The SME Foundation has submitted a comprehensive 56-point recommendation to the National Board of Revenue (NBR), advocating for distinct tax, duty, and tariff structures for small and medium enterprises (SMEs) in the upcoming budget. These proposals include the establishment of preferential tax regimes or clusters to provide SMEs with lower tax rates and simplified taxation processes. The aim is to create a supportive environment for SMEs, stimulate their growth, and enhance government revenue.
With approximately 78 lakh micro, small, and medium-sized industries and 2.1 crore individuals employed in the sector, the development of SMEs is crucial for achieving Sustainable Development Goals by 2030 and transforming Bangladesh into a developed nation by 2041. The proposal encompasses recommendations on income tax, VAT, and customs, emphasizing logical definitions for different categories of SMEs, lower tax rates, exemptions, and simplified procedures. By implementing these measures, Bangladesh aims to enhance the contribution of the SME sector to its economy, aligning with its SME policy target of reaching a 32% contribution by 2024.
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