FBCCI for raising tax-free income ceiling for individual taxpayers

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Thursday placed a set a recommendations before the government, including raising the tax-free income ceiling for individual taxpayers, to consider those in the budget for the next fiscal year (FY25).

The country’s apex trade body proposed raising the tax-free income ceiling for individual taxpayers by Tk 0.1 million to Tk 0.45 million in the next budget and raising the tax-free limit to Tk 0.5 million for senior citizens and women, considering the current inflation and the real income of low-income people.

The NBR made specific proposals in the macroeconomic sector, revenue reforms, on income tax, VAT and customs, reports BSS. 

FBCCI President Mahbubul Alam placed the proposals while addressing the 44th NBR-FBCCI Consultative Committee Meeting on the budget for the next fiscal year (FY25) held at a city hotel.

Finance Minister Abul Hassan Mahmood Ali spoke at the meeting as the chief guest, while State Minister for Finance Waseqa Ayesha Khan spoke on the occasion as a special guest. NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting.

FBCCI president Mahbubul Alam moderated the meeting, while senior Vice President of FBCCI Md Amin Helaly gave the vote of thanks.

Business leaders representing various chambers, associations and sectors put forward their suggestions in the meeting on the next budget, while three separate presentations were made on income tax, customs and VAT by concerned NBR members.

In the proposals on revenue reforms, the FBCCI president demanded separating the operations on revenue collection and revenue policy and thus forming a trade facilitation department.

The country’s apex trade body also proposed for the integration and automation of tax, VAT, customs administration as well as the formation of a separate Large Taxpayers Unit in Dhaka and Chattogram.

Mahbubul also proposed setting up tax offices at upazlia level to raise the number of taxpayers and thus increase revenues.

He urged the government to give special priority to ensuring business-friendly tax management by reducing harassment and complexities in tax collection, as well as ensuring transparency and good governance in various areas.

The chief of the country’s apex trade body also demanded reducing the cost of doing business, ensuring investment protection, enhancing port capacity, ensuring balanced investment-friendly monetary and customs management, reducing all kinds of transportation costs, including shipping costs, and developing permanent infrastructures in power and energy sector.

The FBCCI in its budget proposal, also proposed reducing tax at source against all kinds of exports, including export oriented RMG at 0.50 per cent from 1 per cent and thus keeping it for five years. Besides, it also suggested reducing the tax to 5 per cent from 10 per cent on cash support.

Mahbubul said, “It’s my belief that the next budget would reflect a farsighted, practical, and time-befitting plan to give the country’s private sector a firm footing in order to face the challenges of globalisation.”

Taking part in the meeting, Bangladesh Textiles Mills Association (BTMA) president Mohammad Ali Khokon demanded withdrawing VAT on recycled fibre as it could save foreign currency worth $4.3 billion.

He also demanded ensuring uninterrupted power and energy supply to the industries as well as rolling out an exit policy from bank loans for those businesses which could not run their businesses properly due to various adversities.

BKMEA executive president Mohammad Hatem demanded scrapping the provision for taking advance income tax or adjusting it with the concerned income tax returns.

DCCI president Ashraf Ahmed suggested taking measures to adjust the advance income tax in the concerned tax year.

FICCI President Javed Akhter proposed devising a comprehensive digital architecture to mobilise more internal revenues and ensure transparency through automation.

Former Gazipur City Corporation Mayor Jahangir Alam representing Gazipur Metropolitan Chamber demanded reducing the harassment by the field-level officials of the NBR.