The FBCCI proposed tax-exempt earning limit to be set at Tk 350,000, up by 40 per cent from the existing threshold considering higher cost of living and fast erosion of peoples' purchasing power.
It also proposed to reduce the corporate tax rate by 2.5 percentage point to 22.5 per cent for the public listed companies.
FBCCI's proposals for corporate tax applicable for banks, insurance and other types of financial institutions remained unchanged at 37.5 per cent for the listed ones and 40 per cent for the non-listed financial institutions.
The apex trade body placed these proposals at the 40th budget consultative committee meeting, jointly organised by the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
In the meting the FBCCI chief expressed his satisfaction over the latest decisions pertaining to the VAT Act-2012.
The government on March 31 last took decisions on multiple rates (5.0 per cent, 7.5 per cent and 10 per cent) for VAT instead of a single rate of 15 per cent.
Finance Minister AHM Mustafa Kamal said that there will be a large number of reform proposals in the upcoming budget to be placed on June 13 for fiscal year 2019-2020.
He hinted that one reform will be zero-tolerance on corruption at the tax collection premises.
"You will see I will propose so many reforms which never took place since our independence," Mr Kamal said.
"The NBR will be a hassle free zone," Mr Kamal said.
He said the tax rate will reduce day by day but the tax net will be widened.
"We have tax target for the next fiscal year is around Tk 3.25 trillion and that's why we need to widen it."
The finance minister said the income tax law will be much easy by adding: "double taxation and other anomalies will be there no more."
However, the FBCCI president was highly critical of the 'hypothetical' gross profit (GP) formula while assessing taxes.
"This should be stopped, and an appropriate formula to be recognised by the Financial Reporting Council should be adopted."
The FBCCI suggested the formation of a high-powered committee to combat the under-invoicing and mis-declaration of imports.
"There is a need for formation of a high-powered committee headed by a member of the NBR to fight against the growing number of under invoicing and mis-declaration incidents," the FBCCI president said.
Mr Mohiuddin said that there is need for amendment of the third schedule of the income tax ordinance which deals with depreciations.
"There is need for introduction of 'straight line depreciation' method instead of the existing 'reducing balance method' to attract the investment."
He also said tax at sources, especially on raw-materials import, should be reduced and rationalised considering its ground reality.
The FBCCI was highly critical of the re-assessment of the tax files under section 120 of the income tax ordinance.
"This is like a 'policing' and this is causing many hassles for the genuine tax payers."
In the meeting the country's business leaders called on the government to reduce corporate tax rates and other duties in the national budget for fiscal year (FY) 2019-20.
They called for a review of the advance income tax (AIT) and withdrawal of taxes on import of raw materials for some sectors.
They also sought steps to bring down the lending rates to a single digit.
Representatives of different trade bodies also attended the meeting at the Bangabandhu International Conference Centre (BICC) in the city.
The Prime Minister's Private Industry and Investment Adviser Salman F Rahman, NBR Chairman Md Mosharraf Hossain Bhuiyan, and Principal Coordinator (SDG affairs) of the Prime Minister's office Abul Kalam Azad were also present.
Speaking at the meeting, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Rubana Huq urged the government to take necessary steps so that the exporters can receive cash incentives without any hassles.
"We do not need any changes in the rate of incentives, but we need to receive the money in a facilitated way," she said.
She called for providing equal support for all entrepreneurs, so that new entrepreneurs feel encouraged to do businesses.
Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon called on the government not to impose further taxes on the textile sector, as it plays a crucial role for the apparel sector, which contributes the lion's share to the country's total export earnings.
Alamgir Shamsul Alamin, president of the Real Estate and Housing Association of Bangladesh (REHAB), called for taking steps to lower the banks' lending rates to a single digit for the realtors.
He underscored the need for reducing the flat registration fee to 7.0 per cent in order to increase the number of registrations as well as the government's revenue.
Editor of the Prothom Alo Matiur Rahman, who represented the Newspaper Owners' Association of Bangladesh (NOAB), appealed for a reduction in the tax deducted at source (TDS) and AIT on earnings from the newspaper advertisements.
He called for slashing the corporate tax to 12 per cent from the existing 35 per cent.
"I would like to call for an increase in the rate of government advertisement and payment of the bills in time," said Mr Rahman.
Salahuddin Alamgir, president of Bangladesh Dyed Yarn Exporters Association, said electronics giant Samsung could not set up a full-fledged mobile phone manufacturing factory in the country due to loopholes in the policy.
Bangladesh Agro-Processors' Association (BAPA) President AFM Fakhrul Islam Munshi also called for a cut in the lending rate for the agro-based industries.
Dhaka Chamber of Commerce and Industry (DCCI) President Osama Taseer stressed the need for reducing corporate tax by 10 per cent for both listed and non-listed companies.
Bangladesh Computer Samity (BCS) President Md Shahid-ul-Munir proposed continuing the tax exemption on computer parts, aiming to achieve the country's vision of establishing a digital Bangladesh.
He also called for withdrawal of 15 per cent VAT on Internet router.
"The device is important to promote the use of Internet in every part of the country," he said.
Priti Chakraborty, a director of the FBCCI, urged the government to make a clear policy for the private healthcare sector, so that the sector can get allocation in the national budget.
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