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No VAT or income tax exemptions: NBR chairman
Govt aims to double revenue collection in next fiscal year
Daily Sun Report, Dhaka
Published: 08 Apr 2026, 12:00 AM
The government has set an ambitious target to double revenue collection in the upcoming fiscal year 2026-27 compared to the current fiscal year.
Officials say revenue must increase by at least 50%, implying a target of Tk4-6 lakh crore.
In this context, National Board of Revenue (NBR) Chairman Abdur Rahman Khan emphasised that there is no scope for broad exemptions in VAT or income tax.
However, the government is reviewing policies for the energy sector amid the ongoing global situation.
Speaking at a pre-budget discussion on Tuesday at the NBR building, the chairman welcomed representatives from various business associations and urged them to submit proposals that do not hinder revenue collection.
“While we want to reduce your VAT and taxes, if such benefits are given broadly to all, how will foreign loans be repaid and infrastructure developed?” he asked.
He added that businesses should report issues such as anti-dumping concerns or monopolistic practices resulting from legal gaps, and the NBR would address them.
Transport sector proposals
In the morning session, 10 transport-related associations participated. The NBR reiterated its support for reducing private car usage, increasing reliance on public transport, and banning LPG-powered motorcycles.
It also stated it does not favour reducing taxes on jet fuel.Amid rising global fuel prices and supply disruptions, motorcycle users have increasingly turned to LPG conversions. Manufacturers requested a favorable tax structure for LPG motorcycles, but the NBR rejected the proposal.
The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) proposed revising CC slabs and supplementary duties for hybrid vehicles and reclassifying plug-in hybrid vehicles as electric.
It also called for withdrawing supplementary duties on 10-13-seater Hiace-type microbuses used as public transport.
BARVIDA highlighted discrepancies in import duties for buses: currently 10% for 16-40-seat buses and 1% for 14-40-seat buses. They proposed a 5% duty for buses with 40 or more seats and 1% for the rest.
Petroleum dealers and distributors warned that restricting vehicles older than 25 years would disrupt tank lorry operations.
They requested duty-free import of chassis, and the NBR chairman assured them the matter would be reviewed.
Poultry sector concerns
In the afternoon session, 11 associations from the agriculture sector attended.
The Bangladesh Poultry Industries Association (BPIA) highlighted that both small and large investors are currently facing losses.
Small businesses often avoid VAT and taxes, while larger companies comply fully.
Corporate tax rates have risen from 15% to 27.5%, and the price of a 15-day-old chick has jumped from US$2.50 to $6.
Business leaders warned that such increases would push retail chicken prices extremely high.
The NBR chairman responded: “We will review your proposals. However, any benefits provided to large institutions must reach smaller businesses. There are complaints that advantages often fail to reach the grassroots level, and that must not happen.”