• Saturday, Nov 23, 2019
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NBR chief hints at reducing corporate tax in phases

  • Published at 04:09 pm April 3rd, 2019
NBR Chairman Mosharraf Hossain Bhuiyan
NBR chairman Mosharraf Hossain Bhuiyan Dhaka Tribune

Currently, there are minimum seven slabs of corporate tax ranging from 25% to 45% based on different categories corporate organizations

The National Board of Revenue Chairman Md Mosharraf Hussain Bhuiyan on Tuesday hinted about reducing corporate tax rates in phases.

“The government reduced the tax rates last year and has a plan to slash it gradually,” he said while addressing a budget talk with the business leaders from Dhaka Chamber of Commerce and Industries in the capital.

“But it is not possible to slash down the tax overnight as cutting down the slabs will cause a huge revenue shortfall,” he added.

“I cannot give assurance about rate cut this year before finalizing the budget proposal but we have kept it under consideration,” he said.  

NBR Members Firoz Shah Alam (duties and ICT) and Kanon Kumar Roy (income tax) and other high officials, DCCI President Osama Taseer, Senior Vice President Waqar Ahmad Choudhury, Vice President Imran Ahmed and other directors from the body were present in the discussion. 

Currently, there are minimum seven slabs of corporate tax ranging from 25% to 45% based on different categories corporate organizations.

The NBR chief said every year in order to meet up increased revenue target, NBR depended on its existing tax payers. 

“But now we are planning to open NBR’s window in all Upazila-Thana level to widen tax net,” he said, adding: “so that we can cut tax rate and reduce pressure on listed and regular taxpayers.”

“We have noticed that the rich outside the capital are not aware of revenue. We will try to incorporate them in tax net,” Hussain said.

He said NBR was working hard to formulate a business- and investment-friendly budget to mobilize industrialization and economic development in the country.

DCCI President Osama Taseer at the program placed their recommendations and demands before NBR for upcoming FY 2019-20 budget.

Osama Taseer urged NBR for easy and business-friendly taxation system, automation of tax system and investment-friendly environment to attain 8.5% GDP. 

He proposed 25% corporate tax for non-listed companies, which is now 35% and 15% corporate tax for listed companies, which is 25% now.

The DCCI president called for increasing tax-free income limit for individual from existing Tk2,50,000  to Tk3,00,000. 

“At present 2 million people are submitting income tax return but the tax net should be expanded,” he said, urging NBR to bring service sector under tax net. 

He also proposed for VAT-free annual turnover of Tk5 million and demanded package VAT system in the upcoming budget.