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Dhaka Chamber of Commerce & Industry (DCCI) one of the largest trade bodies of the country placed a set of budget recommendations to the National Board of Revenue (NBR) today on 5 March, 2023 mainly focusing on easy and business friendly taxation system, widening income tax and vat net, full automation of taxations system, encouraging local industrialization and ensuring investment friendly ecosystem to boost economic growth.
Barrister Md. Sameer Sattar, President, DCCI handed over Chamber’s budget recommendations to the Chairman of NBR Abu Hena Md. Rahmatul Muneem today at the NBR during the pre-budget discussion meeting. DCCI President proposed for 2.5% corporate tax cut for the non-listed companies in the next budget of FY2023-24. He also proposed to increase the tax free income limit for individuals to Tk. 5 Lakh (which is currently Tk. 3 Lakh) considering high inflation and increased cost of living. At present, only 3 million TIN holders submit their returns and, for that reason, our tax-GDP ratio is very low. He said that tax net should be widened to include persons residing outside Dhaka and Chattogram as most tax collection comes from these areas. He also proposed for an “Integrated Tax Administration System” and “Integrated VAT Administration System” in order to ensure full automation of taxation and VAT ecosystem in the country. He recommended to increase the maximum limit of annual turnover to Taka 4 crore from Taka 3 crore for cottage and small businesses who are out of VAT purview. He also said that since the banks charge 10% to 15% source tax on deposits, in addition, imposing of excise duty on deposit and savings will discourage deposits in banks. Therefore, he recommended to withdraw excise duty on bank deposit. To ease the customs related processes, he suggested to implement Bangladesh Single Window as soon as possible. It will create a paperless trading system that will reduce the time and cost in foreign trade.
Chairman of NBR Abu Hena Md. Rahmatul Muneem said, in order to reduce mistakes in using HS code, NBR regularly arranges trainings for C&F officials and if the businessmen want, they can avail advance ruling in this regard. He also urged the business community to be aware regarding using correct HS code. He informed that NBR has taken various initiatives to simplify doing business environment in the country but regarding compliance issue, NBR’s position will be strict. He also sought cooperation from the business community to ease the business climate more in the country. Bangladesh Single Window will be effectively implemented by the end of 2025, he added. Later he agreed that tax and VAT net should be widened for increasing revenue generation.
Published on: 2023-03-05