Businesspeople and analysts caution against Bangladesh’s high effective tax rate, fearing it will deter investors and lead to capital flight. Despite corporate tax cuts, new minimum taxes and withholding levies, notably on imports, increase taxpayers’ burden. They argue that compliant firms bear the brunt, while a privileged few can legalize illicit funds at a lower rate. Concerns persist over the long-term consequences, although the short-term gains are acknowledged. Exemption extensions for the IT sector are welcomed. The budget receives mixed reviews: while praised for a smaller development budget potentially curbing inflation, criticism arises for neglecting a favorable business climate. Changes in the Finance Bill aim to enhance tax collection, notably through prospective taxation, fostering predictability. Calls for holding NBR officials accountable for harassing businessmen are voiced. Former NBR members and the Chittagong Stock Exchange President weigh in.
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