The Metropolitan Chamber of Commerce and Industry (MCCI) urged the government to raise tax-free income ceiling for individual taxpayers to Tk275,000.
It also proposed increasing the limit to Tk3,00,000 for female and senior citizens aged over 65 years and to Tk3,50,000 for physically challenged people.
MCCI president Rokia Afzal Rahman submitted the proposals at a pre-budget meeting with National Board of Revenue (NBR) yesterday.
The meeting was presided over by NBR Chairman Md Ghulam Hussain.
MCCI also proposed reduction of corporate duties on banks, insurance and financial institutions as the organisations have to pay 42.5% tax which is “very high compared to the neighboring countries.”
The chamber asked for reducing Advance Income Tax to 3% from 5% in the import level. In response, NBR chief said the government has to face revenue loss as the pending amounts of disputed tax are huge.
Citing a loss of Tk26,000 crore revenue loss from this situation, he urged the businessmen to “do something which could benefit both business and government.”
Ghulam Hussain alleged the businessmen have a tendency to go for appeals in the tribunal whenever they need to pay a big amount of tax.
The demands of MCCI, among others, also include allowing financial institutions, banks and insurances to invest in the form of fixed deposit like savings deposit in post office, deduction of duties on software imports and reduction of Vat from import of services by the export-oriented companies.
Information and Communication Technology (ICT) firms have been enjoying tax exemption since 1999, but the facility is renewed every year.
MCCI wants the facility should be fixed for at least a five-year period, which will be encouraging for the investors.
“The renewal of the exemption facility every year is really discouraging to the investors. If it is given for a five-year term, the investors feel encouraged,” said Habibullah N Karim, managing director of Technohaven Company Limited.
About automation, Ghulam Hussain said the revenue board is going to integrate works of all its three wings – Customs, Vat and Income Tax - through making services online.
“NBR will be the first fully-automated government office in Bangladesh within next one year and we are working into it,” he said, seeking support from the trade bodies, to achieve the goal.