Foreign Investors’ Chamber of Commerce and Industry and Bangladesh Chamber of Industries on Saturday demanded that the National Board of Revenue withdraw the provision of imposition of a minimum tax at the rate of 0.5 per cent on companies on the basis of total turnover irrespective of profit or loss. The foreign investors, however, recommended imposing minimum tax on companies’ profit instead of turnover at the rate of 0.5 per cent.
The BCI also demanded withdrawal of duty on import of capital machinery for all kinds of industry.
At separate pre-budget meetings with the NBR, the FICCI also requested the NBR to remove anomalies related to valuation in imports and improve value-added tax collection mechanism.
‘Income tax should be based on income, not on turnover. But the provision ignored this fundamental principles of income tax,’ FICCI president Syed Ershad Ahmed said.
Both profit and loss are common phenomenon for a commercial enterprise. But business houses not making profit are compelled to pay minimum tax under the provision, he said.
The trade body also recommended the NBR to allow 6 per cent of total turnover as expense of technical know-how services instead of 8 per cent of total profit as the technology driven companies are to take huge technical know-how services.
The FICCI, apex trade body of foreign investors in the country, also recommended withdrawal of supplementary duty and VAT on new SIM card sales and allowing subsidy given on SIM sales as expense.
Currently mobile operators are to pay Tk 605.52 as SD and VAT on new SIM card sales but operators provide the cost as subsidy to the subscribers which is not allowed as expense.
They also demanded withdrawal of SD, regulatory duty and tariff value on import of SIM card considering the item as non-luxury goods and for smooth expansion of the telecommunication industry.
Currently, 20 per cent SD and 5 per cent RD are imposed on import of SIM card.
They also recommended the revenue board to allow 10 per cent tax rebate for the publicly listed banks, financial institutions and mobile operators who give dividend more than 20 per cent to attract more companies to be listed in stock markets.
The chamber also demanded reduction in the current corporate tax rate to 20 per cent for publicly-traded companies from the existing 27.5 per cent and to 25 per cent for the non-publicly-traded companies from the existing 37.5 per cent.
The FICCI also proposed an increase of tax-free income ceiling for individual to Tk 3,00,000 from the existing Tk 2,00,000 considering the high inflation and cost of living.
The FICCI also demanded introduction of zero per cent or reduced tax rate instead of 42.5 per cent for ‘offshore banking units’ in line with the international practice.
Offshore banking units are set up to provide local banking services to the exporters and foreign investors located in EPZs.
They said that the tax rate for offshore banking units ranges from 0-20 per cent in Asia pacific region.
BCI director Mohabbat Ullah in its budget proposal demanded withdrawal of duty on import of capital machinery for industries and reduction of duty on import of raw materials that are not produced in the country to 3 per cent from the existing 5 per cent.
Currently, export-oriented industries enjoy duty-free import of capital machinery while non-exported oriented entrepreneurs are to pay 3 per cent duty on import of capital machinery for industries and 5 per cent duty on import of raw materials that are not produced in the country.
The BCI also demanded for not imposing VAT or supplementary duty at production level for those products that enjoy VAT and supplementary duty-free facility in import stage.
The trade body also recommended rationalisation of duty structure for complete knock down, semi-knock down and complete built unit electronics products so that manufacturing industries can be grew in the country.
The BCI also demanded imposition of the highest duty on import of CBU television.
The BCI proposals includes 20 per cent cash incentive on export of plastic products, an increase of supplementary duty on import of CBU motorcycle to 60 per cent from existing 45 per cent, reduction of SD on import of CKD to 20 per cent from 30 per cent, an increase of tax-free income ceiling for individual to Tk 2,50,000 from Tk 2,00,000.
newagebd
-With New Age input
