Dhaka Chamber of Commerce and Industry (DCCI) on Tuesday made a proposal to raise the ceiling of tax-free income to Taka 3 lakh from the existing Taka 2.5 lakh in the next fiscal budget.
It also placed recommendation to cut corporate tax rate by 5 percent in the upcoming national budget.DCCI President Osama Taseer and other leaders of the trade body at a pre-budget meeting with the National Board of Revenue (NBR) Chairman Md Mosharraf Hossain Bhuiyan tabled those proposals at NBR auditorium.
DCCI President said at present 2 million people are submitting income tax return but the tax net should be increased and he urged to bring service sector under tax net.
He also proposed for VAT free annual turnover of Taka 5 million and requested to keep package VAT system in the next budget. Regarding VAT he also proposed for different slabs of VAT like 5 percent, 7.5 percent and 10 percent instead of existing 15 percent.
He also recommended for widening VAT net as well. The DCCI President proposed 5percent source tax on the interest rate of current account which is 10-15percent now.
He also proposed to withdraw stamp duty on mutual fund.
In the RMG sector, he proposed to keep existing 0.25percent source tax in the next budget. He recommended for 10percent tax over income of corporate dividend instead of existing 20percent.NBR Chairman Md. Mosharraf Hossain Bhuiyan said that government reduced corporate tax rate in the last budget and it will be reduced gradually in future.
He said corporate tax rate is quite lower in Bangladesh than many other countries. He also said that our investment to GDP ratio is high but our tax to GDP ratio is very low.
He also said that every year in order to meet up increased revenue target, NBR has to depend on its existing tax payers. But NBR is planning to open its window in all Upazila level to widen its tax net.
He said NBR is working hard to frame out a business and investment friendly budget to mobilize industrialization and economic development in the country.
DCCI Senior Vice President Waqar Ahmed Choudhury, Vice President Imran Ahmed, Directors Alhaj Deen Mohammed, Enamul Haque Patwary, Hossain A Sikder, K.M.N. Manjurul Hoque, Engr. Md. Al Amin, Md. Rashedul Karim Munna, Mohammad Bashiruddin, and S.M. Zillur Rahman also spoke on the occasion.