Nearly 70% of newly started startups in the country phase out within the three years of starting and after five years, only 10% survive.
This is because of the critical and complex tax policies of the country, said Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury (Parvez).
He also said that the National Board of Revenue (NBR) ensures that everyone feels comfortable paying taxes.
The trade body president also said that in the current system of revenue collection, taxpayers are being harassed due to various unreasonable and complicated methods and no one is being encouraged to pay taxes easily.
He said it while speaking at the post-budget press conference organized by BCI in the capital on Saturday.
He also said that it should be kept in mind that the desired goal can never be achieved by showing fear.
“In order to reach the goal, it is necessary to create a friendly atmosphere. If the tax collection system is simple and reasonable, it is possible to increase the number of taxpayers from 25 lakh to 1.5 crore,” he added.
By this, the NBR can set the target of revenue collection to Tk400,000 crore from Tk370,000 crore and it will help reduce the budget deficit, he added.
“While there was a tendency among the senior entrepreneurs and industrialists to evade taxes, the new ones want to pay taxes,” he added.
There will not be a single penny of tax evasion if the harassment and complication are reduced, he added.
“But the NBR is less interested in new taxpayers,” he added.
Responding to a question, Parvez said that shutting down the markets after 8pm is logical from some context.
However, if the decision is implemented before Eid-ul-Azha, the small and medium businesses will suffer the most, he added.
“Closing shops at 8pm is not an effective way of saving energy, rather the government should focus on proper management of resources to reduce its wastage,” he added.
The government can reduce wastage of resources by easing traffic jams, cutting excessive use of water, electricity and gas at marriage and other ceremonies, households, and offices, he added.
“People normally return home from the office at around 8-9 pm because of traffic congestion on the roads. So, how can these people shop if the markets are closed at 8pm? The government should reconsider this,” he added.
He also said that the global economy is in turmoil due to the pandemic and the Ukraine crisis.
“At this difficult time, the finance minister has given a budget to achieve the growth target of 7.5% and keep inflation at 5.6% with the aim of reviving the economy, the budget is promising in these difficult times,” he added.
However, the government will face serious challenges in implementation if good governance, proper monitoring, efficiency, transparency, accountability and proper planning are not ensured.
Regarding inflation, he said that controlling inflation is the main challenge of the proposed budget.
“Although it is mentioned in the budget to keep inflation within 5.6%, there is no specific direction in the implementation. It is important to increase the capacity of domestic industries to control inflation,” he added.
In order to control inflation, emphasis needs to be placed on other issues including rationing for low-income groups, increase in private investment, job creation, revenue deficit and financing, he added.
In his speech, he also proposed to raise the tax-free income limit to Tk4 lakh considering inflation,
He also proposed to ensure a 5-year tax holiday for the SME sector and a 2% tax waiver in all types of green industries.
He also said that through the efforts of the Prime Minister, Bangladesh has emerged as a miracle nation in the world. There is no substitute for creating new entrepreneurs and developing industries to sustain it.
“In this case, increasing the capacity of the small, cottage and medium industries should play a key role. The foundation of the country will be stronger only if their contribution can be increased to 60-65%,” he added.
He also said that the uniform corporate tax for all export-oriented industries is a positive change.
“However, the increase of source tax to 1% from 0.5% will be tough for industries in the current context,” he added.
FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, MCCI President Saiful Islam, and vice presidents and directors of the BCI were also present at the event.
On June 9, Finance Minister AHM Mustafa Kamal unveiled a Tk678,000 crore national budget for the 2022-2023 fiscal year.