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DCCI proposes tax-free income at Tk 5 lakh, maximum tax rate at 25pc

Published : Wednesday, 19 March, 2025 at 12:00 AM  Count : 374
Business Correspondent
The Dhaka Chamber of Commerce and Industry (DCCI) has proposed to increase tax-free income limit to Tk 5 lakh and the maximum tax rate at 25 per cent.

The chamber body has also proposed to phase out advance tax for manufacturers at the import stage and reduce advance tax for commercial importers as well.

NBR made these proposals during a pre-budget discussion at the National Board of Revenue (NBR) in Agargaon in the city on Tuesday. DCCI President Taskeen Ahmed, said tax-free income limit should be increased to Tk 5 lakh.

The maximum tax for individuals should also be reduced while NBR should to take steps to increase the tax net to increase collection. He has also proposed to reduce advance tax on commercial imports and introduce a single rate of VAT.

At present, the standard VAT is at 15 per cent, but it has been segregated to different slabs like 10per per cent, 7.5 per cent and 5 per cent in different sectors that actually causes difficulties for traders and create disputes in many cases. Many traders are forced to bear the burden of additional tax due to non-availability of input tax rebate benefit.

DCCI has therefore proposed to set a uniform single-digit VAT rate across the board and a nominal 1 per cent VAT for traders of informal sector. It will bring transparency in overall revenue management, reduce cost of doing business and have a positive impact on the manufacturing sector.

Taskeen Ahmed said tax net should be widened targeting revenue collection, reducing tax rates, introducing business-friendly tax policies and automation of revenue system, reforming VAT management, protecting local industries and manufacturing sectors, simplifying import duty, tariff system and tax structure for the individuals.

He congratulated the NBR for taking the initiative to bring all taxpayers under the online income tax return process from the next fiscal. He wondered how more than 10.13 million TIN holders in the country, only 37 lakh tax returns were registered.

The DCCI President proposed to set a short, medium and long-term target for increasing tax payers and expanding the tax net.

He proposed gradual reduction of advance tax and phasing out of existing advance tax for manufacturers at the import level. He proposed gradual reduction of advance tax at imports' level for commercial imports.

Taskeen said, traders have to pay more customs duty than the actual import price due to difference between the tariff value set by the customs authority and the market price, which is increasing the business cost making the import process complicated and expensive. That is why; he proposed to impose a fixed rate of customs duty instead of tariff value.

The NBR Chairman Abdur Rahman Khan, FCMA said the NBR is determined to expand trade and investment through gradual reforms of trade-related revenue policies. He also said that NBR will try to address the tax expenditure; adding this he also said that a portion of people are giving tax and the others are not, this cannot be accepted.

DCCI Senior Vice President Razeev H Chowdhury and Vice President Salem Sulaiman were present at that time.


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