The Foreign Investors’ Chamber of Commerce and Industry wants Workers Profit Participation Fund (WPPF) as an expense of a respective company as stipulated in the labour law. While dwelling on the ensuing budget, FICCI President Naser Ezaz Bijoy said on Wednesday that they want the facility as this is not a part of the profit of a company rather it is payable to the employees from the net profit according to labour law of 2006.
The speakers said the proposal of exclusion of the fund from the company expense is a violation of law.
A company is required to pay WPPF as per section 234 of the labour law. It is clearly stated in section 244 of the act that all the companies to whom WPPF applies to shall be allowed the allocation made to the fund as deduction before estimating the taxable income.
Disallowing WPPF as an expense is identical to double taxation from both employee and employers, said the FICCI president.
The FICCI also wants the continuation of tax rates and policy for at least three to five years. Frequent changes in policies distract the investors, thinks FICCI.