A file photo shows income taxpayers filling in tax returns forms at an income tax fair in Dhaka. Two leading trade bodies on Tuesday demanded that National Board of Revenue revise upward the tax-free income limit for individual taxpayers in the national budget for the upcoming fiscal year (2019-2020) taking into consideration the hike in cost of living over the last few years. — New Age photo
Two leading trade bodies on Tuesday demanded that National Board of Revenue revise upward the tax-free income limit for individual taxpayers in the national budget for the upcoming fiscal year (2019-2020) taking into consideration the hike in cost of living over the last few years.
At a pre-budget discussion with National Board of Revenue held at NBR office in Dhaka, Dhaka Chamber of Commerce and Industry demanded an increase in tax-free income threshold to Tk 3 lakh from the current Tk 2.50 lakh.
Bangladesh Chamber of Industries recommended raising the limit to Tk 3.50 lakh in the budget.
Tax-free income limit that has remained unchanged since FY 2015-2016 should be increased as the cost of living rose by 22.59 per cent over the years, DCCI said in its written budget proposal.
The trade body also demanded a reduction in corporate income tax rates for both publicly listed and non-listed companies in the upcoming fiscal year.
Corporate income tax should be lowered to 25 per cent for non-listed companies from the current 35 per cent and to 15 per cent for listed companies from the existing 25 per cent, DCCI said.
The rate of corporate tax is very high in the country compared with that in the countries having similar economic development, it said.
DCCI also demanded a reduction in corporate tax rate for banks, insurance companies and financial institutions, telecom operators and merchant banks.
DCCI president Osama Taseer placed the chamber’s budget proposal to NBR chairman Md Mosharraf Hossain Bhuiyan at the meeting.
Osama sought easy and business-friendly taxation system, automation of tax system and investment-friendly environment.
He also proposed increasing the VAT-free turnover limit to Tk 50 lakh and keeping the current package VAT system in the next budget.
DCCI proposed three VAT rates — 5 per cent, 7.5 per cent and 10 per cent.
At a separate meeting, BCI sought tax holiday for small and medium industries and young entrepreneurs for five years to encourage industrialisation in the country.
The chamber also demanded a reduction in corporate tax rate to 20 per cent for listed companies and 30 per cent for non-listed companies in the next budget.
BCI president Anwar-ul Alam Chowdhury said that tax policy should encourage entrepreneurship in the country to create employment and boost economic development.
He also sought tax benefit for investment for skill development.
NBR chairman Md Mosharraf Hossain Bhuiyan said that it was not true that the rate of corporate income tax was higher in Bangladesh.
Despite the fact, NBR will gradually reduce the rate in future, he said.
DCCI senior vice-president Waqar Ahmed Choudhury and vice-president Imran Ahmed, and BCI vice-president Priti Chakraborty spoke, among others, at the meeting.
Source: New Age.
