MCCI calls for ‘pro-business, not punitive’ nat’l budget
The Metropolitan Chamber of Commerce and Industry (MCCI) on Saturday urged the National Board of Revenue (NBR) to design the upcoming national budget as a supportive framework for businesses rather than an added burden, as local industries grapple with high borrowing costs and an ongoing dollar shortage.
MCCI President Kamran T Rahman submitted the chamber’s pre-budget recommendations to NBR Chairman Abdur Rahman Khan during a meeting at the NBR office in the capital.
Highlighting that MCCI members contribute nearly half of the country’s total tax revenue, Kamran reaffirmed the chamber’s commitment to partnering with the NBR to build a transparent and investment-friendly tax system.
“At a time when interest rates hover between 12 percent and 14percent and dollar scarcity is inflating import costs, small and medium enterprises are under significant pressure,” he said, stressing that the next budget should focus on easing, not increasing, business burdens.
Key proposals
On expanding the tax base, Kamran noted that although more than one crore taxpayers hold e-TINs, fewer than half submit returns regularly—an issue the chamber considers a major structural gap.
Given that about 90 percent of the economy operates informally, MCCI proposed a nominal tax between Tk100 and Tk1,000 alongside a simplified one-page mobile-based return system to bring more people into the tax net and reduce evasion.
Regarding the effective tax burden, the chamber pointed out that advance income tax (AIT), tax deducted at source (TDS), and regulatory constraints often raise the real tax rate for businesses to 40–50percent, far exceeding official rates. It recommended lowering corporate tax rates and shifting toward income-based rather than turnover-based taxation.
For tax system modernisation, MCCI suggested integrating income tax, VAT, and customs into a single taxpayer platform, streamlining VAT rates, automating input tax credits, and introducing virtual hearings across all stages of tax assessment and appeals to enhance efficiency and reduce costs.
On the Primary Source Rule (PSR), the chamber said the current requirement across 39 categories complicates compliance and hinders ease of doing business. It proposed simplifying and digitising the system to make it more practical and consistent.
Addressing taxation of high-income individuals, MCCI warned that increasing rates could discourage compliance and trigger capital outflows. Instead, it argued for broadening the tax base as a more sustainable way to raise revenue.
To support SMEs, the chamber called for a dedicated tax framework with lower turnover taxes, access to input tax credits, and reduced VAT and duties on raw materials to cut production costs and enhance competitiveness.
Kamran also welcomed ongoing reform efforts by the NBR under the new government and called for clarity on the broader reform agenda, including the future of the Revenue Policy and Revenue Management Ordinance 2025, which lapsed without being enacted.
He emphasised that separating policy formulation from revenue administration would improve transparency, accountability, and predictability.
He concluded by expressing optimism that, under the prime minister’s leadership and with guidance from the finance minister, the government will introduce a growth-oriented tax policy that both increases revenue and supports business expansion and job creation.
