BCI proposes 0.1pc uniform source tax for FY2423 March 2023
Business Report :
The Bangladesh Chamber of Industries has proposed a 0.1% uniform tax at source for the country's export sectors, down from the current 1%. They also proposed to fix income tax at 10%.
Anwar Ul Alm Chowdhury (Parvez), president of the BCI, made the proposal during a meeting with Abu Hena Md Rahmatul Minim, chairman of the National Board of Revenue (NBR), to discuss the FY2023-24 budget.
He also stated that the corporate tax rate in Bangladesh is significantly higher than in neighbouring countries.
"We are proposing to reduce the corporate tax in a phased manner by a 2.5% rate in every phase without any conditions. By doing this, the business at the local level will be encouraged and it will also accelerate the investment," he added.
Regarding the tax-free income limit, he stated that, in light of inflation and the rising cost of living, they advocated raising the present private tax-free income limit to Tk5 lakh for the fiscal year 2023-2024.
He also recommended a 2% tax break for environmentally friendly and green-certified businesses.
The cost of supply and production of goods has risen significantly as a result of inflation. Real profits of micro and small entrepreneurs, in particular, have fallen.
"In this regard, we propose raising the upper limit from Tk3 crore to Tk4 crore in the yearly turnover of firms not subject to VAT," he added.
He also recommended reducing the existing tax rate in the range of 0% to 5% on the import of raw materials used in the production of products of VAT-registered daily essential food products manufacturing companies and reducing it to the range of 0%-3% for importing raw materials for all industries.
He also urged a policy for the disbursement of special funds for young entrepreneurs.
"We recommend VAT exemption on all types of utilities in micro, cottage and small-scale industries and proposed tax holiday for them and young entrepreneurs for a minimum of five years and thereafter fixing tax between 10% and 15%," he added.