The Dhaka Chamber of Commerce and Industry (DCCI) has emphasised the imperative need for tax reform to invigorate investment opportunities in Bangladesh.

The DCCI has underscored the importance of widening the tax net to boost the tax-GDP ratio in its budget recommendations to the National Board of Revenue (NBR) for the fiscal 2024-25.

In its proposals, the DCCI emphasised the necessity for the upcoming budget to prioritise easy and business-friendly tax management, including widening the tax and VAT net and implementing full automation of the taxation system.

Furthermore, the DCCI stressed the significance of encouraging local industrialisation and ensuring an investment-friendly environment across the country.

Ashraf Ahmed, President of the DCCI, presented the organisation's 40 budget recommendations for FY25 at a pre-budget meeting with the NBR held at the NBR headquarters in the capital on Wednesday.

NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting ahead of the national budget for FY25.

Among the key recommendations, Ahmed highlighted the need to amend Clause 70 for adjusting business loss from total income and proposed the removal of taxes on Provident Fund, Gratuity Fund, Superannuation Fund, and Pension Fund for private sector service holders.

To reduce borrowing costs for the private sector, Ahmed suggested the withdrawal of source tax imposed on instalments of foreign loans, which could potentially hinder inbound FDI inflow and credit flow.

Ahmed also advocated for an Integrated Tax Administration System (ITAS) akin to the Integrated VAT Administration System (IVAS) to automate taxation processes and attract more taxpayers. He proposed increasing the VAT-free annual turnover ceiling to accommodate inflation and removing restrictions on input VAT.

Moreover, Ahmed recommended withdrawing VAT deducted at source during the distribution of locally produced solar panels to encourage investment in the renewable energy sector.

The NBR chairman assured that the NBR is committed to formulating policies aimed at increasing revenue, curbing money laundering, promoting local industry development, and protecting the environment sustainably. He urged the business community to communicate their challenges to the NBR for appropriate action, emphasising the pivotal role of businesses in economic growth.

DCCI Senior Vice President Malik Talha Ismail Bari and Vice President Md Junaed Ibna Ali were also present during the meeting, demonstrating collective efforts to drive economic reforms and growth in Bangladesh.