Metropolitan Chamber of Commerce and Industry along with some other trade bodies on Sunday demanded corporate income tax cut both for listed and non-listed companies.
At two separate pre-budget meetings with National Board of Revenue, the trade bodies also sought an increase in tax-free income limit for individual taxpayers.
At the meeting with MCCI, NBR chairman Md Mosharraf Hossain Bhuiyan said that the highest value-added tax rate would be 15 per cent with rebate facility under the new VAT law as NBR did not agree with a proposal of lowering the rate to 10 per cent.
He said the VAT rate would be 15 per cent for all the stages of a particular supply chain, so that the businesses could get tax rebate.
MCCI demanded that NBR reduce corporate tax rate for non-listed companies from the existing 35 per cent in the budget for next fiscal year (2019-2020).
Reduction in corporate tax rate would increase the reusable fund of companies for reinvestment, it said.
The country’s oldest trade body also demanded reduction in advance income tax at the import stage to 3 per cent from the current 5 per cent.
MCCI said that tax-free income ceiling for individual taxpayers should be increased to 4 lakh from the current 2.5 lakh considering the rise in cost of living and inflation.
NBR should also reduce the highest rate of individual income tax rate from the current 30 per cent to 25 per cent and introduce a new rate at 5 per cent for individual taxpayers.
Reduction in income tax rate would encourage taxpayers to show actual income, which would also increase revenue collection, it said.
MCCI taxation sub-committee chairman Adeeb H Khan placed the budget proposals at the meeting.
India-Bangladesh Chamber of Commerce and Industry said that corporate tax rate for listed companies should be lowered to 22.5 per cent from the current 25 per cent along with reinstating the provision of 10 per cent tax rebate for giving cash dividend above 40 per cent.
Bangladesh China Chamber of Commerce and Industry also demanded reduction in corporate income tax and withdrawal of advance income tax at the import stage.
Bangladesh Women Chamber of Commerce and Industry sought tax holiday for three years for new woman entrepreneurs, increasing tax-free income limit to 4 lakh for women and VAT exemption on training and workshop.
Women Entrepreneurs Network for Development Association demanded an increase in VAT free-turnover limit to Tk 1 crore and reduction in corporate tax by 5 per cent, 7 per cent and 10 per cent respectively in next three years from the current 25 per cent.
Anti Tobacco Media Alliance placed a set of proposals including reduction in price slabs of cigarettes to two —low and high — from the current four slabs for taxation.
It also demanded imposition of tax on retail prices of tobacco products.
NBR members Kanon Kumar Roy, Shahnaj Parveen and Abdul Mannan Sikder, MCCI vice-president Golam Mainuddin and members Anis Ud Dowla and Hasan Mahmood, IBCCI member Ahsanul Huq Chowdhury, BWCCI senior vice-president Sangita Ahmed, WEND president Nadia Binte Amin spoke, among others, at the meetings.
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