The Foreign Investors’ Chamber of Commerce and Industry on Monday urged the government to reduce corporate tax rate by 5 per cent to 10 per cent for all the categories in the upcoming national budget for the financial year 2020-21.
At a pre-budget discussion with National Board of Revenue chairman Abu Hena Md Rahmatul Muneem at his office in Dhaka, the FICCI also proposed that the Value Added Tax should be calculated on transaction value instead of on base value in addition to removing ambiguities in central registration for businesses.
The FICCI, the platform of foreign investors in the country, demanded the removal of advance tax on raw materials and to introduce a simplified VAT registration format in line with the initial rules of 2016 for purchase and sales.
In its proposals, the trade body said that there should be clear guidance in the Offshore Banking Unit policy regarding the tax exemption benefit on interest payment against overseas OBU borrowing.
It also demanded the removal of the 10 per cent cap on inclusion of head office expense in the income tax law and introduction of tax on actual taxable income by removing the minimum tax provision.
FICCI vice-president Kedar Lele, executive committee members Mahtab Uddin Ahmed, Naser Ezaz Bijoy and executive director TIM Nurul Kabir attended the meeting.
‘Valuation Rules 2000 should be followed in all respect for assessable value of imported goods. In case of dispute in valuation method, an importer should be allowed to release the imported goods on submission of bank guarantee for the disputed amount,’ the platform said in its proposals on customs duty.
The FICCI also proposed that the time bar on import of capital machinery should be removed and the value decrease or increase base on the different variants of the goods and actual transaction value should be amended.
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