Budget to simplify biz licences, approvals, tax services

The government is set to unveil a broad package of
deregulation measures in the upcoming national budget aimed at reducing the
cost of doing business by simplifying licensing procedures, modernising tax
administration and accelerating approvals to stimulate investment and job
creation.
According
to finance ministry officials, the reforms will introduce a system under which
businesses seeking new licences or expansion approvals will receive provisional
permission within seven days of application submission.
If
relevant authorities fail to issue final approval within the stipulated
timeframe, the licence will be deemed to have been granted automatically,
marking a major shift in regulatory practice.
The validity period of most business licences and permits
is also expected to be extended to five years under the proposed changes in the
fiscal 2026-27 budget, reducing the need for annual renewals.
Finance
Minister Amir Khosru Mahmud Choudhury's budget speech will feature a dedicated
chapter titled "Ease of Doing Business through Deregulation."
Officials
said the measures are designed to reduce delays, eliminate duplication of
documentation and streamline the overall approval process for both domestic and
foreign investors.
The
budget is expected to include a series of reforms to modernise tax
administration, including full automation of the National Board of Revenue and
its field offices.
Plans
include the introduction of online corporate tax return filing, year-round
submission facilities and incentives for early filing, while late filers may
face higher tax rates.
Tax
refunds will be credited directly to taxpayers' bank accounts, and broader
automation is expected to reduce administrative delays and harassment in the
tax system.
The
reforms will also include the introduction of a mobile application to support
electronic return filing and taxpayer services.
Move aligns with BNP's electoral
manifesto
The
deregulation initiative aligns with the ruling BNP administration's electoral
manifesto commitments to lower transaction costs and attract foreign direct
investment. To ensure accountability, the budget will announce the formation of
a joint government-private sector task force tasked with monitoring regulatory
reform.
Addressing
a recent seminar organised by the Economic Reporters Forum, the finance
minister sharply criticised bureaucratic bottlenecks, stating that public
officials routinely create unnecessary hurdles for enterprises.
He
clarified that while companies must apply for all required permits, they will
now do so through a single point of entry, with every state agency mandated to
respond within a strict deadline. The upcoming budget will formalise these
timelines while curbing the discretionary powers of National Board of Revenue
officials, said Khosru.
The
finance minister said, "If a business requires 15 to 20 permissions and
licences, business owners will obtain all of them. However, they will apply
through a single point, and all relevant authorities must issue every licence
and permission within a stipulated timeframe."
The
government will establish a "Digital Application Platform" to ensure
that investors can apply for and receive all types of licences, certificates, approvals,
and renewals online, eliminating the need for person-to-person contact.
Furthermore,
unnecessary steps in licensing will be scrapped to simplify the process, and
the duplication of documentation will be eradicated.
The
upcoming budget will announce the launch of "Banglabiz" to ensure an
integrated One-Stop Service system, operationalising an automated investment
approval system for investors.
The
NBR will fully operationalise the National Single Window, through which tax
residency certificates will be issued automatically. This will simplify the
process of availing benefits under international trade and tax treaties.
Reducing harassment in tax
payment
As
part of deregulation efforts to curb the administrative harassment faced by
businesses when paying taxes, the NBR is set to introduce online corporate tax
return filing. Alongside this, the NBR will launch a mobile application to
facilitate e-return submissions.
Businesses
will have the opportunity to file their returns throughout the year – those who
file early will be eligible for incentives. Conversely, those who delay their
submissions will face additional tax liabilities.
The
requirement for publicly listed banks, insurance, leasing, and finance
companies to mandatorily distribute 30% of their post-tax profits, as well as
the conditions regarding cash dividend payments, may be withdrawn. This will
allow these institutions to retain profits to strengthen their capital base,
expand operations, and ensure financial stability.
In
the upcoming budget, the NBR may allow an initial capital allowance of up to
four times the taxable business income during spot assessments. This is
expected to incentivise investment and increase the formalisation of businesses.
To
reduce prolonged delays in settling tax-related disputes, announcements may be
made to streamline appeals, tribunals, the High Court, and Alternative Dispute
Resolution (ADR) processes, ensuring they are resolved within specific
timeframes. Furthermore, the scope of ADR will be expanded, allowing access
without the prior filing of an appeal.
In
the budget, an opportunity will be provided to submit late returns voluntarily
after the tax year upon payment of a penalty of Tk5,000 or 10% of the tax
payable. The NBR will replace the existing penalty mechanism for the
non-deduction of withholding tax with a system requiring the payment of the
withheld amount plus an additional 50%.
NBR
officials said the government will allow the accrual-based deduction of
interest expenses, alongside significant increases in the allowable limits for
perquisites, entertainment expenses, free samples, and promotional expenditures.
Furthermore,
the government will recognise the supply of goods to export-oriented industries
through local L/Cs in foreign currency as deemed exports.
The
NBR may integrate the ASYCUDA World system with the e-return platform in the
budget. This will streamline data sharing between customs and tax
administrations, helping to curb tax evasion.
Furthermore,
the audit threshold for non-corporate taxpayers is likely to be raised from a
turnover of Tk5 crore to Tk10 crore in the new fiscal year. This measure will
ease the audit burden on small and medium enterprises (SMEs) and reduce their
operational costs.
Welcoming
the proposals, Azam J Chowdhury, chairman of East Coast Group and president of
the Bangladesh Ocean Going Shipowners' Association, told TBS that online tax
filing and fast-tracked judicial timelines will significantly unlock stalled
state revenues and boost investor confidence.
He
added that automating tax refunds within strict timeframes would incentivise
punctual tax payments, while integrating customs data with tax returns aligns
the nation with international trade benchmarks, making the investment climate
highly attractive to foreign entities.
Azam
further said, "The integration of ASYCUDA with tax returns will bring us
into parity with international standards, which foreign investors will find
very encouraging. Additionally, the significant increase in allowable limits
for perquisites and free samples is likely to boost exports."
















