DCCI has proposed the government to increase the tax-free ceiling for individual taxpayers, allow higher investment rebate, and fix higher tax slab of 25 per cent in the budget for the upcoming fiscal year (FY), 2017-18.
Dhaka Chamber of Commerce and Industry (DCCI) President Abul Kasem Khan proposed an upward revision of the income tax-free threshold for individual taxpayers to Tk 3,50,000 from the existing Tk 2,50,000.
He also recommended allowing 15 per cent rebate on 30 per cent investment or investment worth Tk 30 million, whichever is lower, as investment rebate.
The DCCI leader made these proposals in a pre-budget meeting with National Board of Revenue (NBR) on Monday.
A group of the chamber leaders met NBR Chairman Md Nojibur Rahman to place various budget proposals, relating to income tax, Value Added Tax and customs duty.
The DCCI president proposed to increase the ceiling of perquisite to Tk 6,00,000 from Tk 4,50,000 for avoiding double taxation, and cut corporate tax rate for mobile phone companies to facilitate development in technological sector.
He suggested NBR to allow up to Tk 1,00,000 for transaction in non-banking channels, up to Tk 60,000 transport allowance for individual taxpayers as tax-free, and permission for depositing 5.0 per cent of admitted tax liability before going to appellate tribunal and 10 per cent in High Court (HC).
DCCI also urged the government to exempt all income of chambers and trade associations from payment of tax as non-profit service providing organisations. It also proposed to exclude the chambers from the purview of mandatory taxpayers identification number (TIN).
The DCCI president proposed for an upward revision of the minimum ceiling of total net wealth surcharge to Tk 50 million from the existing Tk 2.25 million.
The chamber body also proposed to raise tax-free ceiling of allowable expense of house rent on repairing to 30 per cent, exempt research and development sector from payment of tax and VAT, and allow duty-free and VAT-free import of mobile, telecommunication and ICT machinery.
Mr Khan suggested expanding tax net, and upgrading tax card to electronic smart card for providing better services to the taxpayers.
The DCCI leaders proposed NBR to frame a long-term duty-structure for three to five years for ensuring smooth industrialisation in the country.
On the new VAT law, to be implemented from July 1, the chamber urged the government to slash the uniform VAT rate to 7.0 per cent from the existing 15 per cent.
DCCI also proposed to raise turnover tax limit to Tk 12 million from Tk 8.0 million. For small businesses, it suggested 'no VAT' up to Tk 5.0 million and 3.0 per cent VAT from Tk 5.0 million to Tk 12 million.
The DCCI president urged the government to bear the cost of installing Electronic Cash Register (ECR) and supply VAT smart card to them.
He also demanded to cut discretionary power of VAT officials in investigation in the new VAT and supplementary duty act 2012.
He said taxmen should come out from the traditional concept that income of a taxpayer will gradually go up, as in reality it can go down also.
Speaking at the pre-budget meeting, NBR Chairman Md Nojibur Rahman said the revenue board has launched country-wide campaign to create awareness among people on tax payment.
"NBR has also planned to set up tax camps in remote areas. The revenue board will need cooperation of the chambers to materialize its innovative plans," he added.