DCCI demands corporate tax cut in next FY
Dhaka Chamber of Commerce and Industry (DCCI) has asked the government to slash corporate tax in the upcoming fiscal year (FY) 2020-21.
DCCI President Shams Mahmudplaced chamber body's budget proposals for the upcoming budget to the National Board of Revenue (NBR) on Wednesday.
NBR Member (Tax Policy) Alamgir Hossain received these proposals on behalf of NBR Chairman at the NBR office in Dhaka. DCCI Senior Vice President NKA Mobin was also present during that time.
DCCI proposals sought corporate tax cut and reform in taxatioin from 2020-21, 2021-22 and 2022-23 at a progressive rate of 5 percent, 7 percent and 10 percent respectively.
It has also suggested lower tax on income of corporate dividend from 20 percent to 10 percent. The DCCI wants to increase the ceiling of income tax return for individual from existing taka 2,50,000 to taka 3,00,000 and to reduce least tax rate to 5 percent from 10 percent now.
Besides, the DCCI want to implement fully automated and digitized online tax return submission to attract more tax payers.
At present those who pay VAT return at a rate of 15 percent can enjoy tax rebate. But the chamber body seeks the same facility to people who pay VAT return at a rate of 5 percent, 7.5 percent and 10 percent as well.
DCCI also wanted inclusion of the definition of Material in the VAT Act 2012 and VAT law 2016 in the tax policy. It has also called for withdrawal of all Advance Taxes imposed on raw materials and machineries used in manufacturing industries. It is important to encourage export oriented manufacturing and export diversification, the proposals said.
The proposals also include to increase the turnover limit for SME entrepreneurs from existing taka 3 crore to taka 4 crore. Less VAT rebate may fuel inflation, DCCI president said.
Private sector should get opportunity to participate in transmission and distribution of power across the country, the proposals said adding NBR may allow special tax exemption facility on local manufacturing of power sub-station machineries and other accessories to facilitate import substitute backward linkage industry in the power sector.
DCCI said NBR must formulate the upcoming budget taking into consideration the outbreak of Coronavirus on the economy and businesses.