The Foreign Investors’ Chamber of Commerce and Industry on Friday demanded reduction of the corporate tax rate for all sectors as offered for banks and financial institutions in Bangladesh.
In its budget reaction, the FICCI welcomed the government’s initiative to cut corporate tax on banks and financial institutions by 2.5 percentage points.
The chamber urged the government to reconsider the value-added tax rate imposed on superstores and e-commerce saying that the enhanced 5 per cent VAT rate on superstores and imposition of 5 per cent VAT on e-commerce would increase inflation and discourage the business growth in the sectors.
The chamber expressed its concern over the government proposal of the submission of statements on employees’ tax returns by employers to the National Board of Revenue saying that the provision might turn into a cause of harassment for transparent taxpayers.
It also recommended reducing the high rate of withholding tax on payment to non-resident and said the proposal for taking prior certificate from the NBR for the payment to non-resident would cause severe difficulties for companies concerned.
The FICCI appreciated the government roadmap to lay the foundation of digital Bangladesh and recommended taking further steps to encourage foreign investments to fasten the vision.
The chamber also recommended withdrawal of supplementary duty from locally manufactured products and implementation of certain progressive provisions of VAT and SD Act 2012 in VAT Act 1991.
The FICCI also appreciated the government for withdrawal of the provision of taxing dividend income multiple times.
It said that the exemption of the multiple-tier dividend taxation would benefit many existing companies and encourage local investment.
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