Enhancing NBR Efficiency Crucial for Business Growth

Finance Adviser Dr. Salehuddin Ahmed emphasized the importance of improving the efficiency of the National Board of Revenue (NBR) to support business growth in Bangladesh. He also stressed the need to enhance the competitiveness of local businesses in preparation for the country’s upcoming LDC graduation, particularly by maintaining labor and environmental standards.

Dr. Ahmed made these remarks as the chief guest at a seminar titled "Reforms in Customs, Income Tax, and VAT Management to Address LDC Graduation Challenges" at the NEC Conference Room in Sher-e-Bangla Nagar, Dhaka. The event was organized by the Economic Relations Division’s Support to Sustainable Graduation Project (SSGP), with Commerce Adviser Sk. Bashir Uddin, NBR Chairman Md. Abdur Rahman Khan, and ERD Secretary Md. Shahriar Kader Siddiky also attending.

In his address, Dr. Ahmed called on the private sector to take a proactive role in tackling the challenges associated with LDC graduation. He underscored the need for effective implementation of the recently finalized Smooth Transition Strategy (STS).

Commerce Adviser Sk. Bashir Uddin highlighted the importance of enhancing the efficiency of local businesses to meet the challenges of LDC graduation. He also suggested bringing small and medium enterprises into the VAT system and introducing a uniform tax rate.

NBR Chairman Md. Abdur Rahman Khan focused on reducing tax expenditures and informed the audience that the National Single Window (NSW) would be fully operational by next March, with the entire tax system set to be automated soon.

ERD Secretary Md. Shahriar Kader Siddiky reiterated the government’s commitment to implementing the STS and mentioned that further stakeholder consultations would be held to ensure its successful execution.

During the event, private sector representatives called for a delay in LDC graduation, arguing that a few more years would give Bangladesh adequate time to prepare.

Dr. Mostafa Abid Khan, former Member of the Bangladesh Trade and Tariff Commission and Component Manager of SSGP, presented the keynote. Referring to the World Bank’s World Development Indicators 2023, Dr. Khan pointed out that Bangladesh’s import and export costs were significantly higher than those of India, Malaysia, Vietnam, and Singapore. He also noted that reducing customs clearance time by just one day could increase exports by 7.4% and boost domestic product competitiveness by 5%.

The seminar was attended by senior government officials, trade association representatives, and experts from various institutions.

As Bangladesh is set to graduate from LDC status on November 24, 2026, it faces the challenge of losing access to key international support measures, including duty-free, quota-free access to major export markets. The STS outlines actions to boost trade competitiveness, such as enhancing revenue mobilization, implementing the National Tariff Policy, and improving customs and port efficiency.