Bangladesh top trade body FBCCI has urged the government to increase tax-free income ceiling for individual taxpayers to Tk3,25,000.
They said it should be considered due to inflation and increased living cost of the marginal taxpayers. The current ceiling is Tk2,50,000.
This is one of the 83-point recommendations on income tax that the apex trade body is set to place at the 37th NBR-FBCCI National Consultative Committee meeting for consideration in the upcoming fiscal year 2017-18 budget.
NBR and FBCCI will jointly organise the 38th meeting of the consultative committee at Bangabandhu International Conference Centre (BICC) today.
Finance Minister AMA Muhith will attend the meeting as the chief guest while State Minister for Finance MA Mannan will attend as special guest.
NBR Chairman Md Nojibur Rahman, also senior Secretary to the Internal Resources Division under the Finance Ministry, will chair the open discussion programme.
The apex trade body also requested the government to reduce corporate tax rate, so it is made equivalent with the neighbouring countries.
The FBCCI suggested corporate tax rate at 22.5% from existing 25% for publicly traded companies, reads the proposal.
For non-publicly traded companies, the trade body recommends revenue authorities reduce the rate at 30% for manufacturing companies while 32.5% for non-manufacturing companies from the existing 35%.
For merchant banks, FBCCI proposed 35% tax from existing 37.5%, while 37.5% corporate tax for publicly traded companies from existing 40% and 40% for non-publicly traded companies instead of 42.5%, according to the proposal.