Businesses urged the government to formulate an industry-and investment-friendly budget with set priorities like removal of advanced income tax (AIT), infrastructural development, investment protection, and increasing capacity of ports.
President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin presented the seven-point priorities to be set out in the budget for FY24.
They also seek a safeguard measure for CMSMEs, a bond facility to expand exports, keeping a stable supply chain of essential goods, modernization of the NBR, reducing inequality and discrimination, and technical as well as employment-oriented education.
Jashim presented the set of proposals for the upcoming budget at the 43rd meeting of the Consultative Committee of the National Board of Revenue at Pan Pacific Sonargaon Hotel in the capital on Thursday.
The FBCCI president urged the tax administration to consult them before making any decision, especially in case of sudden SRO.
“NBR introduces many SROs on their own accord without consulting traders. Later, there are difficulties in implementation at the field level,” he said, adding that, nowadays, the revenue board doesn't talk to businesses before making any Statutory Regulatory Order [SRO].
The apex-trade-body chief also said customs officials make arbitrary valuations of imported goods, which increases the price of goods.
National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem presided over the meeting where Finance Minister AHM Mustafa Kamal spoke as chief guest.
In its proposal, the country's apex chamber urged the government to keep all agro-based essential commodities out of the purview of source tax in a bid to ease price burden on consumers.
In its budget proposals the FBCCI sought exemption from deduction of 2% tax at source on supply of rice, wheat, potato, onions, garlic, chickpeas, gram, pulses, turmeric, maize, salt, edible oils, sugar, all types of fruits etc.
It says businesses procure agricultural produce directly from farmers, and so it is not possible to deduct source tax from them.
The tax burden goes to end-consumers, worsening their misery while managing escalating living cost, the FBCCI has opined in its proposals.
In the meeting, the apex chamber proposed withdrawal of the cash- transfer condition for availing reduced rate of corporate tax.
Also suggested are increase in the tax-free ceiling for individual taxpayers to Tk4 lakh, cutting corporate tax rate by 2.5% cent, reducing source tax on apparel exporters to 0.50% for the next five years, reducing tax on capital income to attract long-term investment in the capital market, offering tax exemption to e-commerce businesses for the next ten years, tax waiver on workers' participation fund, reducing tax on goods transportation service and income from non-resident Bangladeshis, tax waiver on plastic bottle recycling, etc.
The apex trade body proposed offering special concessionary corporate tax rates on the basis of annual dividend of companies and their location.
The FBCCI suggested that the NBR fix a target for the next 10 years to increase the number of taxpayers by 700,000-800,000 on an average per year.
The trade body also proposed bringing down the rates of source taxes to 1-5% for suppliers, as adjustment of the existing 7% source tax requires the publicly traded companies to gain 31.11% net profit and 23.33% for the private limited companies, which are difficult.
On VAT measures, the FBCCI proposed fixing 1% VAT at retail and wholesale stages, waiving supplementary duty (SD) on ceramics products, raising taxes on tobacco, distributing electronic fiscal devices to businesses, waiving VAT on health insurance, reducing VAT on MS products, and withdrawing advance tax (AT) from raw materials and spare-parts.
Also demanded are withdrawal of the existing definition of ‘inputs' in the VAT law, as it is creating complexities, and reduction in flat-and plot-registration fee and taxes to 5%.
Dhaka Chamber of Commerce and Industry (DCCI) President Sameer Sattar demanded a reduction in corporate tax rate by 2.5%.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-president Shahidullah Azim urged the government to remove duty on fire-extinguishing equipment.
Bangladesh Textile Mills Association (BTMA) president Mohammad Ali Khokon proposed removal of taxes on manmade fibers and recycled fiber.
Bangladesh Dokan Malik Samity president Helal Uddin requested the government to find ways of waving tax on donation for the victims of Bangabazar fire.
Bangladesh Tanners Association President Shahin Ahmed sought duty removal for CETP equipment import.
