Economic Reporter :
The Board of Directors of Dhaka Chamber of Commerce & Industry (DCCI) led by its President Hossain Khaled called on Finance Minister Abul Maal Abdul Muhith, MP at his secretariat on Tuesday.
DCCI President recommended for continuing package VAT till the year 2021 which can be increased by 10 per cent year on year basis.
After 2021 the DCCI recommended 3 per cent VAT for micro and small enterprises, 5 per cent for medium enterprises and 7 per cent for large enterprises instead of proposed 15 per cent VAT. DCCI thus proposes Tk. 15000 package VAT for Dhaka and Chittagong City Corporation area till 2021.
Hossain Khaled also requested for allowing investment of undisclosed money in the productive sector or housing sector at a cost of high rate of tax on that undisclosed or undeclared money.
During the meeting with the Finance Minister, DCCI delegate urges for increasing the individual income tax limit from existing BDT 2,50,000 to BDT 3,50,000. They also recommended to widen tax net and organize tax fairs in Upazila level to attract tax payers.
The DCCI delegate proposed for reducing corporate tax rate to 35 per cent from present 45 per cent. DCCI President recommended for 2 per cent turnover tax on yearly income of less than 10 million taka.
The said it will encourage SMEs to give VAT regularly. The DCCI recommended for announcing country’s automotive sector as the import substitute industry and reducing tax in this sector. He also recommended to encourage import of brand new or luxury vehicles to double government’s revenue from this sector.
“To create 1 billion dollar export market of agro products we have diversify our agricultural products and we need to have more value addition in this sector,” Hossain Khaled said.
“To achieve the target of 50 billion dollar export earnings from RMG sector by the year 2021 we need to create import substitute backward linkage industry,” he added.
In response the DCCI request, Finance Minister said that Bangladesh has remarkably improved a lot in poverty alleviation after independence. He urged the private sector to jointly work with the government to alleviate poverty from the country by creating more employment opportunities.
