Our Correspondent
CHATTOGRAM, Apr 21: The government will reduce high tax rate on import of raw materials to boost local production. The facilities will be provided on import of raw materials for products which the local producers are able to produce. It will be ensured in the upcoming national budget.
Chairman of the National Board of Revenue and Senior Secretary, Internal Resources Division of the government, Md Mosharraf Hossain Bhuiyan said this at pre-budget meetings with the trade body leaders in the port city on Saturday.
He addressed the pre-budget meetings at the Chittagong Chamber of Commerce and Industry, Chittagong Metropolitan Chamber of Commerce and Industry and Chittagong Women Chamber of Commerce and Industry. He installed a scanner of the Chittagong Customs House at Gate Number 2 of the Chittagong Port Authority.
Assuring the businesses the NBR chairman said interest rate on bank loans would also be brought down to facilitate more investment by the private sector, because the country's private sector generates employment and boosts production in factories and also contributes to the national economy. A few banks have already reduced bank rates on loan while others would follow the suit.
The nation is heading towards a middle income country where the local manufacturing sector plays a very important role. "It is the duty of the government to help the sector with all moral support and the government is committed to do that. The fiscal policy should be business-friendly and we, on our part, will continue that effort."
He said the contribution of the manufacturing sector to the total national GDP (gross domestic product) was 20 per cent last year but it is 28 per cent this year. The manufacturing sector's contribution to the national GDP should be 35 per cent by 2021.
As regards undisclosed income, Mr Mosharraf said legalising the undisclosed income should be brought under a legal framework for investment. The matter of charging compensation on undisclosed income should remain effective for next few years, at least, to discourage black money, hundi and money laundering.
The NBR chief emphasised widening the tax net and said the marginal taxpayers would be given support by reducing the tax rate.
He said disruption in automation at the Chittagong Customs House and shortage of scanners at the port were hampering cargo delivery. Very soon, the automation system would be made flawless and adequate scanners would be installed at all gates of the port within the current calendar year. He requested the port users to be more prompt to take delivery of cargo as the port and customs officials have been directed to make the activities operational round the clock as per directives from the Prime Minister's Office to ease congestion of ships and containers at the port.
While highlighting the demands of businesses Chittagong Chamber of Commerce and Industry President Mahbubul Alam said achieving an average 7.0 per cent annual growth of GDP has been possible due to the people's participation in the budget management, revenue income and payment of taxes. Bangladesh is a bright example of development in today's world.
He placed 148 duty-related proposals, 30 VAT (Value Added Tax) -- related and 48 income tax-related proposals to the NBR boss for consideration in the upcoming national budget.
The CCCI boss suggested that the tax rate on publicly traded companies be reduced from 25 per cent to 20 per cent and that of private limited companies be reduced from 35 per cent to 25 per cent. The expenditure on the CSR (corporate social responsibility) should be shown in the profit and loss account and be given 10 per cent rebate on the CSR.
The existing individual tax-free income ceiling should be enhanced to Tk 0.4 million from Tk 0.225 million and that of women and other people aged 65-years and above be raised to Tk 0.5 million from the existing Tk 0.3 million.
Considering the next budget as one for the election year, the CCCI president urged the government to take some steps to reduce the costs of business.
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