The Dhaka Chamber of Commerce & Industry
(DCCI) today proposed to reduce the corporate tax rate by 2.5 percent for
both the listed and non-listed companies to become competitive in this
region.

The corporate tax rate is now 22.5 percent for the listed companies and 30
percent for the non-listed companies.

DCCI President Rizwan Rahman made the proposal when the DCCI placed a
total of 40 recommendations for the upcoming national budget for FY23 before
the Chairman of the National Board of Revenue (NBR) Abu Hena Md Rahmatul
Muneem at a pre-budget discussion meeting today held at NBR Bhaban in the
capital.

Meanwhile, the DCCI Chief proposed to increase the tax free income limit
for the individual tax payers from existing Taka 3 lakh to Taka 4 lakh
considering the increasing inflation and cost of living.

He said that about 27 lakh tax payers regularly submit their returns on
average every year which is very nominal for an economy like Bangladesh.

“The NBR should take a long term strategic plan to increase the number of
tax payers up to at least 8 million in next 10 years,” he added.

Rizwan also underscored the importance of full automation of overall
taxation system.

He proposed to slash tax on income of corporate dividend from existing 20
percent to 10 percent. “It will encourage the local investors to re-invest as
well as boost efficiency in the stock market,”

Currently businesses that have an annual turnover of Taka 3 crore are
exempted for VAT. But, he recommended to increase this turnover limit to Taka
4 crore in the next budget and also requested to impose turnover tax based on
product’s value addition or profit margin.

The DCCI President also recommended minimizing lengthy process of getting
bond license for leather goods and footwear industry. Moreover, he suggested
giving bond renewal facility for at least 3 years to these sectors like the
RMG sector.

He also demanded tax exemption on locally produced machineries and
components for electric vehicle charging stations in the country in order to
promote sustainable and environment friendly automobile industry within the
country.

The DCCI President also stressed on easy and business friendly taxation
system, increasing tax and VAT net, full automation of tax management,
product diversification, encouraging local industrialization and an
investment friendly environment aiming to attain the goal of economic
development.

The NBR Chairman said that trade organizations can arrange knowledge
sharing activities to make their members aware of various policies that NBR
takes related to revenue and duty structure.

He said, “Before the LDC graduation, our private sector has to enhance
their capacity, because after graduation many facilities that they are
enjoying now will not be available then. To create a business friendly
environment in the country, NBR is working relentlessly while the NBR is also
trying simultaneously to increase the tax net,”

Muneem said in the last two years, the government was more flexible in
terms of tax rate to boost GDP and employment generation and this year the
budget will be made considering macro policy perspective.