The Federation of Bangladesh Chambers of Commerce and Industry on Thursday suggested that the government should take a set of fiscal measures to protect domestic industries from uneven competition with imported finished goods and make the local industries competitive in the export market. At the 35th consultative committee meeting on budget, they demanded reduction of the duty on import of capital machinery and raw materials in a bid to boost investment in the country.
The apex trade body also sought an increase of tax-free income limit for individual taxpayers to Tk 2.50 lakh from the existing Tk 2.20 lakh and reduction of corporate tax for large companies to encourage local and foreign investment in the manufacturing sector.
The National Board of Revenue and the FBCCI jointly organised the meeting to discuss the budget proposals put forward by different stakeholders.
At the meeting, the FBCCI placed a set of 617 recommendations related to income tax, customs duty and value-added tax for the budget for the financial year 2014-15.
Leaders of the trade body also urged the government to ensure political stability, provide gas and electricity connection, develop infrastructure and lower the interest rate of bank loans to single digit in a bid to create favourable environment for investment.
They said that an appropriate protection to the domestic industries would create more employment opportunity through increasing production and export.
FBCCI president Kazi Akram Uddin Ahmed proposed that the NBR should set duty on import of capital machinery and raw materials to 1 per cent, in
termediate raw materials to 3 per cent, raw materials which are produced in the country to 10 per cent and finished goods to 25 per cent.
He also demanded increase of the tax-free income ceiling to Tk 2.75 lakh for women taxpayers and Tk 3.25 lakh for physically disabled people.
He also demanded the NBR revise the slabs and rate of wealth tax.
Bangladesh Chamber of Industries president AK Azad suggested that the government should set an interest rate ceiling on savings for banks to reduce the existing higher interest rate on loans.
He also demanded withdrawal of duty and VAT on import of newsprint for the newspaper industry saying that most of the newspapers were becoming losing concerns due to higher taxes on newsprint.
Bangladesh Garment Manufacturers and Exporters Association president Atiqul Islam sought duty-free import of pre-fabricated building materials to facilitate relocation of the readymade garment units from shared buildings to be compliant with international fire safety standards.
Real Estate and Housing Association of Bangladesh president Mokarram Hossain Khan demanded scope for whitening undisclosed money through investment in the real estate sector and reduction of taxes for the sector.
Bangladesh Association of Software and Information Services vice-president Almas Kabir sought withdrawal of 15 per cent VAT on internet and data transmission.
Bangladesh Exporters Association president Salam Murshedy advocated a fiscal package for new investment.
Association of Mobile Telephone Operators of Bangladesh demanded withdrawal of tax on mobile SIM in the next budget.
The FBCCI in its written proposals, formulated on the basis of the suggestions put forward by different trade bodies across the country, demanded the NBR keep at least 30 per cent to 40 per cent difference of taxes between imported finished products and locally manufactured ones to make the local industries competitive.
It also urged the NBR to bring commercial activity of non-governmental organisations under tax net.
It also sought incentives for women entrepreneurs and an increase of VAT-free transaction ceiling and continuation of package VAT for small business.
The FBCCI also sought tax rebate for the prioritised sectors including power, infrastructure development, environment protection, human resource development, agriculture and rural industry, small poultry, hatchery, dairy farm and for setting industries in the country’s underdeveloped regions.
Finance minister AMA Muhith, state minister for finance and planning MA Mannan, NBR chairman Ghulam Hossain, Bangladesh Tariff Commission chairman Iqbal Khan Chowdhury, Foreign Investors’ Chamber of Commerce and Industry president Rupali Chowdhury, Bangladesh Ceramic Wares Manufacturers Association president Sirajul Islam Molla, Bangladesh Furniture Industry Owners Association president KM Akhtaruzzaman, Bangladesh Plastic Manufacturers and Exporters Association president Jashim Uddin and Dhaka Chamber of Commerce and Industry president Shahjahan Khan spoke at the meeting, among others.
-With New Age input
