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Realtors and related backward linkage businesses have proposed that the government should reduce duty on import of raw materials to lower the construction product prices on the local market.
At a pre-budget discussion with the National Board of Revenue in the capital, Dhaka, on March 2, they also sought several other fiscal supports in the national budget for the forthcoming fiscal year 2022-2023 to overcome the Covid fallout on trade and business.
They said that the sectors had a great contribution to the country’s revenue mobilisation and employment generation but due to the global price hike of raw materials, production costs had increased gradually, which raised the cost of the infrastructural development.
They hoped that duty reduction on import of raw materials might play a vital role in lowering the cost of the infrastructural development of the country.
The businesses also demanded that the government reduce the corporate tax so that they can overcome the Covid-induced economic shock within a short period of time and stressed extending the direct tax net.
They also urged to relax the customs regulations and introduce the latest technology in ports of the country to minimise the demurrage risk of raw goods.
Leaders of the Real Estate and Housing Association of Bangladesh demanded that the NBR continue allowing undisclosed money investment in the housing sector without any question for the next 10 years to check money laundering.
They requested the government to cut the registration fees to 7 per cent from the existing 10 per cent and also suggested a minimum tax rate on second-hand assets transfer.
They also requested to reduce the gain tax from existing 15 per cent to four per cent and also advocated for reducing the income tax for housing entrepreneurs.
Bangladesh Steel Manufacturers’ Association leaders proposed a reduction in import duties on scrap, graphite powder, bars and rods and others raw materials, saying that the prices of such materials increased on the international market.
They also requested to cut corporate tax rate to 25 per cent from the existing 30 per cent and also to withdraw VAT on retail businesses.
Bangladesh Cement Manufacturers Association leaders demanded reducing advance income tax on import of clinker, limestone, slag, fly ash and gypsum to 0.50 per cent from the existing 2-5 per cent.
They also demanded a cut in sales tax rate to 0.05 per cent to lower the dual tax burden on the businesses and also requested to ensure the advance income tax adjustment and refund facilities for them.
Steel building manufacturers said that customs duty on import of raw materials was higher than the finished products and demanded reducing the customs duty from the existing 30 per cent to 5 per cent on raw materials of the pre-fabric steel building to protect the industry.
Local iron and steel importers demanded reducing the tariff rate from the existing 25 per cent to10 per cent and also withdrawal of the existing 10 per cent regulatory duty.
Bangladesh Association of Construction Industry leaders said that the tax burden on the sector was over 70 per cent though the existing corporate tax rate on the sector was set at 32 per cent.
Brick manufacturers demanded VAT exemption and also sought permission to pay VAT in four instalments to ensure the VAT compliance for the businesses.
Tiles dealers and importers demanded cutting the supplementary duty to 20 per cent from the existing 60 per cent.
They suggested ensuring the installation of the electronic fiscal device system at all retail tiles businesses to collect VAT.
NBR chairman Abu Hena Md Rahmatul Muneem presided over the discussion.
He said that the forthcoming national budget would be formulated focusing on boosting the economic mobilisation and decreasing import dependency on finished products or goods.
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