FICCI calls for clear tax roadmap to boost investment, jobs

The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has called for a clear roadmap to optimise the effective tax rate, aiming to create a level playing field for all investors and support job creation.

The chamber made the demands yesterday during a pre-budget meeting with the National Board of Revenue (NBR) at its headquarters in Dhaka.

FICCI also urged reintroducing reduced corporate tax rate for unlisted companies on the condition of them going cashless.

The chamber proposed a five-year phased move to a fully cashless system to improve transparency, reduce disputes, and lower compliance costs and the effective tax rate.

It also called for a gradual reduction of withholding and minimum taxes, highlighting that these often apply regardless of profitability, and suggested eventually phasing out certain triggers to better match taxes with actual income.

For individuals, FICCI recommended raising the tax-free threshold and adjusting lower tax brackets to ease the burden on salaried and middle-income groups, supporting consumption and economic growth.

The chamber also urged simplifying the Authorized Economic Operator (AEO) programme and introducing clear, tangible benefits to encourage participation.

FICCI stressed that tax expenditure policies should align with national priorities and that all exemptions should have a sunset clause.

It also recommended setting clear performance evaluation criteria, with annual reviews to assess effectiveness.

“We are facing a period of global disruptions and domestic pressures, forcing businesses to constantly adapt,” said Rupali Haque Chowdhury, president of FICCI, highlighting the growing strain on both local and foreign investors.

She stressed that Bangladesh’s next stage of growth depends on the government’s ability to implement clear, consistent, and forward-looking reforms, especially in taxation and regulations.

“A competitive and predictable business environment is essential to attract and sustain long-term investment,” she said, adding that policy stability remains a major concern for investors in the country.

Calling for stronger public-private cooperation, Chowdhury said reforms must be inclusive. “The government and private sector cannot do this alone -- we must move forward together,” she said.

At the event, NBR Chairman Md Abdur Rahman Khan told the chamber that the focus would be on improving the business environment through better efficiency, rather than cutting tax rates immediately.

“It is very difficult for us to reduce taxes as we face significant pressure,” he said. “We know the burden feels high, but it is not just about responsibility -- it mostly comes from our operational inefficiencies.”

“The key question is how to make the system more efficient, especially by using technology. We welcome your ideas so we can progress together,” he added.

Khan also said the corporate tax system will go fully online next year, aiming to solve many issues businesses now face, especially in dealing with tax offices.