DCCI urges fair business competition to boost private investment

25pc corporate tax demanded instead of 30pc

DCCI President Abul Kasem Khan said private investment needs to be scaled-up to 29 per cent from the current level of 22 per cent to boost private investment in Bangladesh. 

He said, “We need to improve our infrastructure, energy situation, efficiency in the institutional  framework and human resources to improve the ranking of the country in business competitiveness.”
He also said it is needed to improve its position in business competitiveness.
The Board of Directors of Dhaka Chamber of Commerce and Industry (DCCI) led by its President Abul Kasem Khan called on Finance Minister of Bangladesh Abul Maal Abdul Muhith, at Ministry of Finance yesterday.  
DCCI president also said Bangladesh spends 2.8 per cent of its GDP for the infrastructure development while Vietnam is spending 10 per cent, China 9 per cent, India 5 per cent, Sri Lanka 5 per cent and Philippines 5 per cent.
DCCI President proposed Tk 3, 50,000 as individual tax free income limit from the next budget. For publicly traded company he also proposed 25 per cent corporate tax instead of 30 per cent. 
He also urged to re-introduce the tax-free facility on the profit component retained by the companies for re-investment.
He proposes to keep the VAT rate at a certain level so that the rate does not fuel any price escalation. NBR has given assurance that the introduction will not cause any price increase of common products. 
All necessary efforts can be brought under consideration so that this assurance by NBR is maintained, he added.
Talking about payment system, he said, “Distribution of Electronic Cash Register (ECR) machines across the country will not be feasible rather VAT collection could be brought under a new payment E-ecosystem whereby all VAT collectors can use mobile network gateway” 
He also proposes for VAT free annual turnover up to Tk 80 lakh and 3 per cent turnover tax on annual turnover from Tk 50 lakh to Tk 1.2 crore.
Explaining the consignment challenges, DCCI director Humayun Rashid said, “I imported some capital machineries and it took 66 days to release those consignments from Mongla port due to lengthy procedures”
DCCI director Salim Akhter Khan said due to high corporate tax rate entrepreneurs feel discouraged to re-invest their profit into the same business or in its expansion. 
He requested the finance minister to reduce the corporate tax rate.
In reply to DCCI director Humayun Rashid, Finance Minister Abul Maal Abdul Muhith said government will consider reducing procedures regarding release of capital machineries from the ports. 
He also said that government will bring down the cost of sending remittance in order to increase its volume. The number of our tax payers is now 1.6 million and 2.8 million people have their TIN registration. 
Commenting on higher lending rate the finance minister said government may think about to reduce savings certificate rate but not less than the market rate. 
He appreciated the idea of establishing ‘National Infrastructure Development & Monitoring Advisory Authority (NIDMAA) proposed by DCCI President Abul Kasem Khan and said that government will consider his proposal for speedy implementation of large infrastructure projects.
DCCI Vice President Hossain A Sikder, Riyadh Hossain, Imran Ahmed, Atique-e-Rabbani, KMN Manjurul Hoque, KH Rashedul Ahsan and Secretary General AHM Rezaul Kabir were present among others.

DCCI urges fair business competition to boost private investment

25pc corporate tax demanded instead of 30pc

DCCI President Abul Kasem Khan said private investment needs to be scaled-up to 29 per cent from the current level of 22 per cent to boost private investment in Bangladesh. He said, We need to improve our infrastructure, energy situation, efficiency in the institutionalframework and human resources to improve the ranking of the country in business competitiveness. He also said it is needed to improve its position in business competitiveness. The Board of Directors of Dhaka Chamber of Commerce and Industry (DCCI) led by its President Abul Kasem Khan called on Finance Minister of Bangladesh Abul Maal Abdul Muhith, at Ministry of Finance yesterday. DCCI president also said Bangladesh spends 2.8 per cent of its GDP for the infrastructure development while Vietnam is spending 10 per cent, China 9 per cent, India 5 per cent, Sri Lanka 5 per cent and Philippines 5 per cent. DCCI President proposed Tk 3, 50,000 as individual tax free income limit from the next budget. For publicly traded company he also proposed 25 per cent corporate tax instead of 30 per cent. He also urged to re-introduce the tax-free facility on the profit component retained by the companies for re-investment. He proposes to keep the VAT rate at a certain level so that the rate does not fuel any price escalation. NBR has given assurance that the introduction will not cause any price increase of common products. All necessary efforts can be brought under consideration so that this assurance by NBR is maintained, he added. Talking about payment system, he said, Distribution of Electronic Cash Register (ECR) machines across the country will not be feasible rather VAT collection could be brought under a new payment E-ecosystem whereby all VAT collectors can use mobile network gateway He also proposes for VAT free annual turnover up to Tk 80 lakh and 3 per cent turnover tax on annual turnover from Tk 50 lakh to Tk 1.2 crore. Explaining the consignment challenges, DCCI director Humayun Rashid said, I imported some capital machineries and it took 66 days to release those consignments from Mongla port due to lengthy procedures DCCI director Salim Akhter Khan said due to high corporate tax rate entrepreneurs feel discouraged to re-invest their profit into the same business or in its expansion. He requested the finance minister to reduce the corporate tax rate. In reply to DCCI director Humayun Rashid, Finance Minister Abul Maal Abdul Muhith said government will consider reducing procedures regarding release of capital machineries from the ports. He also said that government will bring down the cost of sending remittance in order to increase its volume. The number of our tax payers is now 1.6 million and 2.8 million people have their TIN registration. Commenting on higher lending rate the finance minister said government may think about to reduce savings certificate rate but not less than the market rate. He appreciated the idea of establishing National Infrastructure Development Monitoring Advisory Authority (NIDMAA) proposed by DCCI President Abul Kasem Khan and said that government will consider his proposal for speedy implementation of large infrastructure projects. DCCI Vice President Hossain A Sikder, Riyadh Hossain, Imran Ahmed, Atique-e-Rabbani, KMN Manjurul Hoque, KH Rashedul Ahsan and Secretary General AHM Rezaul Kabir were present among others.