Trump administration should not be provoked: Finance Adviser

Finance Adviser Dr. Salehuddin Ahmed has stated that Bangladesh will seek to increase engagement with the Trump administration, but emphasized that the government must avoid provoking them. He mentioned that the Trump administration has granted three months for discussions, and if needed, more time will be requested. He added that the government's efforts would focus on expanding trade and business relations.

Dr. Salehuddin made these comments while addressing the 45th meeting of the National Board of Revenue (NBR) Advisory Committee on Wednesday, April 30, at an upscale hotel in Dhaka.

The event was also attended by Commerce Adviser Sheikh Bashiruddin, Bangladesh Investment Development Authority (BIDA) Chairman Chowdhury Ashik Mahmud Bin Harun, NBR Chairman Mohammad Abdur Rahman Khan, among others. The program was conducted by FBCCI Administrator Mohammad Hafizur Rahman.

Dr. Salehuddin Ahmed further stated, “We are going through the graduation process. The business community is well-prepared. We have had discussions with 70 to 80 representatives from organizations such as the IMF, World Bank, and US Commerce. One thing to keep in mind is that the era of tax exemptions and concessions is over. We are far behind in this regard. We must increase revenue, ensure the government functions, and simultaneously provide incentives to businesses. To do that, we need money. Paying taxes is often seen as an expense, but paying taxes also brings benefits such as education, healthcare, and other social services.”

He added that the current time is challenging for trade and commerce. "We are working together to build this country. Our goal is to make people's lives easier. Yes, we are receiving criticism, but we accept it. In the upcoming budget, we will try to be more compassionate, and we ask you to be empathetic as well. It’s a 'win-win' situation. The foreign perception of Bangladesh is very positive, but the criticism from some local people often puts us in a difficult position. We need constructive criticism. The World Bank is with us, and negotiations are ongoing with the IMF."

In his address, Dr. Salehuddin also emphasized, "We will engage with the Trump administration, seek mutual understanding, but we must avoid provoking them. The US government has given us three months regarding customs issues, and if necessary, we will ask for more time. Our focus is on expanding trade and business."

At the event, FBCCI Administrator Mohammad Hafizur Rahman recommended reducing the source tax on export-oriented industries, including ready-made garments, from 1% to 0.50%.

He also proposed increasing the tax-free income limit for individuals by BDT 1 lakh, setting it at BDT 4.5 lakh. Furthermore, he suggested raising the tax-free income limit to BDT 5 lakh for female taxpayers and those above the age of 65.