Raise tax-free income ceiling to Tk 3.5 lakh
Dhaka Chamber urges NBR
Staff Reporter
Dhaka Chamber of Commerce and Industry (DCCI) yesterday urged the National Board of Revenue (NBR) to raise the ceiling of tax-free income to Tk 3.5 lakh from the existing Tk 2.50 lakh in the next budget considering the growing living cost and inflation.
The DCCI president also proposed raising the tax exemption threshold for women and senior citizens, aged over 65 years, to Tk 4 lakh from the existing Tk 3 lakh. On the other hand, the trade body proposed raising lthe tax exemption threshold for the physically-challenged people to Tk 4.25 lakh from Tk 3.75 lakh. The NBR has also been asked to fix minimum income tax at Tk 3,000, Tk 2,000 and Tk 1,000 based on areas.
At the meeting chaired by the NBR chairman Nojibur Rahman, Khaled placed 39 specific proposals to the NBR ahead of the next national budget. He proposed to widen the tax net to collect more revenues in the nest fiscal year.
It is very sad and disappointing that only 11 lakh people have Taxpayer Identification Number (TIN) in a country of 16 crore people with 3 crore wage earners. So there is no alternative to expansion of the tax net, DCCI president Hossain Khaled told a pre-budget discussion with the NBR chairman at its conference room in the capital.
The trade body suggested forming a special task force under the Tariff Commission involving representatives from public and private sectors to ensure the interests of both the importers of products and local producers.
It also suggested the NBR for expansion of providing tax cards with some privileges for each taxpayer so that people become encouraged to pay more tax. It proposed to turn these tax cards into smart cards which would store all necessary information related to business. The chamber also suggested continuation of tax rebate in equipment import for developing energy and power sector in the next fiscal year.
The DCCI proposals also include reducing corporate tax rate for merchant bank to 35 percent from the existing 37.5 per cent, reducing source tax on general purchase and sales to 2.5 per cent from five percent, easing Duty Draw Back method in exporting jute products, recognising automobile and automotive industry as import substitute industry, and keeping port charges, demurrage and penalties in tolerable level in export and import of goods.
Assuring that the NBR will consider the proposals of the trade body, its chairman Md Nojibur Rahman urged businesspeople to submit the money of VAT that they collected from subscribers during the Pahela Baishakh festival to the NBR soon.
