Bangladesh Chamber of Industries (BCI) has demanded that the proposed 2.5 percentage points cut in corporate tax should be maintained for next three budgets.
At a press conference on Thursday, the trade body also called for raising the tax-free individual income limit to Tk 4 lakh from existing Tk 3 lakh while seeking a cut in minimum tax rate from proposed 0.5 percent to 0.25 percent on Tk 3 crore turnover.
BCI president Anowar-ul Alam Chowdhury read out a written statement with regard their demand for bringing changes in some budgetary proposals.
“BCI thinks that the proposed budget is local industry and private sector friendly, which will help generate employment,” Chowdhury said.
However, the trade body sought a clear direction for the huge investment required to achieve the the 7.2 percent growth projected in the budget for FY22.
Citing a hike in business cost due to Advance Income Tax (AIT), it demanded abolishment of AIT.
The highest annual turnover ceiling for industry sector should be increased to Tk 10 crore from existing Tk 3 crore, while turn over tax rate should be re-fixed at 3 percent from the proposed 4 percent, according to BCI.
Its proposal for encouraging SMEs includes 10-year tax holiday for SMEs and young entrepreneurs, tax exemption on investment and income to encourage technical and vocational course, income tax exemption for the trainers, zero source tax for industrial raw materials, and making the Competition Law 2012 effective. It also sought VAT exemption on locally made machinery for light engineering sector apart from reconsidering the 15 percent tax imposed on private universities, medical and engineering colleges. BCI proposed to set up tax offices at upazila level to expand the tax net to earn the required revenues to implement the proposed budget. Besides, it also called for ensuring good governance, proper monitoring, increase investment and production and business-friendly tax management.