Dhaka Chamber of Commerce and Industry (DCCI) on Monday urged the government to reduce value-added tax (VAT) to 7% instead of 15% in the upcoming new VAT Act 2012, which will be implemented from July next.
The trade body also suggested reducing corporate tax rate for merchant bank to 35% from existing 37.5%, 30% from 35% for non-public trade company, 22.5% from 25% for public trade company and 32.5% from 35% for brokerage operations.
DCCI president Abul Kasem Khan made the proposals while placing their recommendations to the National Board of Revenue (NBR) for the next budget in the fiscal year 2017-18 at pre-budget talks held at NBR headquarters.
NBR Chairman Nojibur Rahman presided over the meeting while DCCI president put forward a total of 49 budget recommendations.
While placing the recommendations, Kasem proposed to keep tax-free income ceiling up to Tk3.5 lakh for common people and Tk4.75 lakh for wounded freedom fighters.
He also proposed to keep research and development activities free from VAT and tax.
The DCCI president also proposed tax exemption on the company’s profit re-invested in the same business to expedite local investment in the economy.
“For small traders, DCCI demands no VAT up to Tk50 lakh turnover and 3% VAT for the turnover above Tk50 lakh to Tk1.2 crore.”
He said: “Frequent changes to duty structure sometimes hamper the momentum of industrialisation, so the chamber is requesting the government to formulate a static duty structure at least for 3-5 years.”
The business leader proposed to give six categorised (Green, Green Plus, Silver, Gold, Gold Plus, and Platinum card) electronic smart cards to the valued tax payers.
He also proposed introduction of VAT Smart Card as tax cards ass out of 8.4 lakh BIN holders, only 30,000 pay VAT.
“VAT exemption on the internet use will help foster the dream of being Digitised Bangladesh soon.”
Speaking at the meeting, DCCI senior vice-president Kamrul Islam also urged the authority to ease online tax payment system and create awareness among tax payers.
Nojibur Rahman said NBR will organise workshops on tax issues to create awareness among mass people even in remote areas of the country.
He thanked DCCI since all its members are tax compliant.
NBR members Farid Uddin, Parvez Iqbal and Barister Jahangir Hossain, DCCI vice-president Hossain A Sikder and Director Asif A Chowdhury were, among others, present at the meeting.