Unchanged tax-free income limit disappoints MCCI

Staff Correspondent | Updated at 01:47am on June 09, 2018

Metropolitan Chamber of Commerce and Industry on Friday expressed its disappointment as the tax-free income limit for individuals remained unchanged in the proposed budget for the fiscal 2018-2019.
The trade body vented its disappointment in its comment on the proposed budget, issued by its tariff and taxation subcommittee chairman Hasan Mahmood.
‘The threshold has not been changed for the last three years,’ MCCI said, adding that the chamber strongly felt that the threshold should be increased.
MCCI appreciated the 2.5 per cent corporate tax cut only for the listed and non-listed banks, insurance and financial institutions.
The trade body again finds it disappointing that the applicable tax rate above 35 per cent for a large number of corporate remained unchanged.
Though the country has officially adopted employment-led growth model in the national planning, it has hardly any reflection in the proposed budget, MCCI says.
The recent BBS report expressing concern about the shrinking number of new jobs despite the high GDP growth should have been addressed in the budget, it notes.
Appreciating the growth target of 7.8 per cent in the FY18, MCCI says that the GDP growth will also rise further as the country has started showing encouraging signs of higher demand for investment credit, increased import of industrial
raw materials, better export performance and remittance earnings.
It, however, suggests special attention to limit inflation to 5.4 per cent target in the new fiscal year.
About the Tk 2,96,201 crore revenue target set for NBR, MCCI says attaining the target for FY19 will continue to be a major challenge though the number of taxpayers has increased.
MCCI suggested that tax compliant enterprises should not be excessively burdened, instead new avenues of tax collection should be identified and pursued.
To this end, the government should set tax payer number targets for the tax officials and reward them for enrolling new taxpayers.
Appreciating the government’s Tk 1,73,000 crore allocation for the annual development programme, MCCI urges the government to take necessary measures to ensure efficient and effective spending of the ADP funds.
MCCI also appreciated the government for allocating Tk 46,452 crore or 26.85 per cent of ADP for education, health and family welfare sectors.