The Dhaka Chamber of Commerce and Industry (DCCI) has urged the government of Bangladesh to implement a uniform single-digit VAT rate across the country in the upcoming FY26 budget.
According to DCCI, the current 15% VAT rate, along with varying rates across different sectors, has created unnecessary complexities and disputes for businesses, especially manufacturers. A single-digit VAT rate, they believe, would simplify the tax structure, reduce business costs, and promote ease of doing business in the country.
The DCCI’s call comes at a time when the Bangladeshi manufacturing sector is facing several challenges, including rising operational costs and global economic uncertainties. The chamber has emphasized that a uniform VAT system would not only improve the tax administration process but also attract more investments and enhance the competitiveness of local industries in the global market.
In addition to advocating for a single-digit VAT, the DCCI has also suggested other reforms to improve the country’s business environment.
These include introducing a 1% VAT rate for informal sector traders, making the tax filing process more automated, and simplifying customs duties. The chamber believes that these measures would foster a more supportive and transparent environment for businesses, ultimately helping the economy grow.
The DCCI’s proposals come at a critical juncture as the country aims to boost its manufacturing sector and address challenges related to tax administration, high business costs, and regulatory complexities.
The government’s response to these proposals will be crucial in determining the future trajectory of Bangladesh’s business climate and its ability to attract domestic and international investments.
