Economic Reporter :
Dhaka Chamber of Commerce and Industry (DCCI) has proposed increasing the individual tax free income limit to Tk 3 lakh from the existing Tk 2.5 lakh in the budget for fiscal year 2018-19 (FY19).
Placing a set of proposals for the upcoming budget at a press conference on Saturday, the DCCI also proposed gradual decrease in Corporate Tax rate at a progressive rate 5 percent, 7 percent and 10 percent respectively in FY19, FY20 and FY21.
DCCI president Abul Kasem Khan proposed slashing the rate of surcharge and said surcharge on net wealth up to Tk 5 crore should be zero, up to Tk 15 crore it should be 10 per cent, up to Tk 25 crore 15 percent, up to Tk 35 crore 20 percent and above Tk 35 crore the surcharge should be 25 percent.
Khan also proposed for introducing classified tax card like Green Card, Green Plus Card, Silver Card, Gold Card, Gold Plus Card and Platinum Card to encourage taxpayers.
He also proposed allowing tax rebate on RnD (Research and Development) spending and said 5 percent of gross income of a company should be considered as RnD.
DCCI president said smart phone, tab and all mobile phones are skill tools and proposed considering acquisition cost of smart phone, tab and all mobile phones, maximum Tk 25,000 as allowable investment for tax exemption.
For creating an enabling environment for sustainable economic growth, the DCCI in its proposal said taxation system should be made market competitive. Steps need to be taken to increase contribution from other tax zones, it said.
Tax-GDP ratio needs to be increase from 11.09 percent to 14 percent and transparency should be maintained in tax collection and tax payment system should be automated, it added.
Khan said as per NBR data, currently 32 lakh people have TIN and of them, only about 20 lakh submit tax return.
In order to expand tax net and increase tax return submission, the NBR should have intensive discussion with business chambers and trade associations, conduct ‘Pilot Survey’ in urban and rural areas to indentify new tax payers, bring service sector under tax net and ensure online tax return submission facilities, he added.
He said number of BIN holders is 8 lakh 50 thousand and only 4 percent of them pay VAT. To expand VAT net, the NBR needs to continue Package VAT, increase the limit of Turnover Tax to Tk 1.0 crore 20 lakh, ensure transparency and accountability in VAT collection and introduce VAT SMART Card like Tax Card.
The DCCI has also placed separate proposals for energy and power, infrastructure development, industry, financial market, blue economy, SDG 2030 and Public-Private Partnership (PPP).
Dhaka Chamber of Commerce and Industry (DCCI) has proposed increasing the individual tax free income limit to Tk 3 lakh from the existing Tk 2.5 lakh in the budget for fiscal year 2018-19 (FY19).
Placing a set of proposals for the upcoming budget at a press conference on Saturday, the DCCI also proposed gradual decrease in Corporate Tax rate at a progressive rate 5 percent, 7 percent and 10 percent respectively in FY19, FY20 and FY21.
DCCI president Abul Kasem Khan proposed slashing the rate of surcharge and said surcharge on net wealth up to Tk 5 crore should be zero, up to Tk 15 crore it should be 10 per cent, up to Tk 25 crore 15 percent, up to Tk 35 crore 20 percent and above Tk 35 crore the surcharge should be 25 percent.
Khan also proposed for introducing classified tax card like Green Card, Green Plus Card, Silver Card, Gold Card, Gold Plus Card and Platinum Card to encourage taxpayers.
He also proposed allowing tax rebate on RnD (Research and Development) spending and said 5 percent of gross income of a company should be considered as RnD.
DCCI president said smart phone, tab and all mobile phones are skill tools and proposed considering acquisition cost of smart phone, tab and all mobile phones, maximum Tk 25,000 as allowable investment for tax exemption.
For creating an enabling environment for sustainable economic growth, the DCCI in its proposal said taxation system should be made market competitive. Steps need to be taken to increase contribution from other tax zones, it said.
Tax-GDP ratio needs to be increase from 11.09 percent to 14 percent and transparency should be maintained in tax collection and tax payment system should be automated, it added.
Khan said as per NBR data, currently 32 lakh people have TIN and of them, only about 20 lakh submit tax return.
In order to expand tax net and increase tax return submission, the NBR should have intensive discussion with business chambers and trade associations, conduct ‘Pilot Survey’ in urban and rural areas to indentify new tax payers, bring service sector under tax net and ensure online tax return submission facilities, he added.
He said number of BIN holders is 8 lakh 50 thousand and only 4 percent of them pay VAT. To expand VAT net, the NBR needs to continue Package VAT, increase the limit of Turnover Tax to Tk 1.0 crore 20 lakh, ensure transparency and accountability in VAT collection and introduce VAT SMART Card like Tax Card.
The DCCI has also placed separate proposals for energy and power, infrastructure development, industry, financial market, blue economy, SDG 2030 and Public-Private Partnership (PPP).
