Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) has demanded to reduce the advance income tax (AIT) rate and withdrawal of advance tax (AT) on industrial raw materials in the next budget for 2020-21 fiscal.
In a budget proposal, the apex trade body demanded to lower the advance income tax rate to three per cent from the existing five per cent.“AT should be withdrawn on industrial raw materials and for commercial imports, it should be adjustable through proper mechanism without delay,” FBCCI said in its budget proposal.
Rebatable VAT needs to be revised from 15 per cent to 10 per cent while other non-rebatable multiple vat rates need to be revised as it adds inflationary pressure to end-users, it said, adding that VAT on turnover of Tk 3 crore should be lowered from 4 per cent to 2 per cent.
Urging the government to keep the VAT exemption in economic zones as per earlier EZ policies, FBCCI thinks that policy consistency for the investment-friendly environment will only supplement all the progressive measures of the government.
Export source tax should be revised considering export shrinkage due to Covid19 for next one year. Corporate tax should be revised to 25 per cent over the next three years. Import of luxury products should be discouraged through customs tools which may be a revenue source, it mentioned in the proposal.
The apex trade body also thinks that due to Covid-19 crisis, priority investment scheme in all productive sectors such as real estate sector should be allowed without penalty and prejudice for next five years including capital market investment schemes.
All income tax exemption ceiling should be increased as per inflation since 2015. It also suggested waiving income tax all veteran freedom fighters.