The Association of Bankers, Bangladesh has suggested that the government cut the corporate tax rate to 30% from the existing rate for the banks and create the same tax rate for all listed companies in the forthcoming national budget for FY25.
They also suggested extending the minimum taxable income ceiling for individual taxpayers to Tk5 lakh from the existing Tk3.5 lakh.
They made the proposals in a written form, signed by Chairman of the association Selim Reza Farhad Hussain, at a pre-budget discussion with the National Board of Revenue for the FY25 budget at the NBR’s office on the day.
The association also said that there was some obscurity in some sections of income tax laws. They suggested that the obscurities should be clarified.
They also suggested allowing banks to apply tax rates specified in double tax treaties.
A double taxation avoidance agreement or double tax treaty refers to a tax treaty signed between Bangladesh and another country (or multiple countries) so that taxpayers can avoid paying double taxes on their income earned from the source country as well as the country of residence.
The Dhaka Stock Exchange and Chittagong Stock Exchange suggested reconsidering the gap between the corporate tax rate of the listed and the unlisted companies at the discussion.
The bourses suggested tax exemption on interest against any kind of bond.
The Dhaka bourse also suggested reducing tax at source from the trading right entitlement certificate holders of the stock exchanges.
The main turnover of TREC holder companies is commission income. If tax is charged at such a high rate, it is difficult for the TREC companies to survive and to contribute to the capital market, it also said.
Bangladesh Insurance Association leaders demanded withdrawal of the 5% gain tax deduction policy on interest of life insurances and withdrawal of 15% VAT deduction policy on reinsurance commission.
NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting attended by representatives of banks, DSE, CSE, Bangladesh Insurance Association and non-bank financial institutions.