Staff Correspondent

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan today hinted that the next national budget may witness a cut in tax exemption system.

"This time (in budget for 2025-26 fiscal) you will see some big examples. Already we've withdrawn some significant number of tax exemptions, you will see the rest in the next budget," he said.

The NBR chairman was speaking at a pre-budget meeting with BEZA, BIDA, ?î??à, Business Initiative Leading Development (BUILD), Bangladesh Hi-Tech Park Authority, Bangladesh India Chambers of Commerce, Women Entrepreneurs Network for Development Association (WEND) and American Chamber of Commerce in Bangladesh (AmCham) held at the NBR Conference Room.

Rahman said that the individuals and business entities which are paying reduced rate of taxes would have to pay a little bit more from the next budget.

"We can provide support for a limited time, this can't be done for the whole life, one should pay taxes at the regular rate," he said.

Rahman mentioned that this time the big target for the NBR is to streamline the tax system for those who have been enjoying tax exemptions for a long time.

Referring to a research, he said that the amount of tax that the government is getting right now is also the amount that the government is losing in the name of tax exemptions.

"We've to get rid of that, we're having huge pressure for this (tax exemption)," he said.

He said that the tax exemption will be withdrawn gradually.

The NBR chairman said that his organization would chase those who are not paying taxes and VAT properly.

In this connection, he said that it does not mean that the consumers get the benefits of the tax exemption directly.

"Rather a big portion of this tax exemptions remains with the business people, there is a widespread complaint regarding this matter although this should not be done," he said.

The government of Bangladesh, since its independence, announced a series of tax exemption measures at different times aimed at attracting both local and foreign investment, promoting industrialization, and fostering economic growth.

Under the policy, businesses in key sectors such as agriculture, information technology, renewable energy, and export-oriented industries get benefit from significant tax relief. Startups and small and medium enterprises (SMEs) are also set to receive exemptions designed to encourage entrepreneurship and job creation.

According to NBR, it introduced targeted tax benefits to stimulate growth in priority sectors. This move was expected to ease financial pressure on businesses and encourage long-term investment.

One of the key highlights of the policy is the extension of tax holidays for new industrial undertakings. Businesses in designated economic zones and hi-tech parks will enjoy tax exemptions for up to 10 years, depending on their investment size and industry type. Export-oriented businesses will also benefit from reduced corporate tax rates, designed to enhance the country's competitiveness in global markets.