Dhaka Chamber of Commerce and Industry (DCCI) today proposed for 2.5% corporate tax cut for the non-listed companies in the next budget of FY 2023-24.
The chamber made the proposal while placing a set of budget recommendations to the National Board of Revenue (NBR).
In the proposal, DCCI mainly focused on an easy and business-friendly taxation system, widening income tax and vat net, full automation of the taxation system, encouraging local industrialization, and ensuring an investment-friendly ecosystem to boost economic growth.
While placing the proposal, DCCI President Barrister Md Sameer Sattar said that the tax net should be widened to include persons residing outside Dhaka and Chattogram as most tax collection comes from these areas.
He also proposed to increase the 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 the taxation and VAT ecosystem in the country.
At present, he informed that only three million TIN holders submit their returns and, for that reason, the country’s tax-GDP ratio is very low.
He recommended increasing the maximum limit of annual turnover to Taka 4 crore from Taka 3 crore for cottage and small businesses that are out of VAT purview.
He also said that since the banks charge 10% to 15% source tax on deposits, in addition, imposing excise duty on deposits and savings will discourage deposits in banks.
Therefore, he recommended withdrawing excise duty on bank deposits.
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 of foreign trade.
Chairman of NBR Abu Hena Md. Rahmatul Muneem said, in order to reduce mistakes in using the HS code, NBR regularly arranges training for C&F officials and if the businessmen want, they can avail of advance ruling in this regard.
He also urged the business community to be aware of using the correct HS code.
He informed that NBR has taken various initiatives to simplify the business environment in the country but regarding compliance issues, NBR’s position will be strict.
He also sought cooperation from the business community to ease the business climate in the country. Bangladesh Single Window will be effectively implemented by the end of 2025, he added.
Later he agreed that the tax and VAT net should be widened for increasing revenue generation.