Bangladesh Chamber of Industries (BCI) on Wednesday placed a five-point proposal for the upcoming budget to increase capacity of local micro, cottage and small industries and promote young entrepreneurs in the industrial sector.
The leaders of the lone chamber body representing the country's industrial sector, placed the proposals along with a number of recommendations during a pre-budget meeting with the National Board of Revenue (NBR) in the city on Wednesday.
NBR chairman Abu Hena Md Rahmtul Munim presided over the meeting while BCI president Anwar-ul Alam Chowdhury (Parvez), directors Zia Hyder Mithu, Yashoda Jiban Deb Nath, Md. Shahid Alam, Md. Khair Mia and Md. Mahfuzur Rahman spoke on the occasion.
The BCI proposals include formulation of proper policy to finance young entrepreneurs through a special fund, setting the source tax at 0% to 3% on import of industrial raw materials, VAT exemption on all types of utilities in the micro, cottage and small industry sectors, tax holiday for such industries and young industrial entrepreneurs for at least 5 years and thereafter setting the tax rate between 10 and 15 percent.
The BCI also recommended for providing bonded-warehouse facilities to sector-based joint export-oriented organisations comprising small scale industries and women entrepreneurs.
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Terming the corporate tax rate in Bangladesh much higher than neighboring countries, the BCI proposed to reduce the income tax to 2.5 percent.
It said that it would result in encouraging business and investment at the local level.
Proposing incentives for the local industries the BCI said that there should be a uniform 0.1 percent at source and 10 percent income tax on all export sectors as the industrial sector plays a greater role in the country's economy by saving foreign exchange income through exports and reducing imports.
The BCI also proposed raising the tax-free income limit to Tk 5 lakhs for the individuals as it is Rs. 7 lakhs in India.
It urged the government for Revision of the Personal Tax Exemption Limits and Existing Income Tax Rates:
“We propose to revise the current personal tax exemption limits and existing income tax rates for the next tax year 2023-2024 taking into account inflation and cost of living”, said the BCI president.
He also proposed to fully digitise the tax system to make the tax system transparent, fast, modern, up-to-date and to encourage everyone to pay tax.
The wages of professionals, technicians and trainers should be kept tax-free, if even the industry or Institution appoint them, the BCI said urging for introducing tax on dividend at 10 percent while there should be 2 percent tax rebate for eco-friendly environment and green certified industries.