Stop seeking tax exemptions: NBR Chairman urges businesses

Tax revenue is the most sustainable source of income for countries to finance the Sustainable Development Goals, reducing the need for international assistance. Credit- UNDP Guatemala

Dhaka, Jan 26 -The chairman of the National Board of Revenue (NBR), Md Abdur Rahman Khan, has called on businesses to abandon their reliance on tax exemptions, urging them instead to focus on sustainable growth through competition.

“There is a mindset among many businesspeople that business cannot thrive without tax or VAT exemptions. They need to move away from this attitude,” Khan said while addressing the World Customs Day program on Sunday. The event was held at the Multipurpose Hall of the NBR, with Finance Adviser Dr. Salehuddin Ahmed as the chief guest.

Khan raised a critical question about the success of developed countries, where businesses grow without the heavy reliance on tax or VAT exemptions.

“Please calculate your business accounts, including VAT and tax. If the numbers make sense, then go ahead with that business. If not, don’t pursue it,” he advised, emphasizing the importance of sound financial planning over dependence on government incentives. 

The NBR chief also pointed to governance issues as a major hurdle in fostering fair competition and growth across industries. “In my personal opinion, the main problem is governance. We cannot open various sectors for all businesses,” he remarked. 

He stressed that opening up more sectors to competition would benefit the economy and ensure fairness. “Many industries are controlled by a small group of players who block new entrants. We need to address this. If we can ensure open competition, these issues will correct themselves automatically,” he added. - UNB