Kazi Zahidul Hasan :
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has demanded a business and investment friendly budget to boost economic activities and GDP growth.
It has also urged the government to pay importance to reduce the corporate tax for the interest of local enterprises and industries to maintain their competitiveness in global market.
“We need a business and investment friendly budget as well as business friendly revenue management system to promote investment and growth,” FBCCI President M Shafiul Islam Mohiuddin told The New Nation on Saturday.
He said, the budget should pursue a progressive tax policy and offer tax rebates for productive sectors so that local industries can maintain their edge in global arena. “Such measures can also attract new investment and create jobs”.
In this context, Mohiuddin proposed for reducing the corporate tax by 2.50 percent for fiscal year 2018-19 for all categories of businesses and a long term tax policy for the local enterprises and export-oriented industries.
“High corporate tax rate discourages investment. So, it should be cut by 2.50 percentage points to make it reasonable,” he added.
He has also demanded increase of the individual tax-free income threshold to Tk 3.50 lakh from the current Tk 2.5 lakh, as living cost has gone up.
FBCCI has already placed a number of budget proposals relating to VAT, import duty and income tax to the NBR. Leaders of the apex trade body also shared those with Finance Minister and NBR high-up for consideration and incorporation in the final budget document.
“We hope proposals of the business community should be reflected in the upcoming national budget. If our proposals get incorporate, it would help enhance NBR’s revenue earnings and give a boost to economic activities in the country,” said Mohiuddin.
The FBCCI leader also suggested for taking steps to introduce business-friendly tax services, to expand the tax net, ensure transparency in tax and VAT collection and simplify the tax payment system.
He also urged the government to allocate adequate budgetary funds for developing necessary infrastructure and timely completion of mega development projects.
“The government should give focus on infrastructure development and to improve port facilities to promote investment climate and import and export business. A tangible progress in infrastructure development and trade facilitation are necessary to attract foreign direct investment,” said Mohiuddin.
