#Title

DCCI seeks 2.5% corporate tax cut for non-listed firms in FY24
STAR BUSINESS REPORT
The Dhaka Chamber of Commerce and Industry (DCCI) yesterday called for a 2.5 per cent reduction in the corporate tax rate for the non-listed companies in the upcoming budget.
Currently, the corporate tax rate for the non-listed firms is 27.5 per cent.
The chamber made the demand during a pre-budget meeting at the head office of the National Board of Revenue (NBR) in the capital’s Agargaon.
The DCCI proposed an increase in the tax-free income limit for individuals to Tk 5 lakh from Tk 3 lakh now, considering the impacts of the higher cost-of-living, driven by the impacts of the Russia-Ukraine war.
While making the budget proposals for 2023-24, Sameer Sattar, president of the DCCI, said: “The tax net should be widened to include the people with taxable incomes residing outside Dhaka and Chattogram.”
In Bangladesh, there were 63.74 lakh taxpayer identification number holders in 2021-22 but only 25.90 lakh submitted returns in the fiscal year. The country has one of the lowest tax-to-GDP ratios in the world.
Sattar also proposed an integrated tax administration system and an integrated VAT administration system to ensure a full automation of the taxation and value-added tax (VAT) ecosystem.
He recommended raising the VAT-free annual turnover limit to Tk 4 crore from Tk 3 crore for cottage and small businesses.
The chamber argued that the cost of production and transportation has gone up owing to higher inflation, which is eating up profits. If the VAT-free ceiling increases, it would help small traders.
The DCCI chief recommended withdrawal of the excise duty on bank deposits.
Since banks charge 10 per cent to 15 per cent source tax on deposits, the excise duty will discourage savings, he said.
In order to simplify customs-related processes, Sattar suggested implementing the Bangladesh Single Window as soon as possible.
“It will create a paperless trading system that will cut the time and costs involved in international trades,” he said.
The single window will be effectively implemented by the end of 2025, said Abu Hena Md Rahmatul Muneem, chairman of the NBR. He said the NBR regularly arranges training for clearing and forwarding officials in order to reduce errors in using harmonised system (HS).
If businessmen want, they can avail advance ruling in this regard, he said, urging the business community to be aware about using correct HS codes.
Muneem informed that the NBR had taken various initiatives to improve the business environment.
“But on compliance, the NBR’s position will always be firm.”
He sought cooperation from the business community to better the business climate.
In the same meeting, the Bangladesh Restaurant Owners Association demanded bringing all food-related businesses under the VAT registration system.
The Bangladesh Agro-Processors’ Association called for withdrawal of the tax deducted at source against the supply of agricultural produce and increasing subsidies against the export of agro-processed products from 20 per cent to 30 per cent for the next five years.
The Bangladesh Tea Association has proposed to maintain the current minimum tariff of tea $2.50 per kilogramme in the next budget as well.
In its proposal, the Bangladesh Dairy Farmers’ Association demanded income tax exemption and removal of VAT on domestically produced milk, dairy products and meat for the next 20 years to protect the farmers struggling to survive owing to the ongoing economic stress.
The Hajj Agencies Association of Bangladesh has sought duty-free facility to import cars used by the operators.
The Bangladesh Security Services Companies Owners Association said the corporate tax, VAT, source tax and turnover tax should be withdrawn for them.