The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is going to submit 175-point recommendations to National Board of Revenue today at the National Consultative Committee meeting.
The recommendations will be on income tax, corporate duty cut, continuation of tax holiday for some sectors and tax rebate on industries established in the underdeveloped areas, according to the apex trade body.
NBR and FBCCI are jointly organising the meeting at a hotel in Dhaka where Finance Minister AMA Muhith will attend as chief guest with NBR chairman Md Ghulam Hussain in the chair.
The apex trade body, representing all the country’s trade chambers and associations, would urged the government to increase tax-free ceiling for individual taxpayers to Tk250,000 from Tk220,000, considering the prevailing inflation rate and increase in living cost of the marginal taxpayers.
“There was over 7% inflation rate in the current fiscal year. The tax-free income limit is not consistent with the inflation rate and living cost of marginal taxpayers. It needs to be re-fixed,” according to a document to be placed at the meeting.
The trade body would also recommend increasing the ceiling for female and senior citizens aged over 65 years from existing Tk250,000 to Tk350,000 and for physically challenged taxpayers from Tk300,000 to Tk325,000.
To encourage industries in the backward and underdeveloped areas, FBCCI would recommend providing 50% special rebate to the investors.
The apex trade body would urge the government to reduce corporate tax rate for both the publicly listed and non-listed companies.
For all the banks and financial institutions, it would propose to set 40% corporate tax from 42.5%, for publicly traded companies to 35% from 37.5%, for non-publicly traded companies (manufacturing) 32.5% and for non-manufacturing and trading companies at 35%.
For publicly traded mobile companies it should be 40% and 42.5% for the non-publicly traded operators.
The advance income tax imposed on import of raw materials should be brought down to 3% from 5%.
It would also demand making changes in the rate of surcharge by imposing it at a progressive rate.
Taxpayers having assets valued between Tk2.5 crore to Tk5 crore could pay 5% surcharge, while it should be 10% for properties valued between Tk5 crore to Tk15 crore, 15% for assets valued Tk15 crore to Tk25 crore, 20% for assets valued Tk25 crore to Tk40 crore and 25% for having net properties valued over Tk40 crore.
Currently, the minimum slab for imposing surcharge is 10% on properties worth over Tk2 crore.
For the security of readymade garments workers, the FBCCI wants giving incentives for building accommodation in the City Corporation, municipality and cantonment board areas of Gazipur, Tongi and Savar and Narayanganj.
In regards to the information and communication Technology, the FBCCI seeks exemption of 0.5% turnover tax on electronic products, reduction of source tax on delivery of computer and computer accessories products from 5% to 3%, continuation of income tax exemption for software and ITES services till 2025 and extension of tax holiday on software products from June 30, 2015 to June 30, 2021.
It seeks tax holiday facilities in easy conditions for five years to encourage entrepreneurs and extend the tax holiday for newly established industrial undertakings till 2020.
FBCCI would urge the government to continue special income tax exemption till June 30, 2019 and 100% tax holiday for next five years to encourage investment in agro-processing and SME sectors.
It would also propose to set 5% of disputed tax rate from 10% on appeal tribunal as the law says: “no appeal shall lie against an order of the Appellate Joint Commissioner of Taxes or the Commissioner (Appeals), as the case may be, unless the assesse has paid 10% of disputed tax.”
The demands would also include ensuring a neutral appeal tribunal system, bringing commercial activities of non-government organisations under tax net and continuation of tax holiday facilities for investment in backward areas.
The demands included allowing tax rebate on power, infrastructure development, quality management, environment protection and human resource development.
