NBR mulls raising revenue flow by cutting corporate tax

The National Board of Revenue (NBR) is considering carrying out an 'experiment' to increase revenue earning by lowering corporate income tax, said its Chairman Md Mosharraf Hossain Bhuiyan.

He also promised to include non-traditional and new products in the list of bonded warehouse facility for enjoying duty-free benefit to diversify the country's export basket.

His comments came following proposals of the business leaders in a quarterly luncheon meeting of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) on its premises on Wednesday.

Terming the planned reduction in corporate tax rates for raising revenue earning a 'challenge', the NBR chief said some experiments can be done in this regard, which may be now or may be within the next 2-3 years.

He also said many non-complaint taxpayers may come under the tax net, if the government lowers the tax rates.

MCCI President Nihad Kabir presided over the meeting and presented a written proposal of the chamber before the NBR chairman.

In the proposal, the trade-body suggested the government to focus on education, skills and human resources development in the upcoming budget.

MCCI also stressed the need for maintaining policy consistency, preferably for at least five years, to help entrepreneurs prepare their investment plan.

Responding to a proposal of Runner Group Chairman Hafizur Rahman Khan on offering bonded warehouse facility for motorcycle export, the NBR chairman said the revenue board is willing to provide the facility to export of such non-traditional products.

Motorcycle with higher engine capacity, like - 250 cc, will also get the benefit. It will be only for export purposes, not for selling in the local market, he added.

Currently, import of motorcycle with engine above 165 cc is prohibited.

Bonded warehouse facility is a system under which entrepreneurs can avail duty-free import of capital machinery and raw materials for producing items for export. Finished goods, manufactured by using bonded goods, cannot be sold in the local market.

The MCCI leaders urged the government to ensure higher allocation in human resources development, education and skill development.

They also demanded withdrawal of the penalty provision for employers in case of non-submission of tax returns by their employees.

The NBR chairman said the revenue board will review the multilayer dividend issue and keep several VAT rates in the upcoming budget.

Ms Kabir noted that MCCI is the only chamber that is paying tax on its income.

Bangladesh Employers Federation President Kamran T Rahman proposed offering fiscal incentives for companies in case of employing physically- and mentally-challenged people.

MCCI vice-president Golam Mainuddin and committee member Habibullah N Karim, and HSBC chief executive officer Francois de Maricourt also spoke at the meeting.

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