasked with raising an additional Tk 570 billion in the next fiscal year through new policy measures.
During a recent meeting with the IMF delegation, the agency reported it could only guarantee a collection of Tk 80 billion.
Adding to the challenges, the Trump administration has imposed supplemental duties on imports from over a hundred countries, including Bangladesh, which now faces an additional 37 percent duty on top of an existing average of 15 percent-raising the total tariff burden to 52 percent.
Although the additional duty was suspended for three months following a request by the interim government, an extra 10 percent duty remains in effect, bringing the total to 25 percent for now.
Mahbubur Rahman, president of the International Chamber of Commerce-Bangladesh, urged the government to initiate negotiations with the United States.
�"bdnews24.com
