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Dhaka Chamber of Commerce & Industry (DCCI) on Wednesday placed its budget proposals for the fiscal year 2020-21 to the National Board of Revenue (NBR).
In the proposal, DCCI President Shams Mahmud recommended to slash Corporate Tax at a progressive rate of 5.0 per cent, 7.0 per cent and 10 per cent from 2020-21, 2021-22 and 2022-23, respectively.
NBR member (Tax Policy) Md Alamgir Hossain received these proposals on behalf of the NBR Chairman.
DCCI Senior Vice President N KA Mobin, FCA, FCS was present at the time.
The DCCI president also requested to cut tax rate on income of corporate dividend from 20 per cent to 10 per cent.
Shams Mahmud also requested to increase the limit of income tax return for individual from existing Tk 250,000 to Tk 300,000 and to reduce least tax return rate to 5.0 per cent which is now 10 per cent.
Besides, the DCCI President recommended to implement fully automated and digitised online based tax return submission system to attract more tax payers.
At present those who pay VAT return at a rate of 15 per cent can enjoy tax rebate. But he made a request to allow the same facility to them who pay VAT return at a rate of 5.0 per cent, 7.5 per cent and 10 per cent as well.
Mr Mahmud said there is no specific definition of ‘Material’ both in the VAT Act 2012 and VAT Law 2016. He thus requested to include the definition of Material in these Act and Policy.
He also requested to withdraw all Advance Tax imposed on raw materials and machineries used in the manufacturing-led industries in order to encourage export- oriented manufacturing and export diversification.
Private sector should get the chance to participate in the transmission and distribution of power across the country, He said. He also requested to allow special tax exemption facility on local manufacturing of sub-station machineries and other related accessories in order to facilitate import substitute backward linkage industry in the power sector.
Shams Mahmud finally requested NBR to formulate the upcoming budget in consideration with the present Corona Virus pandemic over the world so that government, mass people, private sector and all key stakeholders can get the best of instrumental policies and revenue management of the government for an inclusive growth.