In a recent meeting with leaders from major trade organisations, Finance Advisor Salehuddin Ahmed has committed to addressing the issues faced by traders regarding customs procedures in the upcoming budget for the fiscal year 2025-26. The meeting, attended by Finance Secretary Khairuzzaman Mozumder, National Board of Revenue (NBR) Chairman Abdur Rahman Khan, and other senior officials, aimed to gather insights from representatives of influential trade bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Following the discussions, Ahmed expressed a willingness to implement online transaction processes in a bid to alleviate bureaucratic harassment and reduce time delays. He acknowledged the importance of resolving existing customs-related problems.
BCI President Anwar-Ul-Alam Chowdhury Parvez noted the advisor’s proactive approach toward resolving income tax and NBR-related issues, highlighting a positive atmosphere during the discussions. However, he mentioned that there was no focus on banking sector challenges during the meeting.
The advisor emphasised the need to strengthen the tax system and enhance revenue collection, while Parvez raised concerns about the capacity of the garment sector. He also mentioned that issues related to the Bangladesh Bank should be formally documented for further review.
BKMEA President Mohammad Hatem expressed optimism for change regarding customs issues, praising the improved services at the Chattogram Customs House and thanking the finance ministry and NBR for their efforts.
During the meeting, BKMEA presented a written proposal advocating for a 50 per cent rate for the next five years, considering tax at source as the final tax collection. The proposal also called for income tax exemptions on garment export incentives, a more business-friendly taxation policy, and a separation of lawmakers from implementers to create a taxpayer-friendly income tax framework.
Additional requests from BKMEA included the withdrawal of 7.5 per cent VAT on jute used in the garment industry, a reduction of 15 per cent VAT on recycled fibre to 5 per cent, and a reconsideration of the 200 to 400 per cent fines imposed for errors in the HS code of imported products. They also proposed simplifying the HS code from 8 digits to 6, reinstating the previous 5 per cent VAT on energy-efficient lamps, and exempting solar panels and inverters over 10 kilowatts from all duties to promote renewable energy use. Furthermore, BKMEA called for the withdrawal of the 3 per cent tax on synthetic yarn and the removal of additional taxes on raw materials.
The discussions reflect a commitment from the finance ministry to support the growth and sustainability of Bangladesh’s vital garment sector while addressing the operational challenges faced by traders.
