The Bangladesh Chamber of Industries on Tuesday demanded raising the tax-free income level for individuals to Tk 4 lakh and rearranging the rate of the tax in the proposed budget for the financial year 2021-22, considering the living cost and inflation amid the Covid outbreak.
The BCI at a post-budget press conference held at the office of the trade body in the city urged the government to withdraw advance income tax saying that the tax is increasing the cost of doing business.
BCI president Anwar-ul Alam Chowdhury Parvez said that the revenue collection target in the proposed budget would be challenging due to the pandemic and tax offices should be set up at the upazila level to reach the target through widening the tax net.
‘The level of efficiency, transparency, accountability and monitoring should be increased gradually to implement the budget,’ he said.
Parvez demanded increasing cash incentive to 7 per cent from existing 4 per cent for the local textile sector and reducing the source tax on cash incentive to 3 per cent from 10 per cent.
The BCI president urged the government to announce the investments in technical and vocational education tax free.
He also demanded a tax holiday for the micro small and medium enterprises for 10 years and allowing Tk 2 crore of working capital of new entrepreneurs without any question about the fund source.
Parvez demanded not imposing any source tax on the import of industrial raw materials and extending tax rebate for the eco-friendly investment.
The Exporters Association of Bangladesh demanded reducing the source tax on export at the rate of 0.25 per cent from existing 0.5 per cent for five years.
EAB president Abdus Salam Murshedy in a press release on Wednesday proposed continuing the existing 10 per cent and 12 per cent corporate tax rate for RMG factories and green RMG factories respectively for next two years.
He also urged the government to withdraw the advance tax and to set Tk 3 in value-added tax on all kinds of yarns, and duty-free imports of all types of fibres.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Tax