Al Amin :
The government is likely to bring some changes in the existing tax structure in the next budget to create an investment-friendly environment and to facilitate domestic manufacturers.
It will also adopt a tax policy to discourage the import of unnecessary, harmful and luxury goods.
On the other hand, the government may also cut some benefits of the businesses, who are taking tax benefits by showing income from another sector.
Advance Income Tax (AIT) on imported fruits, some vegetables, wine and perfume is likely to increase in the proposed budget, officials of the National Board of Revenue (NBR) said.
They said encouraging the entrepreneurs of the local cement industry AIT on import of raw material clinker for cement is going to be reduced from the existing 3 per cent to 2 per cent and AIT on shipping industry may be reduced from 2 per cent to 1 per cent.
Besides, the government is going to propose tax exemption agro-based industries for next 10 years in order to encourage the entrepreneurs of the sector.
In line with the long standing demand of the traders, some concessions have been kept in the budget for promotional expenses for the expansion of the company’s products.
Currently, the companies are enjoying 0.5 per cent tax exemption on promotional expense. It is likely to increase to 1 per cent.
Businesses, however, said that the proposed 1 per cent is not sufficient as the companies are expending more than 5-10 per cent in some cases and they have to count additional taxes for the rest of the expenditure.
Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The New Nation, “The promotional expense should be at least 2 per cent at the moment for the expansion of the RMG sector.”
On the other hand, NBR officials said that the companies are evading taxes by showing huge amount of money as expenditure in the sector due to the lack of strong monitoring.
Besides, the government is going to impose additional taxes on income of the super-rich. The people, who have assets worth Tk 10 crore, will have to pay an additional 10 per cent levy (surcharge), 20 per cent on above Tk 20 crore, 30 per cent on above Tk 50 crore.
On the other hand, the development and expansion of the information and technology (IT) sector will be given importance in the next budget.
The manufacturers of the sector, especially computer, laptop and related accessories makers, are likely to get special facilities in the upcoming fiscal year as the government wants a massive expansion of the sector like mobile industry.
Engineer Liakat Ali, Chief Executive Officer of Walton’s computer manufacturing wing, told The New Nation, “IT sector is a potential sector of the country. Like mobile industry, manufacturing of the computer and laptop has yet to be gained popularity due to proper tax policy.”
“Logical tax exemption is needed to attract the local and foreign investors in the sector,” he added.
