Dhaka Chamber of Commerce and Industry (DCCI) on Saturday welcomed extension of tax holiday facilities proposed in the national budget for 2014-15 fiscal.
In unveiling the budget in parliament on Thursday Finance Minister AMA Muhith proposed up to 10 years of tax exemption for the under-developed areas.
The proposed budget aims to borrow Tk 31,221 crore from local banks to meet the budget deficit. The DCCI thinks that it may curtail the credit flow to the private sector.
In its reaction, the trade body said the proposed budget allows any donation or contribution in the government fund for natural calamities to be treated as CSR (corporate social responsibility) activities and hailed this initiative.
In the proposed budget advance income tax on profit from RMG products export has been reduced to 0.3 percent from 0.8 percent and advance income tax on profit from other exports has been reduced to 0.6 percent from 0.8 percent.
DCCI appreciated these proposals and thinks this will encourage the country’s export sector.
The budget recommended tax exemption on interest income from investment on pensioner savings certificates and wage earners’ bond which has also been welcomed by the DCCI.
Income tax rate for non-publicly traded company has been reduced to 35% from 37.5% which DCCI sees as a positive effort. Besides, DCCI called for reducing all other corporate taxes.
Proposed budget has targeted Annual Development Programme (ADP) of Tk. 80,315 crore, up from Tk. 60,000 crore in the revised budget of the last fiscal year and sought proper steps to implement the ADP.
DCCI welcomed government’s commitment of development of infrastructure like building Padma Bridge, setting up a tunnel under Karnafuli River in Chittagong, elevating important highways into four-lanes, establishment of deep sea port and LNG terminal.
“These commitments will encourage the private sector,” DCCI said.
DCC has hailed the proposed tax holiday for DSE and CSE for the next five years until 2019. Allocation of Tk. 250 crore for the development of human resource will have a positive effect on our economy, DCCI thinks.
DCCI wants the government to increase the tax free income limit for individuals up to 3 lakhs.
DCCI also recommends that source tax on income of the interest from FDR of trade bodies should be considered and declared as final liability.
DCCI thinks that government should widen the tax net to increase the revenue collection up to 17% by the next five years.
The chamber body thinks that if the targeted 7.3 percent GDP growth can be achieved, economy will get a momentum.
Source: UNBconnect
