DCCI proposes to cut corp tax by 2.5 pc for non-listed firms

Published : Monday, 6 March, 2023 at 12:00 AM Count : 314

Business Correspondent

Dhaka Chamber of Commerce and Industry (DCCI) have proposed a cut of 2.5 percent corporate tax of non-listed companies in the upcoming budget for FY 2023-24.

The chamber made the proposal while placing a set of recommendations for the upcoming budget to the National Board of Revenue (NBR), said a press release on Sunday.

In the proposal, DCCI mainly focused on building an easy and business friendly taxation system, widening income tax and vat net, full automation of taxations system, encouraging local industrialization and ensuring investment friendly ecosystem to boost economic growth.

While placing the proposals, DCCI President Barrister Md Sameer Sattar said tax net should be widened to include persons residing outside Dhaka and Chattogram cities as most tax collection comes from these areas.

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

He 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.

At present, he said only three million TIN holders submit their returns and, for that reason, the country's tax-GDP ratio is very low.

He suggested 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 said since banks charge 10 percent to 15 percent tax at source on deposits, in addition to imposing excise duty on deposit and savings it will discourage deposits in banks.

Therefore, he recommended withdrawing excise duty on bank deposit.

To ease the customs related processes, he suggested implementing Bangladesh Single Window as soon as possible. It will create a paperless trading system that will reduce the time and cost in foreign trade.

Chairman of NBR Abu Hena Md. Rahmatul Muneem said, in order to reduce mistakes in using HS code, NBR regularly arranges training for C&F officials and if the businessmen want, they can avail advance ruling in this regard.

He also urged the business community to be aware regarding using correct HS code. He said NBR has taken various initiatives to simplify the country's business environment but on compliance issues, NBR's position should be strict.

He also sought cooperation from the business community to ease the country's business climate. Bangladesh Single Window will be effectively implemented by the end of 2025, he said.

The NBR chair agreed tax and VAT net should be widened for increasing revenue generation.