Corporate houses in Bangladesh will be able to submit their tax returns online from next year, which will significantly reduce their difficulties, said Md Abdur Rahman Khan, chairman of the National Board of Revenue (NBR).

He made the announcement today at a dialogue titled "Policy alignment to enhance the trade and investment climate" organised by the American Chamber of Commerce in Bangladesh (AmCham) at The Westin Dhaka in the capital.

Highlighting the growing adoption of online tax filing, the NBR chairman said over 12 lakh individual taxpayers submitted their returns online this year, which is expected to increase in the years to come.

"For corporates, filing tax returns online will be a simpler process," he said.

Khan addressed concerns about the withholding tax on head office expenses and said the matter would be reviewed.

He acknowledged that tax rates in Bangladesh are high and expressed the NBR's readiness to rationalise them.

However, he urged the private sector to ensure transparency in their tax filings.

"Every penny earned and spent must be accurately reported in tax returns," he added.

Regarding the value-added tax (VAT), Khan encouraged adopting a unified VAT rate.

"Let us agree on a single VAT rate, supported by proper accounting. This could potentially reduce the VAT rate," he said, noting discrepancies in current practices, where some pay no VAT while others pay excessively.

He called on the business community to reach a consensus on the matter.

Finance Adviser Salehuddin Ahmed attended the event as the chief guest.

At the event, Eric M Walker, vice-president of AmCham, highlighted the challenges Bangladesh could face after graduating from the least-developed country status.

Citing the EU-Vietnam free trade agreement, he noted that while Vietnam enjoys reduced tariffs, Bangladesh risks losing its duty-free access under the 'Everything but Arms' initiative, which could undermine its global competitiveness.

Walker stressed the need for Bangladesh to enhance infrastructure, streamline regulations, and align with global sustainability trends.

"By improving logistics, reducing trade barriers, and modernising public services, Bangladesh can build a more competitive and resilient economy," he added.