NBR Doubles Corporate Tax for Appliance Makers to 20%

In the past five months, Bangladesh has faced a revenue deficit of 420 billion Taka, as reported by the Chief Advisor's Press Secretary, Shafiqul Alam. He emphasized the need to increase the tax-to-GDP ratio for the benefit of the general population.

Bangladesh's National Board of Revenue (NBR) has raised value-added tax (VAT) and supplementary duty (SD) on a wide range of goods and services despite concerns about inflation and its impact on economic activities.

The National Board of Revenue (NBR) has doubled the corporate income tax rate to 20 percent for manufacturers of freezers, refrigerators, motorcycles, air conditioners, and compressors, starting from the fiscal year 2025-26. According to a notification issued today, these revised tax rates will be in effect until June 30, 2032.

Bangladesh's National Board of Revenue (NBR) plans to raise VAT rates on 43 goods and services, including dining out, sweets, clothing, and tissue paper, from 5-7.5% to 15%. This move, intended to boost revenue and comply with IMF conditions, also includes significant increases in excise duties on air travel, generating an additional Tk 12,000 crore.

Bangladesh's revenue collection fell in November, reaching Tk 25,360 crore, an 8.95% decline compared to the previous year. This follows a 2.62% year-on-year decrease to Tk 130,185 crore in the July-November period of FY25.

Over 1 million income tax returns have been filed online for the 2024-25 assessment year, with over 1.6 million registrations for e-Return submission, the NBR reported. Taxpayers can file returns, download receipts, tax certificates, and TIN certificates via the NBR website. Payments are accepted through internet banking, debit/credit cards, and mobile banking.