Dhaka Chamber of Commerce and Industry (DCCI) Monday proposed to cut the VAT rate by more than half bringing it down to 7 per cent from 15 per cent as fixed in the new Value-Added Tax and Supplementary Duty Act-2012.
"Research and development activities need to be kept free from VAT and tax," said DCCI President Abul Kasem Khan at a pre-budget discussion between National Board of Revenue (NBR) and DCCI at NBR office in Dhaka, reports BSS.
DCCI placed a total of 49 budget recommendations for 2017-18 financial year to the NBR Chairman M Nojibur Rahman for government's consideration.
Abul Kasem Khan proposed Tk 3,50,000 as tax free income limit for the individual taxpayers and Taka 4,75,000 for wounded freedom fighters.
He suggested reducing corporate tax rate for merchant banks to 35 per cent from existing 37.5 per cent, 30 per cent for non public trade company, 22.5 per cent for public trade company and 32.5 per cent for brokerage operations.
The DCCI President underscored the need for tax exemption on company's profit which is re-invested in the same business to expedite local investment in the economy.
"For small traders, DCCI demands for 'NO VAT' up to Tk 5 million turnover and 3 per cent VAT for the turnover from above Tk 5 million to Tk 102 million," he added.
Abul Kasem Khan said VAT exemption on internet use will help foster the dream of being Digital Bangladesh soon.
"Frequent changes in duty structure sometimes hamper the momentum of industrialisation, so the DCCI requested government to formulate a static Duty Structure at least for 3- 5 years," he added.
He also proposed to give tax card as electronic smart card to the valued tax payers. "Like tax card he proposed to introduce VAT Smart Card because out of 8,40,000 Business Identification Number (BIN) holders only 30,000 BIN holders give VAT," he said.
Nojibur Rahman said the government is committed to make a business and industry friendly budget for the next fiscal year. He said NBR would organise workshops on tax issues to create awareness among the mass people and it would also organise income tax camp even in the remote areas of the country.
He underscored the importance for reducing gap between tax officials and businessmen. To make it more effective, he said, NBR will initiate internship programme for the tax officials in different trade organisations and associations.
DCCI Vice President Hossain A Sikder and Director Asif A Chowdhury, among others, were present on the occasion.