The Business Initiative Leading Development (BUILD), a public-private dialogue platform, has proposed reducing corporate income tax (CIT) for the listed companies to 25 per cent from the existing 27.5 per cent.
As CIT for the non-listed companies was reduced by 2.5 per cent to 35 per cent in the last fiscal, tax for the listed ones should be 25 per cent to maintain the 'agreed' tax difference of 10 per cent between the two types of companies, and thus encourage more companies to be enlisted, it opined.
BUILD made the suggestion in a set of tax proposals, recently placed before the National Board of Revenue (NBR), for inclusion in the upcoming budget.
It also proposed to reduce minimum tax to Tk 2,000 from existing Tk 3,000 inside the city corporation areas, and to Tk 1,500 from Tk 2,000 in the districts and municipalities.
If the amount of minimum tax is high, taxpayers will be discouraged, eventually causing tax evasion, BUILD said.
To save foreign currency and explore backward linkage in the transport and vehicles industry, it suggested tax holiday benefit for production and assembling in the industry.
It further proposed to reduce the amount of advance deposit, required for tax appeal, in order to simplify the system for business entrepreneurs.
BUILD also suggested 'not to treat' the money, received through duty drawback, as profit or income of exporters in order to encourage them as well as non-traditional exports of the country.
Considering the small and cottage industries, small entrepreneurs and shopkeepers and their incapability to maintain accounts, it recommended increasing the VAT-exempted limit to Tk 3.6 million from existing Tk 2.4 million.
Regarding the newly-introduced alternative dispute resolution (ADR) system in taxation, BUILD proposed amendments to its provisions, giving the taxpayers a choice to select facilitators, allowing them to file review application and ensuring quality lawyers.
The organisation further suggested extending the 20 per cent rebate facility on electricity bills, applicable for agro-based industries, to private cold storages too.
It said agro industries are eligible to receive a rebate of 20 per cent on electricity bills and 5 per cent VAT exemption.
However, this benefit has not yet been extended to private cold storages even though cold storage is classified as an agro industry, it also said, adding that BADC cold storages (public sector) receive this 20 per cent rebate on electricity bill.
BUILD, among others, also suggested framing policy guidelines for fixing duties and taxes for raw materials, finished products and capital machineries in order to give a clear idea to the local and foreign investors to prepare for investment.
Other budget proposals of BUILD include reduction in advance income tax (AIT), imposed at import stage, to 3 per cent from 5 per cent, and waiver of VAT on import of coriander seed for sowing.
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BUILD for reducing listed cos\\\' CIT to 25pc
FE Report | Published: May 25, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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