Dhaka chamber for cuts in corporate tax rate

The Dhaka Chamber of Commerce & Industry (DCCI) yesterday urged the revenue administration to cut the corporate tax for listed and non-listed companies by 2.5 percentage points in the next fiscal year (FY) of 2022-23.

Currently the tax rate for companies listed on the stock exchanges is 22.5 per cent while non-listed ones 30 per cent.

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"If the government cuts the corporate tax rate, it will boost local and foreign investment," said DCCI President Rizwan Rahman.

The chamber placed a total of 40 recommendations for the upcoming national budget of FY 2022-23 during a meeting with National Board of Revenue Chairman Abu Hena Md Rahmatul Muneem at the latter's office in the capital.

Rizwan also proposed slashing the tax on income of corporate dividend from the existing 20 per cent to 10 per cent.

He said it would encourage local investors to go for reinvestments as well as boost the efficiency of the stock markets.

Rizwan also recommended that the annual turnover tax exemption for businesses be increased to turnovers of up to Tk 4 crore from the existing Tk 3 crore.

He also requested to impose turnover tax based on value addition to products or profit margins.

The DCCI chief proposed to increase the tax free income limit for individual taxpayers from the existing Tk 3 lakh to Tk 4 lakh taking into consideration rising inflation and living costs.

He said about 27 lakh taxpayers regularly submit their returns on an average every year, which was very nominal for an economy like Bangladesh's.

Only 37 per cent of 62.77 lakh registered taxpayers filed income tax returns until January 2 this year, the last day for filing income and wealth statements by individuals, according to the NBR.

BCI PROPOSALS

Meanwhile, in its budget proposal, Bangladesh Chamber of Industries (BCI) called for formulating policies for financing from the special fund created by the government to encourage young entrepreneurs.

In absence of proper policies, the benefit of the fund could not be realised, said BCI President Anwar-ul Alam Chowdhury (Parvez).

It suggested full digitisation of tax systems to modernise the tax administration and encourage people to comply with rules.

The BCI proposed tax rebate for firms that will employ persons with disabilities and transgender people.