Businesses to continue fight for 7pc VAT rate: DCCI

Staff Correspondent | Published: 23:45, Apr 29,2017

 
 

Dhaka Chamber of Commerce and Industry president Abul Kasem Khan speaks at press meet on the upcoming national budget for the fiscal year 2017-18 held in Dhaka on Saturday. DCCI senior vice-president Kamrul Islam was present, among others. — New Age photo

The Dhaka Chamber of Commerce and Industry on Saturday reiterated its demand for a reduction in value-added tax rate to 7 per cent from the 15 per cent set in the new VAT act which is scheduled to come into force from July 1 this year.
‘Businesses will continue their fight for the VAT rate reduction until their demand is met,’ said DCCI president Abul Kasem Khan at a press briefing the chamber body arranged at its office in Dhaka to place their budget proposals for the next fiscal year.
The single VAT rate (15 per cent) will increase inflationary pressure on consumers as well as put a negative impact on the overall economy by reducing production as demand will slow due to prices hike of many goods, Kasem said.
The NBR can boost revenue collection through expanding its VAT net instead of raising VAT rate, he said.
He also demanded an increase in the VAT-free turnover limit to Tk 50 lakh from the current Tk 30 lakh and the upper limit on turnover to Tk 1.20 crore from the current Tk 80 lakh for imposing 3 per cent turnover tax under the new VAT and Supplementary Duty Act-2012.
He also urged the government to conduct an impact analysis before setting up the turnover limit considering the daily transactions by small and medium enterprises which are the dominant business units in the country’s economy.
He said that businesses were also getting afraid of possible harassment under the new VAT regime as many businesses mainly SMEs would not be able to maintain accounts properly for VAT purpose.
The revenue board should also ensure VAT eco-system incorporating modern technologies including mobile phones in the VAT collection process as these technologies are cheaper and user-friendly while electronic cash register machines are costlier and require specialised knowledge to operate, he said.
At the press conference, the DCCI also placed some policy reform-related proposals including setting up a project monitoring platform headed by the prime minister under the public-private modality in the name of National Infrastructure Development and Monitoring Advisory Authority (NIDMAA).
The Authority will monitor the progress of implementation of high-priority infrastructure projects to ensure speedy, timely, proper and cost-effective execution of the projects, the DCCI said.
It also said that the government should prioritise creating enabling investment climate by addressing energy and power issues as well as infrastructure development in the next budget for the FY 2017-2018.
Boosting private investment including foreign direct investment, employment generation, and
Continued on B2 Col. 1Businesses to continue fight for 7pc VAT rate: DCCI
Staff Correspondent
The Dhaka Chamber of Commerce and Industry on Saturday reiterated its demand for a reduction in value-added tax rate to 7 per cent from the 15 per cent set in the new VAT act which is scheduled to come into force from July 1 this year.
‘Businesses will continue their fight for the VAT rate reduction until their demand is met,’ said DCCI president Abul Kasem Khan at a press briefing the chamber body arranged at its office in Dhaka to place their budget proposals for the next fiscal year.
The single VAT rate (15 per cent) will increase inflationary pressure on consumers as well as put a negative impact on the overall economy by reducing production as demand will slow due to prices hike of many goods, Kasem said.
The NBR can boost revenue collection through expanding its VAT net instead of raising VAT rate, he said.
He also demanded an increase in the VAT-free turnover limit to Tk 50 lakh from the current Tk 30 lakh and the upper limit on turnover to Tk 1.20 crore from the current Tk 80 lakh for imposing 3 per cent turnover tax under the new VAT and Supplementary Duty Act-2012.
He also urged the government to conduct an impact analysis before setting up the turnover limit considering the daily transactions by small and medium enterprises which are the dominant business units in the country’s economy.
He said that businesses were also getting afraid of possible harassment under the new VAT regime as many businesses mainly SMEs would not be able to maintain accounts properly for VAT purpose.
The revenue board should also ensure VAT eco-system incorporating modern technologies including mobile phones in the VAT collection process as these technologies are cheaper and user-friendly while electronic cash register machines are costlier and require specialised knowledge to operate, he said.
At the press conference, the DCCI also placed some policy reform-related proposals including setting up a project monitoring platform headed by the prime minister under the public-private modality in the name of National Infrastructure Development and Monitoring Advisory Authority (NIDMAA).
The Authority will monitor the progress of implementation of high-priority infrastructure projects to ensure speedy, timely, proper and cost-effective execution of the projects, the DCCI said.
It also said that the government should prioritise creating enabling investment climate by addressing energy and power issues as well as infrastructure development in the next budget for the FY 2017-2018.
Boosting private investment including foreign direct investment, employment generation, and broadening tax net should also be prioritised, it said.
The chamber also demanded increasing the tax-free income limit for individual taxpayers to Tk 3.50 lakh from the existing Tk 2.50 lakh, reducing the highest rate of income tax to 25 per cent from the current 30 per cent, lowering the corporate income tax rate for non-publicly traded companies to 30 per cent and for merchant banks to 35 per cent from the existing 35 per cent and 37.5 per cent respectively.
The trade body also sought tax incentive for reinvestment of corporate profits.
Other proposals of the chamber include raising the number of income taxpayers to 50 lakh by 2019, issuing tax cards for all income taxpayers and VAT smart cards for VAT collecting businesses.
The chamber also demanded that the government raise allocation to the annual development programme reducing allocation to non-development sectors, double allocation for infrastructure and raise fund from the capital market to implement infrastructure projects.
It also suggested that the government should impose congestion tax on vehicles and adopt car pulling and holiday and working day car driving concept to reduce severe traffic jam in Dhaka.
DCCI senior vice-president Kamrul Islam and directors were also present at the briefing.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images