Increasing efficiency of NBR essential for businesses growth: Salehuddin

According to Finance Adviser Dr. Salehuddin Ahmed, the expansion of the nation’s enterprises depends on the National Board of Revenue (NBR) becoming more efficient.

In view of the impending LDC graduation, he has also urged local firms to become more competitive by upholding labor and environmental regulations.

Speaking as the main guest at a seminar on “Reforms in Customs, Income Tax, and VAT Management to Address the LDC Graduation Challenges” that was conducted today at the NEC Conference Room in the city’s Sher-e-Bangla Nagar neighborhood, the finance adviser made this statement.

Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD) organized the event, said a press release. 

Commerce Adviser Sk. Bashir Uddin and Chairman of the National Board of Revenue Md. Abdur Rahman Khan were present as special guests. ERD Secretary Md. Shahriar Kader Siddiky chaired the event. 

The Finance Adviser, in his speech, also said that the private sector must be proactive alongside the government in meeting the LDC graduation challenges. He also emphasized on effective implementation of the recently finalized Smooth Transition Strategy (STS).

Commerce Adviser Sk. Bashir Uddin stressed on increasing the efficiency of the local businesses to face the potential challenges of LDC graduation.

At the same time, he also called for bringing the small and medium enterprises under the VAT net and introducing a uniform tax rate system.
 
Md. Abdur Rahman Khan, the chairman of the National Board of Revenue, stressed the importance of cutting back on tax spending.

Additionally, he announced that the entire tax system would soon be computerized and that the National Single Window would be fully functioning by March of next year.

According to ERD Secretary Md. Shahriar Kader Siddiky, the government is dedicated to making sure the Smooth Transition Strategy (STS) is implemented efficiently and on schedule.

For the STS to be implemented successfully, he added, a number more stakeholder consultations similar to this one would be planned.

Chairman of Chattogram Port Authority Rear Admiral S M Moniruzzaman, Members of NBR AKM Badiul Alam, Senior Vice President of Dhaka Chamber of Commerce & Industry Razeev H Chowdhury; and President of Bangladesh Freight Forwarders Association Kabir Ahmed spoke at the event as panelists.

Members of NBR Hossain Ahmed and Mohammad Belal Hossain Chowdhury as well as the Vice Chairman of the Export Promotion Bureau (EPB) Md. Anwar Hossain were also present at the seminar. 

Seminar participants from the private sector demanded that LDC graduation be postponed for a few years. They claimed that Bangladesh would have enough time to get ready for LDC graduation as a result.

Dr. Mostafa Abid Khan, a former member of the Bangladesh Trade and Tariff Commission (BTTC) and SSGP component manager, gave the event’s keynote address.

Dr. Khan cited the World Bank’s 2023 World Development Indicators report to highlight how much more expensive imports and exports are in Bangladesh than in countries like Singapore, Malaysia, Vietnam, and India.

The same World Bank study also found that the efficiency of customs clearance process, competence and quality of logistics services; as well as the quality of trade and transport related infrastructure in Bangladesh are relatively inferior compared to those countries.  

Highlighting the findings of various impact assessments carried out in recent times, Dr. Khan said that if the time for customs clearance at the local ports could be reduced by a day, the country’s overall exports would increase by 7.4 percent. He also pointed out that easing the customs procedures could boost the competitiveness of domestic products by at least 5 percent.

A. H. M. Jahangir, Project Director of SSGP and Additional Secretary of ERD, gave the event’s welcome speech.

It is noteworthy that on November 24, 2026, Bangladesh is expected to leave LDC status. The nation will progressively lose access to International Support Measures (ISMs) after LDC graduation, such as options to offer export subsidies and duty-free and quota-free market access in certain significant export markets.

In this regard, significant changes to the country’s income tax, VAT, and customs processes should increase its trade competitiveness.
 
The recently finalized STS has also outlined various priority actions related to increased revenue mobilization; timely implementation of National Tariff policy 2023; immediate rollout of the National Single Window (NSW); fulfilling commitments under the WTO Trade Facilitation Agreement; enhancing the capacity of land and seaports.
  
The importance of revenue mobilization as well as reforms in tax policy and customs clearance procedures have also been repeatedly emphasized in various studies, seminars, workshops and Focus Groups Discussions conducted by the Support to Sustainable Graduation Project of ERD in recent years.
 
The purpose of the seminar was to create a plan for putting the STS’s recommendations on income tax, VAT, and customs into practice. It also included workshops, FGDs, and other seminars pertaining to LDC graduation.

In addition to members from pertinent trade associations and think tanks, the event was attended by senior officials from government ministries, agencies, and research institutes.