Businesses propose host of fiscal measures

Country's leading business leaders Tuesday proposed a host of fiscal measures including raising existing ceiling on wealth tax, widening tax net instead of increasing its rate and tax-free threshold for individual taxpayer for the upcoming national budget.
They also suggested reducing the rate of corporate tax and the existing bank interest rate in the fiscal year (FY) 2015-2016 to attract more foreign and local investments in the country.
The suggestions were made at the 36th consultative meeting of National Board of Revenue (NBR) at a city hotel. The meeting was jointly organised by NBR and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) where Finance Minister AMA Muhith was present as the chief guest.
Leaders from country's major chamber bodies, business associations as well as executives from different private companies and senior government officials concerned attended the meeting.
They also demanded reduction in the existing tax at source on export receipts and providing incentives for a certain period for exporters for the EU (European Union) markets to help them cope with the impact of devaluation of euro.  
FBCCI President Kazi Akram Uddin Ahmed at the meeting placed a number of proposals in the fields of income tax, customs duty and value added tax for consideration of the revenue board in the next budget for the fiscal year 2015-2016 to facilitate trade and investment to achieve a middle-income economy status.
He proposed an increase in tax-free income limit for individual taxpayers to Tk 275,000 from Tk 220,000 taking amplified cost of living and high inflation and decrease in people's purchasing capacity into consideration.
He said NBR should raise the tax-free threshold for women to Tk 325,000 from 275,000, for people with disabilities to Tk 400,000 from Tk 350,000 and for injured freedom fighters to Tk 450,000 instead of Tk 400,000 in the upcoming FY.
The president of the country's apex trade body said the rate of corporate tax in Bangladesh is much higher comparing to individual tax rate which discourages investment here.
"So, I proposed reduction in corporate tax. The finance minister has already assured us of taking the proposal into account," he added.
Terming high lending rate a key barrier to investment, lawmaker and Chairman of Gazi Group Golam Dastagir Gazi said the government must take measures to cut such rate into a single digit to encourage investors.
He also suggested slashing the existing rate of income tax.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md. Atiqul Islam came down heavily on two western retailers' groups - Accord and Alliance, saying that the platforms were forcing the manufacturers to import safety products like electric wires and fire doors from their prescribed foreign companies instead of local firms.
President of Exporters Association of Bangladesh (EAB) Abdus Salam Murshedy said Bangladeshi products lost its price competitiveness in the global market because of several factors.
Chairman of Nitol-Niloy Group of Companies Abdul Matlub Ahmad said the government can attract more investors both local and foreign by reducing the existing lending rate and introducing pro-investment policy.
President of Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) Abdul Hamid Sharif demanded tax benefit for vehicles used as ambulance and export purposes.
He also sought similar tax structure for both hybrid and normal vehicles.
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