Dhaka Chamber of Commerce & Industry (DCCI), the country’s largest chamber made a set of recommendations and proposals to be considered in the national budget for the year 2020-21 to the National Board of Revenue Wednesday.
A delegation of DCCI, led by its President, Shams Mahmud handed over the proposals to the Member (Tax Policy), NBR, Md. Alamgir Hossain during a view exchange meeting, held between the two organization.
Alamgir Hossain received these proposals on behalf of NBR Chairman while DCCI Senior Vice President N.K.A. Mobin, FCA, FCS and other senior office bearers of the chamber were present.
DCCI President Shams Mahmud recommended to slash Corporate Tax from 2020-21, 2021-22 and 2022-23 at a progressive rate of 5 percent, 7 percent and 10 percent respectively.
He also requested to cut tax rate on income of corporate dividend from 20 percent to 10 percent. Shams Mahmud also requested to increase the limit of income tax return for individual from existing taka 2,50,000 to taka 3,00,000 and to reduce least tax return rate to 5 percent which is now 10 percent.
Besides, the DCCI President recommended implementing fully automated and digitized online based tax return submission system to attract more tax payers.
At present those who pay VAT return at a rate of 15 percent can enjoy tax rebate. But he requested to allow the same facility to them who pay VAT return at a rate of 5 percent, 7.5 percent and 10 percent as well.
He said there is no specific definition of ‘Material’ both in the VAT Act 2012 and VAT Law 2016. He thus requested to include the definition of Material in these Act and Policy.
He also requested to withdraw all Advance Tax imposed on raw materials and machineries used in the manufacturing-led industries in order to encourage export oriented manufacturing and export diversification.
He also requested to increase the turnover limit for SME entrepreneurs from existing taka 3 crore to taka 4 crore. Rebate less VAT implementation may fuel the inflation, Shams Mahmud said.
One of the basic rules of VAT calculation is to fix the VAT rate as per the ratio of value addition of the product, he added. Private sector should get the chance to participate in the transmission and distribution of power across the country, He said.
Mr Mahmud requested to allow special tax exemption facility on local manufacturing of sub-station machineries and other related accessories in order to facilitate import substitute backward linkage industry in the power sector.
Shams Mahmud finally requested NBR to formulate the upcoming budget in consideration with the present Corona Virus pandemic over the world so that government, mass people, private sector and all key stakeholders can get the best of instrumental policies and revenue management of the government for an inclusive growth.