DCCI proposes business friendly tax system for 8.5pc GDP

DCCI President Osama Taseer urged for easy and business friendly taxation system, automation of tax system and investment friendly environment to attain 8.5 per cent GDP.

The DCCI president made the proposal in a pre-budget discussion for FY19-20 with National Board of Revenue (NBR) at the latter’s office in the capital.

Taseer also proposed for 25 per cent corporate tax for non-listed companies from existing 35 per cent and 15 per cent corporate tax for listed companies which is now 25 per cent.

The DCCI chief also made a number of proposals which includes:

• Increasing tax free income limit for individual from existing Tk 250,000 to Tk 300,000.
• Increasing the tax net and to include the service sector in it.
• VAT free annual turnover of Tk 5.0 million.
• Keeping package VAT system in the next budget.
• Provision of different slabs of VAT like 5.0 per cent, 7.5 per cent and 10 per cent instead of existing 15 per cent.
• 0 per cent source tax on the interest rate of current account instead of existing 10 per cent-15 per cent.
• Withdrawal of stamp duty on mutual fund.
• Keeping existing 0.25 per cent source tax for RMG sector.
• 10 per cent tax over income of corporate dividend instead of existing 20 per cent.

NBR Chairman Md. Mosharraf Hossain said that government reduced corporate tax rate in the last budget and gradually it will be reduced further.

He said corporate tax rate is quite low in Bangladesh compared to many countries.

Mr. Hossain also said that our investment to GDP ratio is high but tax to GDP ratio is very low.

“Every year in order to meet up increased revenue target, NBR has to depend on its existing tax payers,” said the body’s chief.

He further stated that NBR is planning to open its window in all Upazilas to widen its tax net.

Mosharraf said NBR is working hard to frame out a business and investment friendly budget to mobilise industrialisation and economic development in the country.    

DCCI Senior Vice President Waqar Ahmed Choudhury, Vice President Imran Ahmed, Directors Alhaj Deen Mohammed, Enamul Haque Patwary, Hossain A Sikder, K.M.N. Manjurul Hoque, Engr. Md. Al Amin, Md. Rashedul Karim Munna, Mohammad Bashiruddin, and S.M. Zillur Rahman also spoke on the occasion.

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