Finance Minister AMA Muhith has said that the government is thinking about slashing the corporate tax rate in the budget for fiscal year 2017-18.
"The government is thinking about cutting the corporate tax rate this time. We are also thinking about fixing the tax exemption limit for individual taxpayers for a period of three to five years," Muhith said at the joint advisory meeting between the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Sunday.
During the meeting the business community proposed that all types of corporate tax rates be slashed. They also proposed that the tax exemption limit for individual taxpayers be increased to Tk3.25 lakh from the existing limit of Tk3 lakh.
The top corporate tax rate in Bangladesh is 42%, although publicly registered companies pay 25%.
The finance minister said efforts were underway to give the tax exemption limit for individual taxpayers, including women, a permanent shape.
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Finance Minister AMA Muhith speaks at a meeting between the National Board of Revenue and business leaders April 30, 2017 Press Information Department
“Like developed countries, including the USA, there will be an income limit and tax must be paid on the surplus income beyond that limit,” he added.
Muhith said businesspeople were raising demand that they would not pay for advance VAT. At present 5% percent advance VAT is collected, he said, adding that he would try to consider the demand in the next budget.
About the consumer protection act, the minister said: “Bangladesh is weak in tobacco tax. There will be a good tobacco tax in the next fiscal year. There is no bidi, all are low quality cigarettes.”
NBR Chairman Md Nojibur Rahman, FBCCI President Abul Matlub Ahmad, Senior Vice-President Shafiul Islam Mohiuddin, DCCI President Abul Kashem Khan spoke at the meeting among others.