No extension of tax holiday beyond June: NBR

FE Team | Published: March 30, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The National Board of Revenue (NBR) chairman Tuesday said the government will not extend tax holiday facilities, beyond June 2011 and all industries will have to pay taxes at reduced rate. He said this is the latest instruction of Finance Minister AMA Muhith at a pre-budget discussion meeting with chartered accountants and freight forwarders association held on the NBR premises. It has been observed that a majority of the local businesses have been demanding continuation of the tax holiday facilities in the pre-budget discussion. The NBR chairman cleared the stand of the government in this regard in response to a proposal of the Institute of Chartered Accountants of Bangladesh (ICAB). The association has proposed continuation of the tax holiday facilities for next five years. ICAB has proposed to collect tax on turn over, not on profit of businesses to avoid disputes of tax collection. They also sought the NBR help to extend time by at least one month for payment of withholding taxes, raise tax-free ceiling of house rent to Tk 25,000 from Tk 15,000. The association leaders have sought similar tax rebate facilities on providing dividend for all publicly traded companies. The ICAB members have also proposed the government to make provision for mandatory submission of tax clearance certificates to the regulatory body of non-government organisations to make them tax-compliant. They also said the government can introduce a renewal fees for taxpayers identification number (TIN) to bring fake and duplicate taxpayers under formal tax net. The association leaders also sought simplification of VAT return system by introducing a central registration method. The chartered accountants demanded withdrawal of supplementary duty on locally manufactured goods which are not luxury products. They have sought re-introduction of sample testing system in the ports to expedite releasing of imported goods though bank guarantees. In another meeting, freight forwarders have sought simplification of freight forwarding rule and exemption from payment of Value Added Tax (VAT) to avoid double taxation. The freight forwarders' association also sought approval of submission of bill of entry or bill of export directly to the customs authority to expedite their door-to-door service.