DCCI for change in tax regime in next budget for encouraging investment

Staff Correspondent | Published: 21:58, May 05,2018 | Updated: 22:46, May 05,2018

 
 

Dhaka Chamber of Commerce and Industry president Abul Kasem Khan speaks at a pre-budget press conference at the chamber auditorium in Dhaka on Saturday. DCCI senior vice- president Kamrul Islam and vice-president Riyadh Hossain were also present, among others. —New Age photo

Dhaka Chamber of Commerce and Industry on Saturday demanded increase in tax-free income level, reduction of corporate tax and surcharge on net wealth and withdrawal of multiple levels of tax on dividend to encourage private investment with a view to increasing the ratio of private investment and GDP from existing 23.25 per cent to 28 per cent by 2021.
‘We have asked the government for an integrated national infrastructure policy and to increase infrastructure investment to 5-6 per cent of gross domestic product as the modernisation of infrastructure would boost the economy, contribute to new investment and create more business activities,’ DCCI president Abul Kasem Khan said at a pre-budget press conference at the chamber auditorium in Dhaka.
He blamed poor infrastructure for the slow inflow of foreign direct investment saying that the infrastructure development works should be allotted 5 to 6 per cent of GDP, which is equivalent to $ 320 billion, by 2030 with maximum annual allocation of $ 24.62 billion.
The DCCI president asked the government to implement infrastructure development projects under the public-private partnership.
The chamber demanded gradual decrease of corporate tax rates and surcharge in next three years.
The DCCI asked for tax exemption for five years on the income of non-resident Bangladeshi professionals to encourage them to return home and said that it would help the government to retain the $4 billion outward remittance.
In order to develop the capital market, a greater cooperation and coordination among the Bangladesh Bank, the Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange, Chattogram Stock Exchange, Insurance Development and Regulatory Authority and Commercial banks was needed, the DCCI president observed.
The DCCI proposed converting Dhaka-Chittagong Economic Corridor into full-functioning expressway and if the people can movement to Chittagong from Dhaka within 3-4 hours it would contribute additional one per cent to GDP.
Development of the DCEC Corridor would help the economy to increase trade, business and decentralisation of Dhaka, the trade body said.
The chamber proposed tax exemption on education expenses up to Tk 1.20 lakh for children.
The DCCI president said that a series of dialogue between private and public sector can build the confidence among the private sector players for making investment.

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