The Dhaka Chamber of Commerce & Industry (DCCI) proposed to reduce corporate tax at a rate of 2.5 per cent for both listed and non-listed companies which are now 22.5 percent in order to make businesd competitive in the region.
“Slashing tax on income of corporate dividend from existing 20 per cent to 10 per cent will encourage the local investors to re-invest as well as boost efficiency in the stock market,” said Rizwan Rahman, president of DCCI.
Rizwan handed over the Chamber’s budget recommendations to the Chairman of NBR Abu Hena Md. Rahmatul Muneem at a pre-budget discussion meeting held at NBR Building at Segunbagicha on Thursday.
The DCCI placed 40 recommendations for the upcoming national budget of FY 2022-23 to NBR.
Rizwan proposed to increase the tax free income limit for the individual taxpayer from existing taka 3 lakh to taka 4 lakh considering the increasing inflation and cost of living.
He said that about 27 lakh tax payers regularly submit their returns on an average every year which is very nominal for an economy like Bangladesh.
DCCI chief also said that NBR should take a long term strategic plan to increase the number of taxpayers up to at least 8 million in the next 10 years. He also underscored the importance of full automation of the overall taxation system.
Currently businesses that have an annual turnover of taka 3 crore are exempted from VAT. But he recommended to increase this turnover limit to taka 4 crore in the next budget and also requested to impose turnover tax based on product’s value addition or profit margin.
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Rizwan also recommended minimizing the lengthy process of getting bond licenses for the leather goods and footwear industry.
Moreover, he suggested giving bond renewal facilities for at least 3 years to these sectors like the RMG sector. He also demanded tax exemption on locally produced machinery and components for electric vehicle charging stations in the country in order to promote sustainable and environment friendly automobile industry within the country.
Lastly the DCCI President Rizwan stressed on an easy and business friendly taxation system, increasing tax and vat net, full automation of tax management, product diversification, encouraging local industrialization and an investment friendly environment aiming to attain the goal of economic development.
In response the NBR chairman said that trade organizations can arrange knowledge sharing activities to make their members aware of various policies that NBR takes related to revenue and duty structure.
“Before LDC graduation our private sector has to enhance their capacity because after graduation many facilities that they are enjoying now will not be available then. To create a business friendly environment in the country NBR is relentlessly working and NBR is simultaneously trying to increase the tax net,” he said.
In the last two years the government was more flexible in terms of tax rate to boost GDP and employment generation and this year the budget will be made considering macro policy perspective, he said.
Senior NBR officials and DCCI leaders also present in the pre-budget discussion.