Cut corporate tax to sustain growth, says Japan-Bangladesh Chamber 

Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) today urged the government to reduce corporate tax rates and broaden the tax base to support investment and improve compliance.

Bangladesh should reduce the corporate tax rate to 20 percent from 25 percent to stay competitive with regional economies like Vietnam, India, and Indonesia, which attract investment through favourable tax policies, said Tarek Rafi Bhuiyan Jun, president of JBCCI.

Lower corporate tax would spur industrial expansion, create jobs, and boost long-term revenue through increased economic activity, he said at a press conference at Ascott The Residence Dhaka.

The trade body urged the government to restore the 15 percent corporate tax rate for the textile sector, which was raised to 25 percent in 2025, saying the higher rate could hurt export competitiveness and business sustainability.

Instead of placing additional pressure on existing taxpayers, the JBCCI president stressed the need to expand the tax net by bringing previously untaxed sectors and individuals under the revenue system.

"The opportunity lies in expanding the tax base and modernising the revenue administration, rather than just increasing the burden on the existing compliant taxpayers," Bhuiyan said.

He called for the full digitisation of tax administration to improve transparency and efficiency, alongside measures to reduce the informal economy and strengthen compliance systems.

Simplifying VAT procedures and rationalising the rates of tax deducted at source would improve compliance and ease cash-flow pressures on small and medium-sized enterprises, he added.