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The Dhaka Chamber of Commerce and Industry (DCCI) on Sunday demanded a 2.5% reduction in corporate tax rate for non-listed companies in the upcoming budget for FY24.
Currently the corporate tax rate for the non-listed firms is 27.5%.
The chamber made the demand during a pre-budget meeting at the head office of the National Board of Revenue (NBR) in the capital.
The DCCI proposed an increase in the tax-free income limit for individuals from Tk3 lakh to Tk5 lakh now, considering the impacts of the higher cost-of-living, driven by the impacts of the Russia-Ukraine war.
While making the budget proposals for 2023-24, Sameer Sattar, president of the DCCI, said: “The tax net should be widened to include the people with taxable incomes residing outside Dhaka and Chittagong.”
In Bangladesh, there were 6.37 million taxpayer identification number (TIN) holders in FY22 but only 2.59 million submitted returns in the fiscal year.
Sattar also proposed an integrated tax administration system and an integrated VAT administration system to ensure a full automation of the taxation and value-added tax (VAT) ecosystem.
He recommended raising the VAT-free annual turnover limit to Tk4 crore from Tk3 crore for cottage and small businesses.
The chamber argued that the cost of production and transportation has gone up owing to higher inflation, which is eating up profits.
The DCCI chief also recommended withdrawal of the excise duty on bank deposits.
Since banks charge 10% to 15% source tax on deposits, the excise duty will discourage savings, he said.
To simplify customs-related processes, Sattar suggested implementing the Bangladesh Single Window as soon as possible.
The single window will be effectively implemented by the end of 2025, said Abu Hena Md Rahmatul Muneem, chairman of the NBR. He said the NBR regularly arranges training for clearing and forwarding officials in order to reduce errors in using the harmonized system (HS).
If businesses want, they can avail advance ruling in this regard, he said, urging the business community to be aware about using correct HS codes.
(DT)
