The Bangladesh Chamber of Industries (BCI) has suggested fixing lower corporate tax rate for industrial sector than trading sector's as it is a generator of jobs and a foreign-currency saver.
Hailing many of the proposed fiscal measures for fiscal year 2021-22, it also demanded withdrawal of advance income tax (AIT) and advance tax (AT).
Chamber leaders also sought an upward revision of the tax-free threshold for individual taxpayers to Tk 0.4 million.
In a press conference on the BCI premises on Thursday, BCI president Anwar-Ul-Alam Chowdhury (Parvez) placed a set of proposals to consider in the FY22 budget.
He sought tax holiday on investment and income derived from vocational and technical training courses, offer of tax exemption on remuneration of professional and technical trainers if any institution or industry appoints them.
Mr Chowdhury also proposed tax holiday for young entrepreneurs in micro and small industries, offer of tax exemption on investment in research and skills development, bonded warehouse facility for export-oriented small and women entrepreneurs, and tax-free eco-friendly investment.
He also demanded VAT exemption on all utility service charges, cut in source tax on export subsidy to 3.0 per cent from existing 10 per cent and implementation of the Competition Law-2012.
Welcoming the proposed tax benefit for light engineering sector, he highlighted some left-out demands like VAT exemption on locally produced machinery, duty exemption on imported aluminum thick sheet and VAT exemption on imported raw materials.
The chamber also demanded withdrawal of the proposed 15-per cent income tax on private universities, medical and engineering colleges.
On existing 5.0-per cent AIT, Mr Chowdhury says tax leads to a rise in the cost of business due to complexities in adjustment or refund of the paid tax with the actual payable tax.
He proposed to cut turnover tax of industries to 3.0 per cent from 4.0 per cent and upward adjustment of annual turnover limit to Tk 100 million from existing Tk 30 million.
The BCI leaders also demanded withdrawal of discriminatory tax measures on local industries as they have to pay 7.5-per cent source tax on supply of locally produced steel tower and other products while contractors of international tenders enjoy exemption on its import for construction of electricity transmission line through international tender.
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