Surcharge-Free Net Wealth Threshold May Increase

Revenue collection in Bangladesh declined by 6% year-on-year in the first quarter of FY25, reaching Tk 70,903 crore, significantly below the target of Tk 96,500 crore. The shortfall was driven by economic uncertainties amid political unrest, contractionary monetary policy, and reduced imports.

The government has reduced the import duty on eggs from 30% to 13% and lowered the duty on edible oil by 5%. It has also eliminated value-added tax (VAT) on edible oil at the production and distribution levels to help stabilize prices of essential commodities. These actions respond to rising prices and follow requests from oil refiners for tax waivers to mitigate increasing global prices for soybean and palm oil. Meanwhile, egg prices have surged amid supply shortages, prompting the government to approve the import of 4.5 crore eggs to alleviate the crisis.

The National Board of Revenue (NBR) has cut the import duty on sugar from 30% to 15% to help reduce prices in the local market. As a result, the cost of importing raw sugar will drop by Tk 11.18 per kg, and refined sugar by Tk 14.26 per kg. Despite this, sugar prices in Dhaka have recently risen by 2%, now ranging from Tk 125 to Tk 135 per kg.

The National Board of Revenue (NBR) in Bangladesh is experiencing significant tax revenue losses due to complications in settling audit files resulting from the Income Tax Act-2023. The law has introduced procedural obstacles that make the audit resolution process time-consuming and costly.

The National Board of Revenue (NBR) reported that over 50,000 individual taxpayers filed their income tax returns online within a month of the relaunch of its user-friendly e-filing portal on September 9. Taxpayers can now conveniently pay their taxes using cards, internet banking, and mobile financial services, and they can also obtain copies of submitted returns, acknowledgment receipts, and print their Taxpayer Identification Number (TIN) online.

The National Board of Revenue (NBR) has established a seven-member taskforce to reform the income tax law in Bangladesh, aiming to create more people- and business-friendly regulations. Led by Tax Commissioner Ikhtiar Uddin Mohammad Mamun, the committee will analyze existing income tax laws, related rules, and statutory regulatory orders to propose necessary reforms.