Compulsory tax likely on trade licencees: NBR
The Dhaka Chamber of Commerce and Industry on Saturday demanded a tax waiver for new entrepreneurs for at least three years as an incentive for new businesses which would also help in employment generation in the country.
At a pre-budget discussion with the National Board of Revenue at its conference room in the city, the DCCI also suggested that the NBR should increase the tax-free income ceiling for individual to Tk 3,00,000 from the existing Tk 2,00,000 considering the current inflationary pressure and increased cost of living.
‘New entrepreneurs hardly make any profit in the first three years from beginning of business. The tax waiver for three years for new entrepreneurs will encourage more people to enter into business that will also create more employment in the country,’ said DCCI president Sabur Khan.
Many countries around the world provide such facility to the new entrepreneurs, he said.
In response, NBR chairman Ghulam Hussain said that the revenue administration would consider the proposal as it was also considering doing something for fresh and women entrepreneurs.
The NBR chairman said that the revenue collection target in the next fiscal year for 2013-2014 might be increased to Tk 1,36,000 crore with 21 per cent growth from Tk 1,12,259 crore for the current fiscal year.
Though the target is not finalised yet, the government fixed the revenue collection target in the ongoing sixth five-year plan for the upcoming fiscal year.
‘I do not think that the revenue board will be able to collect such a huge amount of revenue with 21 per cent growth due to the existing circumstances particularly political unrest in the country,’ he said.
But the revenue collection may be increased by alternative means including increasing efficiency of the revenue officials, attracting more investment from foreign and local investors boosting economic activities including import, he said.
The NBR is also considering imposing compulsory minimum tax for trade licence holders and export-import licence holders.
They must have to pay tax at minimum rate irrespective of their status of doing business, he said.
The DCCI recommendations also included depositing the government income and savings at banks at lower interest rate to bring down interest rate at single digit.
The chamber also recommended increase of tax-free income limit for female and elderly citizens to Tk 3.5 lakh from existing Tk 2.25 lakh and for disabled people to Tk 3.75 lakh from Tk 2.75 lakh.
It also suggested that the NBR should reduce the rate of surcharge on wealth to 5 per cent from the existing 10 per cent and increase the ceiling of wealth for surcharge to Tk 5 crore from existing Tk 2 crore.
The trade body also recommended reduction of corporate tax on listed companies from 27.5 per cent to 15 per cent to attract non-listed companies to be listed in the stock markets and extending tax holiday for fisheries, poultry and dairy firms, and handicraft sectors till 2025 in a bid to boost investment and local industries.
Sabur Khan demanded that the limit of turnover tax should be increased to Tk 1 crore from Tk 70 lakh and fix up the turnover tax at the rate of 2 per cent.
He suggested that the NBR should impose additional duty and tax on import of finished goods which are produced in the country to protect local industries.
DCCI senior vice-president Nessar Maksud Khan, vice-president Absar Karim Chowdhury, directors ASM Mohiuddin Monem, Haider Ahmed Khan, Abu Hurairah, Hossain A Sikder, Shoaib Choudhury and Khairul Majid Mahmud, among others, spoke at the meeting.
NBR members Bashir Uddin Ahmed, Farid Uddin, Md Shahjahan, Md Alauddin, Jahangir Hossain, among others, were present.
-With New Age input
