- A sharp divide exists between the government’s focus on revenue collection and the private sector’s call for VAT and tax relief, dominating pre-budget talks for 2026–27.
- Business leaders from key service sectors argued that high VAT rates, advance income tax, and rising costs are hurting growth and compliance.
- The NBR chairman acknowledged VAT collection weaknesses but insisted on improving compliance and expanding the tax base before considering tax cuts.
- Hotel industry representatives demanded lower VAT and advance income tax, citing business challenges, but the NBR chairman maintained VAT is a consumer tax and highlighted compliance gaps.
- The NBR announced upcoming reforms to simplify compliance, including mandatory online VAT returns and risk-based audits, while the informal economy and administrative inefficiencies were also discussed.
Source: newagebd.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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