The National Board of Revenue (NBR) is set to reduce tax exemptions significantly in the next national budget for the 2025-26 fiscal year, its chairman, Md Abdur Rahman Khan, announced on Wednesday.

Speaking at a pre-budget meeting at the NBR Conference Room, he stated that a substantial number of exemptions have already been withdrawn, with more reductions to be introduced in the upcoming budget.

Representatives from BEZA, BIDA, BERC, BUILD, Bangladesh Hi-Tech Park Authority, Bangladesh-India Chambers of Commerce, WEND, and AmCham attended the discussion.

Rahman Khan emphasized the need for businesses and individuals benefiting from reduced tax rates to contribute more. “We can provide support for a limited time, but one must eventually pay taxes at the regular rate,” he said.

He cited research indicating that the revenue lost due to exemptions equals the amount currently collected in taxes, creating financial pressure on the government. As a result, tax benefits will be withdrawn gradually, and NBR will intensify efforts to ensure proper tax and VAT payments.

Bangladesh has historically offered tax exemptions to attract investment, promote industrialization, and support key sectors such as agriculture, ICT, and export-driven industries. However, concerns persist that many of these benefits remain with businesses rather than reaching consumers.