The government plans to provide temporary tax relief to the entrepreneurs just for relocating their industries outside the capital.
National Board of Revenue (NBR) Chairman Md. Ghulam Hussain yesterday came up with the disclosure while addressing a pre-budget discussion with the representatives of Bangladesh Chamber of Industries (BCI) at the NBR headquarters in the capital.
As Dhaka has scored top as the worst livable city in the world, Ghulam Hossain requested the businesses to address this issues, bringing some changings in their business policy.
Referring to a recent global survey conducted by Economist Intelligence Unit, he noted that Dhaka had earned 38.7 points on a scale of 100, which is lowest among other major cities in the world.
“Those, who will establish industries in and around the capital like Savar, Ashulia, Gazipur or Narayanganj has to pay higher taxes but those who will shift businesses far from the capital or establish new industries outside the city will enjoy temporary tax relief,” he categorically said.
He assured the business of ensuring all the facilities for relocating their industries outside of Dhaka, which could also be helpfulfor the workers to work in a hygienic atmosphere, which is totally absent in Dhaka.
“Businesses have started to go outside the capital as major investors like Globe, Lalmai Group, Partex Group have already moved to Noakhali region. If you shift your industries, you will get benefits, which will be increased further in case of the new investors,” he clarified.
During the meeting, the BCI leaders placed a 73-point recommendations to the NBR for considering before finalising the budget for the next fiscal 2014-15.
The BCI Director Mohabbat Ullah, also managing director of Nippon Industries Pvt. Limited, urged the NBR to reduce the tax on annual gross income at 0.25% from 0.5%.
He also urged the NBR to provide tax holiday without any conditions, especially for the newly established industries in the less developed and remote areas.
In response, NBR chairman asked the BCI leaders to come up with a specific proposal and submit it to NBR for consideration.
Other demands of BCI include providing special benefits to small companies, who import intermediary materials and make assemblies here, supporting jute factories, fixing 0% tax on import of mould (capital machinery for industries), imposing more taxes on imported biscuits, reducing duties at import of lorry and pickups etc.
BCI also demanded for the withdrawal of taxes from capital machinery import for plastic industry, gas generator, withdrawal of VAT from local made plastic toys, reducing customs duty from 25% to 5% for import of component of toys, increasing supplementary duty on imported plastic pipes from existing 30% to 100%, increasing supplementary duty on Completely Built Unit (CBU) motorcycles from existing 45% to 60%.
Chairman of Aysha Memorial Hospital Priti Chakraborty requested the NBR to allocate a Tk500crore budget for the women entrepreneurs to support them working in the macro-level businesses.
They also urged the NBR not to do audits in the industries for thrice or fourth times in a year, rather to make it once in a year and establishment of plastic testing laboratory.
In response, NBR chairman said the expectation from the businesses were very high, but the NBR would consider the proposals on three point of views- revenue side, industries side, and consumers’ side. He also urged businesses not to focus on only reduction or increase of duties, rather to focus on policy protection.
The meeting was attended, among others, by NBR member (income tax policy) Syed Aminul Karim, former NBR member (VAT) Md. Shahabuddin, BCI senior vice president Mostafa Azad Chowdhury Babu, and director Zia Hayder Mithu.