Country's apex trade chamber finally urged the government to recast some measures in the proposed budget for next fiscal, retaining the multiple VAT rates, reducing turnover tax and up-raising the individual income-tax threshold.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), in its post-budget proposals, called upon the government to fully implement the seven-point proposal of a joint committee regarding the new VAT law.
Its pleas came at the height of heated debates on some measures set out in the budget for the fiscal year (FY) 2017-18, which is poised to get through parliament within a few days.
The FBCCI post-budget proposals touch on income tax, VAT and customs duty placed before the National Board of Revenue (NBR) recently.
The apex chamber proposed that the tax-free threshold for individual taxpayers be raised to Tk 325,000 for the upcoming FY in view of increased cost of living and inflation.
The government kept the ceiling unchanged at Tk 250,000 in the proposed budget, placed in Parliament on June 01, 2017.
The FBCCI also sought cut in the corporate tax rate by 2.5 per cent for all corporate taxpayers including banks and non-banking financial institutions.
The federation leaders said there should be multiple rates of VAT for the businesses that cannot claim rebate.
Cumulative effect of 15 per cent uniform rate of VAT would be 16.5 per cent on products in case of absence of multiple rates.
"Consumers will have to shoulder the burden of higher VAT. Inflation will also spark with the increase in prices," says the FBCCI to substantiate its pleas.
The apex chamber also proposed an increase in the VAT-exempted turnover ceiling to Tk 5.0 million and limit of enjoying turnover tax to Tk 50 million by keeping the rate unchanged at 3.0 per cent.
In the proposed budget, the government set the VAT-exemption limit at Tk 3.6 million and turnover-tax limit at Tk 15 million by increasing the rate of turnover tax to 4.0 per cent.
The FBCCI leaders demanded total withdrawal of the excise duty on bank balance to stem the tide of capital flight and accumulation of black money.
They proposed forming a committee to check "harassment" by field-level VAT officials in the businesses.
The chamber leaders called for reconsidering the hike in import duty on finished mobile set and increase in the depreciation facility for reconditioned cars up to five years.
The post-budget proposals of FBCCI also call for reduction in or waiver of Advance Income Tax, cut in tax at source for export-oriented sectors to 0.50 per cent, increase in the limit of wealth surcharge to Tk 50 million, and keeping the import duty on solar panel unchanged etc.
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