AmCham urges simpler tax system, relaxed procedures to ease business. Here are its proposals for NBR

The American Chamber of Commerce in Bangladesh (AmCham) today (5 April) presented its budget recommendations to National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan, urging a simpler tax system and relaxed administrative procedures to ease the cost of doing business.

An AmCham delegation led by President Syed Ershad Ahmed handed over the budget recommendations to the NBR chairman.

Ershad said Bangladesh's revenue structure has not kept pace with the needs of a modern, investment-driven economy, noting that only about one-third of registered TIN holders currently file returns.

At the same time, nearly two-thirds of tax revenue comes from indirect taxes, indicating a heavy reliance on consumption-based taxation that places a relatively higher burden on ordinary citizens, he added.

Calling the issue one of fairness, competitiveness and sustainability, he said widening the direct tax base requires building trust, predictability and simplicity in the system.

Compliance cannot be enforced by complexity — it must be encouraged by clarity and confidence, he said, adding that taxpayers are more willing to participate when the system is transparent and stable.

In its proposals, AmCham emphasised the importance of policy predictability, saying investors need certainty in tax rates, clarity on incentives and confidence in long-term policy stability. It recommended introducing a structured framework for advance tax rulings to reduce uncertainty.

The chamber also called for rationalising the tax system by reducing overlapping taxes, addressing double taxation and revisiting minimum tax provisions to ease the cost of doing business and improve voluntary compliance.

Administrative reforms were highlighted as a priority, including simplifying procedures, reducing unnecessary certifications and strengthening VAT refund mechanisms to improve efficiency and transparency.

It also welcomed the planned separation of tax policy and administration.

AmCham underscored the role of digitalisation, recommending expansion of electronic payments, promotion of cashless transactions and investment in digital tax infrastructure to enhance compliance and reduce informality.

It further stressed the need for trade facilitation and customs modernisation, including digital clearance systems, transparent valuation and improved port operations to reduce business costs and strengthen competitiveness.

As Bangladesh prepares for LDC graduation, the chamber called for measures to support export sectors, including faster VAT refunds, more efficient supply chains and accelerated trade agreements.

AmCham also recommended strengthening the financial sector and capital market through supportive tax policies, incentives for SME lending and steps to attract foreign portfolio investment.

It highlighted the importance of investing in human capital and technology, including digital skills and stronger university – industry collaboration, to support long-term economic growth.

The chamber also called for incentives for renewable energy, energy-efficient technologies and green manufacturing to ensure sustainable industrial development.

AmCham said it is ready to work with the NBR through dialogue and practical solutions to support Bangladesh's continued economic growth.