The Federation of Bangladesh Chambers of Commerce and Industry on Thursday placed a set of budget proposals containing 422 demands related to income tax, customs duty and value-added tax to the government for the upcoming national budget for 2013-2014 fiscal year.
The demands included reduction of customs duty on import of capital machinery, raw materials, reduction of tax at source on export, continuation of tax holiday for some sectors, increase of tax-free income ceiling for individual taxpayers and introduction of multi-layer VAT rate.
At the 34th budget consultative committee meeting of the National Board of Revenue held at Sonargaon Hotel in the capital, FBCCI president Kazi Akram Uddin Ahmed placed the proposals while finance minister Abul Maal Abdul Muhith was present as chief guest at the meeting.
The NBR and the FBCCI jointly organised the meeting wherein business people got last chance to place their demands.
‘We demand reduction of customs duty on import of capital machinery to 1 per cent from the existing 3 per cent and 1 per cent cut on raw materials from the existing 5 per cent to help local industries to grow. That will ultimately contribute to increase of investment, employment generation and revenue collection,’ said Akram.
He also suggested that a reduction in duty on the import of intermediate raw materials, not produced in the country, to 3 per cent instead of the existing 12 per cent.
Import duty can be imposed on intermediate raw materials, produced on the local market, at the rate of 12 per cent, he said.
Akram said that tax administration should increase the tax-free income threshold for individuals to Tk 2,40,000 from Tk 2,00,000 considering high pressure of inflation and an increase in living cost.
He also recommended a reduction of tax at source on export to 0.6 per cent from the existing 0.8 per cent.
The FBCCI, apex trade body in the country, also suggested a significant reduction of corporate tax rate for both the categories of publicly-listed companies and non-listed companies.
Responding to the proposals, the finance minister said the government would consider the issues while finalising the budget documents.
He, however, said that corporate tax rate would be unchanged in the next budget.
Bangladesh Garment Manufacturers and Exporters Association president Md Atiqul Islam demanded that the government allocate Tk 300 crore in the next budget and give loan to the RMG factory owners at 5 per cent from that fund to shift their factories from shared buildings that are not compliant.
He also demanded withdrawal of existing tax at source at the rate of 0.8 per cant on export of apparel items and fix the tax on the price of cutting and making of products.
Bangladesh Knitwear Manufacturers and Exporters Association vice-president Mohammad Hatem Ali demanded an increase of incentive provided for exporting in new markets and increase the rate of incentive to 5 per cent from existing 2 per cent.
Bangladesh Textile Mills Association president Jahangir Alamin demanded reduction of income tax to 10 per cent from existing 15 per cent for the primary textile sectors and continue the facility for five more years.
He also requested the NBR to provide tax holiday facility for the textile industries to be set up in Dhaka, Gazipur, Narayanganj, Narsingdi and Mymensingh areas.
Bangladesh Chamber of Industries president AK Azad suggested that the government to expedite the construction process of the proposed seven special economic zones in the country so that factories could be shifted to the SEZs.
Dhaka Chamber of Commerce and Industry president Sabur Khan recommended widening of tax net to reduce tax burden on the existing taxpayers.
He proposed to make taxpayers identification number mandatory for receiving trade licence and export and import licence.
The FBCCI proposals included continuation of tax holiday facility for fisheries, poultry, dairy sectors for 12 more years, expansion of tax holiday facility to the industries to be set up at districts level, withdrawal of advance income tax on cash incentives, reduction of minimum tax on turnover of the companies irrespective of profit or loss to 0.25 per cent from the existing 0.5 per cent.
The trade body also proposed to bring the non-government organisations under tax net.
Industries minister Dilip Barua, who was also present at the meeting, recommended a reduction of the gap of duties between import of finished goods and raw materials for industries.
He also suggested a safeguard in the budget to protect local industries.
NBR chairman Ghulam Hussain presided over the meeting while FBCCI vice-president Helal Uddin, director Abdul Haque, adviser Manjur Ahmed, former FBCCI first vice-president Mostafa Azad Chowdhury Babu and vice-president Jashim Uddin, among others, spoke.
-With New Age input
