Chambers for waiving tax on setting up of power plants

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Doulot Akter Mala
Chamber leaders Tuesday requested the government to waive tax on establishment of power plants, exempt import duty on alternative fuel, cut corporate tax rates and raise existing income tax-free ceiling for individuals.
They pleaded for removal of obstacles to smooth power supply and import of petroleum products for helping them operate their industries amid acute shortage of natural gas.
Leaders of four leading chambers -- International Chamber of Commerce (ICC), Bangladesh, Foreign Investors Chamber of Commerce and Industry (FICCI), Dhaka Chamber of Commerce and Industry (DCCI) and Bangladesh Chambers of Industries (BCI) -- made the proposals in a series of pre-budget meetings with the NBR held on the day at its premises.
"All duties and taxes on establishment of power plants including import duties on machineries should be withdrawn in order to encourage setting up of much needed power plants by the private sector," said ICC,B president Mahbubur Rahman.
He has urged the revenue board to allow duty-free import of diesel for captive and standby generators.
It costs Tk 2.5 per kwh (kilo watt hour) to produce power using gas generators while Tk 13.5 by diesel generators.
DCCI president Abul Kasem Khan has proposed withdrawal of VAT on electricity supply and encourage use of LPG (liquefied petroleum gas).
BCI president Shahedul Islam Helal has proposed import duty waiver on diesel to rein in its prices so that industry could run with the alternative fuel.
Leaders of FICCI has urged the NBR to continue with PSI system until the capacity building of customs authority, withdraw supplementary duty (SD) from onshore manufactured items and ensure a transparent tax audit system.
ICC,B president Mahbubur Rahman has reiterated his proposal to impose a minimum tax at Tk 2500 or so on all TIN holders irrespective of their business size, place, volume, profit etc.
Small grocery shops and businesses should come under tax net and pay a minimum tax, he said adding that "There is need for widening the tax net instead of increasing taxes on the existing tax payers."
He also proposed to raise exiting income tax-free ceiling to Tk 200,000 from Tk 165,000, cut existing rate of VAT to 10 per cent from 15 per cent.
Consideration of 10 per tax at source as final settlement on dividend income from investment in shares of public limited companies listed on stock exchanges and exemption of any advance tax for companies paying dividend to shareholders amounting up to Tk 100,000 also figured in the budget proposals.
The ICC,B president has urged the revenue board to honour clean reports of finding (CRF) certificates issued by Pre-shipment Inspection (PSI) companies.
DCCI president Abul Kasem Khan has proposed to introduce a 'tax card' to encourage taxpayers to pay more tax and ensure a social status for them.
The DCCI leaders said they will prefer investment of legally earned undisclosed income on payment of at least 50 per cent tax and reduction of upper slab of income tax by 5.0 per cent.
The chamber leaders have proposed to cut corporate tax rates, reduce import tax on raw materials and capital machinery, expand tax net and continuation of PSI system until taking alternative effective measure.
Responding to the proposals NBR chairman Dr Nasiruddin Ahmed said they will discuss the tax cut on power and alternative fuel with the power and energy ministry.
Mozibur Rahman, chairman of Bangladesh tariff Commission (BTC), who chaired the meetings with ICC,B and FICCI, strongly recommended imposition of tax on capital gains of share, but disapproved double taxation.