Monday, 27 March, 2023

DCCI for 2.5% corporate tax cut for non-listed companies in the next budget

It places budget recommendations to NBR for FY2023-24

Dhaka Chamber of Commerce & Industry (DCCI) on Sunday placed a set of budget recommendations to the National Board of Revenue (NBR) focusing on easy and business-friendly taxation system, widening income tax and VAT net, full automation of taxation system, encouraging local industrialization and ensuring investment-friendly ecosystem to boost economic growth.

Barrister Md Sameer Sattar, president of DCCI, handed over the budget recommendations to the Chairman of NBR Abu Hena Md Rahmatul Muneem at the NBR during the pre-budget discussion meeting.

DCCI President proposed for 2.5% corporate tax cut for the non-listed companies in the next budget of FY2023-24.

He also proposed to increase the tax-free income limit for individuals to Tk. 5 Lakh (which is currently Tk. 3 Lakh) considering high inflation and increased cost of living.

"At present, only 3 million TIN holders submit their returns and, for that reason, our tax-GDP ratio is very low. The tax net should be widened to include persons residing outside Dhaka and Chattogram as most tax collection comes from these areas," he added.

He also proposed an “Integrated Tax Administration System” and “Integrated VAT Administration System” in order to ensure full automation of taxation and VAT ecosystem in the country. He recommended increasing the maximum limit of annual turnover to Taka 4 crore from Taka 3 crore for cottage and small businesses who are out of VAT purview.

He also said that since the banks charge 10% to 15% source tax on deposits, in addition, imposing excise duty on deposit and savings will discourage deposits in banks. Therefore, he recommended withdrawing excise duty on bank deposit. He suggested implementing Bangladesh Single Window as soon as possible to ease the customs related processes. It will create a paperless trading system that will reduce the time and cost in foreign trade, DCCI president added.

NBR regularly arranges training for C&F officials in order to reduce mistakes in using HS code, NBR Chairman Abu Hena Md Rahmatul Muneem said.

He said that NBR has taken various initiatives to simplify the business environment in the country but regarding compliance issues, NBR’s position will be strict. The chairman sought cooperation from the business community to ease the business climate more in the country.

Bangladesh Single Window will be effectively implemented by the end of 2025, he added.