The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has urged the government not to increase tax at source on export proceeds.
The apex trade body also thanked the government for removing tax discrimination in the export sector as the tax ratefor all types of export-oriented sectors was proposed at 12 per cent in the proposed budget for upcoming fiscal year.
FBCCI President Md Jashim Uddin came up with statement at a press conference on the proposed budget held at the FBCCI building in the capital on Saturday, reports BSS.
Top FBCCI leaders, DCCI President Rizwan Rahman were present, among others, on the occasion.
Finance Minister AHM Mustafa Kamal placed the national budget for next fiscal year, 2022-23, in the parliament on Thursday. In the proposed budget, the finance minister proposed increasing the source tax to 1 per cent from the existing 0.5 per cent.
Regarding the proposal, the FBCCI president said, “The tax at source has been proposed to be increased from 0.50 per cent to 1 per cent which will have a negative impact on exports in the current global situation.”
In this regard, Jashim demanded of the government to reinstate the existing tax at source at 0.50 per cent.
He also requested to withdraw the import duty imposed on solar panels since the import duty has been increased from zero per cent to one per cent in solar panels.
He said that the tax at source on supply of raw materials has been reduced from 7 per cent to 4 per cent while the tax at source on supply of commercial products has been reduced from 7 per cent to 5 per cent.
“As tax at source is refundable and increases business cost, so we are calling again for the withdrawal of the tax at source,” he added.
Considering the high living cost, inflation, and overall economic situation, the FBCCI President requested the government to reconsider the issue of raising the tax ceiling of individual taxpayers which is Taka 300,000.
He proposed for forming a trade facilitation department under the National Board of Revenue (NBR) splitting the revenue collection and revenue policy operations.
Besides, he demanded of the government for taking steps to adjust the advance income tax in due time through addressing the systematic complexities.
Jashim also proposed for waiving fully the direct tax on the start-ups for 3 to 5 years and ensuring 50 per cent rebate on indirect tax.
Responding to a barrage of questions, the FBCCI President apparently opposed the proposed budgetary provision for giving tax amnesty to bring back the syphoned off money from abroad to the mainstream of the economy.
“I think it should not be allowed, it will discourage the country's honest and loyal businessmen,” he noted.
In conclusion, the FBCCI President said, “We think that the proposed budget will be more business, investment and revenue friendly if our recommendations are reconsidered.”
