The Dhaka Chamber of Commerce and Industry (DCCI) has urged the National Board of Revenue (NBR) to take special measures for businesses to cover up the losses incurred due to the political turmoil in the country.
During formulation of the budget for fiscal year 2015-16, the NBR should put emphasis on a realistic budget with a guideline for business-friendly environment in the country, said the DCCI leaders.
A DCCI delegation led by its president Hossain Khaled made the plea at a pre-budget meeting with NBR Chairman Md Nojibur Rahman held at the conference room of NBR headquarters in the city yesterday.
“The business community has faced the worst economic situation due to the political turmoil in the country. In addition, the revenue shortfall from July to March of current fiscal was around Tk 2000 crore,” said DCCI President Hossain Khaled while placing a charter of demand with a-53 point recommendations.
He also requested the NBR to take necessary measures in the upcoming budget to help businesses cover up the losses.
“Although the banks have now additional deposits, no new investments are not coming up due to lack of confidence and bottlenecks. As the rate of high bank interest and cost of doing business are increasing, there should be a proper guideline for ensuring business friendly atmosphere in next budget,” he added.
The chamber leader has demanded that the businesses, which pay fixed VAT, should be exempted by 50% as a special rebate as they could not run their businesses smoothly, especially during the period of political uncertainty.
The DCCI President also requested the NBR to help the VAT paying businesses with a minimum 50% rebate on all port related charges as businesses have failed to release goods from different ports due to political turmoil and had to count additional port charges.
The association proposed to reduce the corporate tax rate for the merchant banks from existing 37.5% to 35%, for listed companies from 27.5% to 25%, and for brokerage operations at 30% from the existing 35%.
For the individual taxpayers, the chamber has recommended for fixing the tax-free income limit at Tk2.75 lakh from existing Tk2.20 lakh while it has advised the revenue watch dog to finalise the limit for women and elderly persons from Tk2.75 lakh to Tk4 lakh and for physically disabled persons from Tk3.5 lakh to Tk4 lakh.
DCCI Director AKD Khair Mohammad Khan noted that the NBR should extend the annual week-long income tax fair by one day more and should aware the people on how to fill-up the income tax return form with the help of mass media.
DCCI Vice President Shoaib Choudhury opined that the NBR should work towards lessening the fear on VAT payment through awareness building campaign.
The other demands from DCCI include finalisation of tax-free limit of the wealth tax at Tk4 crore from the existing Tk2 crore, identify and seal the source of black money generation, introduction of tax card for all level of taxpayers instead of only VIPs, expansion of tax base, reduction of advance income tax at 3% from the existing 5%, withdrawal of tax on income of chamber and trade bodies, tax holiday for automobile and automotive assembling factories, cancellation of minimum tax at the rate of 0.3% on any company’s gross receipts, preparation of separate policies and road map for the domestic automobile industry, and withdrawal of 15% VAT on use of internet.
In response, NBR Chairman Md. Nojibur Rahman explained that the next budget is important for three reasons–conclusion of sixth-five year plan and beginning of seventh-five year plan, conclusion of Millennium Development Goals and beginning of Sustainable Development Goal, and as the government will have only five years from vision 2021.
He, however, assured that the NBR team would soon scrutinise the DCCI’s proposals and would be considered for the upcoming budget for FY2015-16.
