FE Report
The Chittagong Chamber of Commerce and Industry (CCCI) Saturday urged the Chief Adviser (CA) to withdraw the provision of payment of 0.25 per cent income tax on turnover of a company, irrespective of profit or loss, as imposed in fiscal 2007-08 budget.
"The new provision is a blow to the country's entrepreneurs as income tax is always imposed on the profit of a company, not on the loss incurred by the entity," CCCI president Saifuzzaman Chowdhury said in a letter sent to the CA.
The CCCI chief suggested that the difference in tax rates for import of raw materials and machinery of industries, and finished products should be widened to help flourish the domestic industry and create employment opportunities.
The CCCI said although the budget has suggested a new three-tier tariff slabs of 10 per cent, 15 per cent and 25 per cent in place of 5.0 per cent, 12 per cent and 25 per cent with complete removal of industrial development surcharge (IDSC) of 4.0 per cent, the new structure has affected the growth of the country's industry, especially the small and medium enterprises (SMEs).
"A good number of SMEs have faced closure or are on the brink of collapse due to uneven competition with the cheap imported products unleashing a blow to the overall economy," the CCCI said.
The CCCI regretted that although the business community had expected a different budget in this fiscal, some of the budgetary measures remained counter-productive with respect to business promotion.
Withdraw income tax on company turnover, CCCI urges govt
FE Team | Published: October 21, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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