Dhaka, April 5 -- The American Chamber of Commerce in Bangladesh (AmCham) has proposed a 5 percent cash incentive on card-based payments to accelerate digital transactions.

Under the proposal, customers would receive a 3 percent incentive while merchants would get 2 percent.

AmCham suggested that banks, businesses, or Mobile Financial Service (MFS) providers could initially fund this incentive.

The proposal was placed during a pre-budget consultation meeting at the National Board of Revenue (NBR) building in Agargaon on Sunday.

AmCham also recommended allowing the direct application of tax rates as per Double Taxation Avoidance Agreements to bypass the need for separate certificates.

If certificates remain mandatory, they suggested a...