Published: 07:37 AM, 21 April 2026
Government to cut turnover tax on gross receipts to 0.3 percent from 1 percent: MCCI
The Metropolitan Chamber of Commerce and Industry (MCCI) on Sunday urged the government to cut turnover tax on gross receipts to 0.3 percent from 1 percent, saying the existing regime burdens businesses and distorts the tax framework.
The chamber pointed to mismatches between tax deducted at source (TDS), taxes on gross receipts and final corporate tax liabilities, which it said raise compliance costs, strain cash flow and risk double taxation.
“To remove these distortions, tax rates across different stages need to be rationalised and aligned with business realities,” MCCI said. The proposal was placed at a pre-budget seminar in Dhaka for fiscal year 2026-27, jointly organised by MCCI and the Economic Reporters Forum. In the seminar, Kamran T. Rahman, MCCI president, presented a comprehensive series of recommendations for the upcoming fiscal year 2024-25, calling for a decisive transition from a punitive tax approach to a supportive and growth-oriented fiscal framework.
He underscored the necessity of a balanced and realistic policy to stimulate investment and employment. He also sought the continued cooperation of the media, expressing gratitude for the professional role journalists play in highlighting the critical challenges facing the private sector.
To bolster revenue collection and broaden the tax base, the MCCI president recommended the full integration of the National ID (NID) and Taxpayer Identification Number (TIN) databases. Citing a significant discrepancy, he pointed out that while the country has over 10 million TIN holders, less than half currently file tax returns.
MCCI President Kamran T Rahman noted that businesses are currently operating under significant pressure due to high inflation, elevated interest rates, and foreign exchange constraints. He observed that small and medium enterprises have been particularly affected by these conditions.
To address this, he suggested specific measures intended to remove the fear associated with entering the tax net, including introduction of a nominal annual tax of Tk 100 or Tk 1,000 for new taxpayers to encourage registration and development of a simplified mobile application for hassle-free return filing.
He urged a supportive budget to lower business costs, encourage investment and restore private sector confidence, stressing the need for coordinated policy action to stabilise the economy and sustain growth.
Key Tax Reform Proposals
MCCI proposed a series of adjustments across different segments of taxation aimed at easing pressure on businesses, particularly exporters, importers, and domestic suppliers. It recommended reducing TDS on export proceeds from the existing level to 0.50 per cent.
, citing the need to strengthen export competitiveness in an increasingly uncertain global trade environment. The chamber noted that advance tax deductions reduce liquidity and restrict exporters’ working capital, thereby affecting operational flexibility.
At the import stage, MCCI suggested lowering tax collection at source (TCS) from 5 per cent to 3 per cent, particularly on raw materials and capital machinery, to reduce production costs and encourage industrial investment.
For domestic transactions, it proposed a flexible TDS structure within a 1–3 per cent range depending on the nature and risk profile of the transaction. It also recommended fixing TDS on packing materials at 3 per cent to provide greater clarity and consistency in application.
In addition, MCCI stressed the need to address long-standing refund complications by issuing “No TDS” certificates until refundable amounts are fully adjusted, thereby improving liquidity management and reducing procedural delays.
