DCCI urges tax administration to cut back company tax

| Replace:
March 12, 2021, 8:28 p.m.

The Dhaka Chamber of Commerce and Business (DCCI) on Wednesday proposed a gradual discount in company tax charges, from the subsequent fiscal yr (AF).

As per plan, the chamber requested a 2.5% discount in FY2021-22, adopted by 5.0% in FY2022-23 and seven.5% in FY2023-24.

The discount within the company tax charge is critical to stimulate personal funding, DCCI Chairman Rizwan Rahman mentioned through the presentation of the proposals at a pre-budget assembly, held on the premises of the Nationwide Board of Income (NBR).

He identified that the company tax charge in Bangladesh varies between 32.5 % and 45 %, whereas the typical tax charge is 25.2 % in India, 29 % in Pakistan, 28 % in Sri Lanka and 20 % in Vietnam, Indonesia and Myanmar.

He additionally known as for a tax profit for the analysis and improvement actions of firms, the revision of the minimal tax provision below Article 82C, the discount of the tax charge on gross receipts of firms and automation of earnings tax and VAT providers.

Mr Rahman additionally advised lowering the time restrict for granting VAT refunds to companies to at least one month as an alternative of three months, eradicating the discretion of VAT officers within the discipline beneath the ranks of deputy commissioner or deputy commissioner. deputy director.

He proposed that companies that pay VAT on the 15 % charge be exempt from paying VAT at supply.

The president of the DCCI additionally proposed to exempt the advance tax (AT) on the import of commercial uncooked supplies and equipment gear, as firms need to pay greater prices to gather VAT certificates on this regard. .

He proposed to extend the turnover restrict for firms to Tk 40 million from Tk 30 million at the moment.

Concerning the banking sector, the president of the DCCI mentioned that excise responsibility is imposed twice on firms whereas acquiring loans from banks.

“Companies should first pay the excise responsibility on the mortgage account after which deposit the mortgage quantity into one other account,” he mentioned, urging authorities to resolve the problem within the subsequent funds.

Within the fairness market, Mr Rahman known as for a five-year tax vacation to draw funding in solely new infrastructure initiatives.

He additionally requested that the VAT exemption be maintained for the sale of jute merchandise on the native market.

The chief of the DCCI demanded incentives for the leather-based sector an identical to these granted to the ready-to-wear sector.

The leather-based industries, benefiting from a bonded warehouse, should renew their surety licenses each two years in comparison with three years for the RMG sector, he famous.

There isn’t a distinct benefit for the leather-based industries having the inexperienced constructing certification, which the RMG sector has loved, he added.

The president of the DCCI additionally proposed a discount in company tax charges for leather-based industries benefiting RMG industries. He advised providing tax advantages to inexperienced firms within the leather-based sector and permitting them to resume bond licenses each three years.

In response, NBR Chairman Abu Hena Md Rahmatul Muneem, who chaired the assembly, mentioned that they’re designing tax measures not solely targeted on producing earnings, but in addition creating new sources of earnings.

“Constructing belief between companies and taxpayers is necessary to simplify the system that doesn’t but exist,” he added.

Appreciating the proposals of the DCCI, the president of the NBR mentioned that it was potential to evaluate some tax measures, specifically the simplification of the tax cost course of.

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