The Metropolitan Chamber of Commerce and Industry (MCCI) yesterday proposed to reduce the corporate tax rate in the budget for the fiscal year 2019-20.
They said if the tax burden on the private companies is reduced, it will help increase the usable profit and thus scopes will be created for re-investment. This will also help generating newer employments as well as boosting the GDP growth, they added.
The MCCI leaders placed these proposals before the National Board of Revenue (NBR) yesterday at a pre-budget meeting held at its conference room.
Chaired by NBR Chairman Md Mosharraf Hussain Bhuiyan, MCCI vice president Glam Moinuddin, and other leaders of MCCI and NBR high officials were present on the occasion.
MCCI Tariff and Taxation Sub Committee chairman Adib H Khan said although the corporate tax rate has been fixed at 25%, but most of the companies have to pay tax at 35% rate. “Because, most of the companies are not listed with the capital market and that’s why those have to pay tax at a high rate,” he said.
He also suggested for reducing the corporate tax rate for generating newer employments and boosting investment.
Responding to their demands, the NBR chairman said the corporate tax rate in Bangladesh is not so high compared to the neighboring countries, but these companies have to pay tax at 35% since most of those are not listed with the capital market.
“We want to do such thing in the next budget through which we’ll be able to keep the momentum of revenue collection alongside moving forward the country’s industrialization. This budget will focus on expansion of trade and commerce and industrialization.” he added.
The MCCI in their budget proposals demanded of the government to avoid repeated taxation and double taxation on the same dividend of a company.
They also demanded for reducing the import duty on basic raw materials and intermediary raw materials to promote the locally produced products.
Besides, the NBR also held pre-budget meetings today with the Bangladesh-India Chamber of Commerce, Bangladesh-China Chamber of Commerce, Bangladesh Women Chamber of Commerce and Industry, Women Entrepreneur Network for Development Association, and Anti Tobacco Media Alliance.
The Women Chamber in their budget proposals demanded for raising the tax-free income ceiling for female entrepreneurs to Tk4 lakh while giving tax holiday for three years to the female entrepreneurs in case of starting their businesses.
