SME Foundation’s Call for Separate Tax Structures

In 2023, tax evasion in Bangladesh reached Tk 226,236 crore, with corporate tax evasion alone accounting for approximately Tk 113,118 crore—about 50% of the total—according to a CPD study based on 103 listed companies.

The National Board of Revenue (NBR) of Bangladesh has declined the International Monetary Fund's (IMF) proposal to increase tax collection by an additional Tk 570 billion for the upcoming fiscal year. In a recent meeting, NBR officials conveyed that the current economic conditions are not conducive to imposing such a substantial tax burden.

Benapole, Bangladesh’s busiest land port, recorded a 13.19% revenue growth despite a decline in imports. For FY25, the customs house targeted Tk6,705 crore in revenue, with Tk4,453.31 crore expected in the first eight months.

The cost of SME financing surged to 12.12% in December 2024, up from 6.17% in June 2023, as Bangladesh Bank raised interest rates to combat inflation. Small and medium enterprises (SMEs), which contribute 32% of GDP and employ 85% of the industrial workforce, are facing severe financial strain.

The Centre for Policy Dialogue (CPD) warns that Bangladesh’s revenue shortfall may reach Tk 1.05 trillion in FY25, as revenue collection grew only 4.4% in July-December, making a 55% increase in the remaining period unrealistic.

The National Board of Revenue (NBR) has reduced the source tax on imported fresh fruits from 10% to 5%, as per a Statutory Regulatory Order (SRO) issued by the Income Tax Wing on Thursday. The tax applies to fresh or dried oranges, citrus fruits, grapes, lemons, apples, and pears.