MCCI for reducing corporate tax rate

The Metropolitan Chamber of Commerce and Industry (MCCI) has proposed reducing corporate tax rates for the next fiscal year (FY25).

The MCCI made the proposal at a pre-budget discussion with the National Board of Revenue (NBR) held at the NBR Bhaban in the capital’s Agargaon area.

In the budget proposal, MCCI president Kamran T Rahman said that the corporate tax rate was reduced by 2.5 per cent in the last fiscal year in almost all cases, subject to some conditions.

But, under the current circumstances, no one can enjoy the benefits of the reduced corporate tax rate.

Kamran said that although this corporate tax rate is 20 per cent for public limited companies, it can increase up to 40 per cent to 50 per cent in some cases.

The MCCI president said since Bangladesh is going to graduate from the LDCs by 2026, there is a need to restructure the income tax rate, VAT rate, supplementary duty, and customs duty.

He said Bangladesh needs to put emphasis on automation.

Besides, the MCCI president suggested bringing reforms to the existing laws related to e-invoicing in submission of VAT returns, the tax fixation system, appeals, tribunals, and ADR, introducing provisions for conducting hearings online, and reconsidering the mandatory provision for submitting acknowledgment slips for availing of 43 types of services.

Speaking on the occasion, NBR Chairman Abu Hena Md Rahmatul Muneem said that challenges will always remain in the economy, and no one can expect a nice environment.

He also assured that he would consider rationally lowering the corporate tax rate since such a rate has been reduced by 7.50 per cent over the last few years.

Muneem said support from all stakeholders is necessary to make the automation initiative a success. "But it’s not possible to do something overnight for which time is needed.”