DCCI proposes tax reduction on cos listed with stock mkt******
Thursday, 5 May 2011
FE Report
The country's leading chamber body Wednesday proposed to reduce tax rate on income of companies listed with stock market to 20 per cent from the existing 27.5 per cent aiming to revamp the capital market. The Dhaka Chamber of Commerce and Industry also proposed to reduce tax rate for banks and financial institutions to 40 per cent from 42.5 per cent in the upcoming budget. Asif Ibrahim, president of the DCCI told the reporters about DCCI's proposals for national budget for 2011-12 held at the chamber auditorium in the city. The Chamber chief said that there is no rationale to reintroduce the Wealth Tax Act as it was repealed in 1999. On the draft VAT Act, 2011 which proposes exemplary punishment, the chamber proposed to adopt some more flexible gestures in case of any punitive measures. DCCI said there is also need to clarify some definitions in the draft on Direct Tax Act, 2011. Mr Asif said corporate tax rate for mobile phone operators may be reduced to 42.5 per cent from 45 per cent. He urged the government to reduce maximum tax limit to 20 per cent from 25 per cent. Mr Asif also urged the government to increase the income tax net as well as the tax-GDP ratio through simplifying the tax submission system, reducing harassment and especially bringing confidence among the taxpayers. "The number of TIN holders in the country is only 3 million out of the total population of 160 million. Of them, the number of real taxpayers is below one million which is not expected," DCCI chief added. The DCCI chief said that the income tax department is simultaneously formulating tax policies, collecting tax as well as resolving tax appeals which is one of the main reasons for complexities in the tax system. "The policy formulator and tax collector should be separated, which will also ease NBR activities as well as enhance its efficiency," DCCI president added. He further recommended for extension of time for tax holiday up to 2015. He said that export oriented industries outside the EPZ area should be given tax exemption facility on their export income for 10 years. Mr Asif proposed to reduce tax rate on dividend of companies to 15 per cent from 20 per cent. He advocated for taking measures on tax deducted at source on FDR and savings certificates which should be declared as final. Mr Asif said 0.40% source tax should be considered as final in knitting, dyeing and weaving industries to boost exports and resource mobilizations. The DCCI president said frequent changes on duty structure hamper the development of industrialization of the country. "To encourage local industry, we are proposing zero duty on capital machineries and equipments. Tax rebate facility should be given to capital machineries," he added. Mr Asif has proposed to form a national committee with the representatives from both government and private sector to fix tax rate of importers and local producers. "We recommend for withdrawal of duty on import of LPG mixture, cylinder, bulb and regulator to expedite uses of LPG gas instead of using natural gas," he added. DCCI President urged the government to withdraw the system of price declaration under existing VAT law. The Chamber leader proposed to increase the limit of annual turn over to Tk 10 million BDT from Tk 6.0 million and reduce the turn over tax to 2.0 per cent from 4.0 per cent to encourage the SMEs of the country. Mr Asif recommended to withdraw Advance Trade VAT (ATV) in advance on import. The DCCI president said that the proposed Alternative Dispute Resolution (ADR) Commission should be fully separated from the National Board of Revenue (NBR) adding, "If not, there will be no result from it and its implementation will not be fruitful." On income tax, the DCCI proposed to raise the income tax ceiling for individuals to Tk 2,25,000 from present Tk 1,65,000, for women and elderly persons to Tk 2,50,000 from present Tk 1,80,000 and for disabled persons Tk 2,75,000 from present Tk 2,00,000. The highest income tax rate has been proposed at 20 per cent from present 25 per cent. DCCI Senior Vice President T. I. M. Nurul Kabir, Vice President, Nasir Hossain, Directors Hossain A Sikder, Waqur Ahmed Choudhury, Khairul Majid Mahmud, Al-haj Md. Nasiruddin Khan, Absar Karim Chowdhury, M. Abu Horaira were present at the press briefing.
The country's leading chamber body Wednesday proposed to reduce tax rate on income of companies listed with stock market to 20 per cent from the existing 27.5 per cent aiming to revamp the capital market. The Dhaka Chamber of Commerce and Industry also proposed to reduce tax rate for banks and financial institutions to 40 per cent from 42.5 per cent in the upcoming budget. Asif Ibrahim, president of the DCCI told the reporters about DCCI's proposals for national budget for 2011-12 held at the chamber auditorium in the city. The Chamber chief said that there is no rationale to reintroduce the Wealth Tax Act as it was repealed in 1999. On the draft VAT Act, 2011 which proposes exemplary punishment, the chamber proposed to adopt some more flexible gestures in case of any punitive measures. DCCI said there is also need to clarify some definitions in the draft on Direct Tax Act, 2011. Mr Asif said corporate tax rate for mobile phone operators may be reduced to 42.5 per cent from 45 per cent. He urged the government to reduce maximum tax limit to 20 per cent from 25 per cent. Mr Asif also urged the government to increase the income tax net as well as the tax-GDP ratio through simplifying the tax submission system, reducing harassment and especially bringing confidence among the taxpayers. "The number of TIN holders in the country is only 3 million out of the total population of 160 million. Of them, the number of real taxpayers is below one million which is not expected," DCCI chief added. The DCCI chief said that the income tax department is simultaneously formulating tax policies, collecting tax as well as resolving tax appeals which is one of the main reasons for complexities in the tax system. "The policy formulator and tax collector should be separated, which will also ease NBR activities as well as enhance its efficiency," DCCI president added. He further recommended for extension of time for tax holiday up to 2015. He said that export oriented industries outside the EPZ area should be given tax exemption facility on their export income for 10 years. Mr Asif proposed to reduce tax rate on dividend of companies to 15 per cent from 20 per cent. He advocated for taking measures on tax deducted at source on FDR and savings certificates which should be declared as final. Mr Asif said 0.40% source tax should be considered as final in knitting, dyeing and weaving industries to boost exports and resource mobilizations. The DCCI president said frequent changes on duty structure hamper the development of industrialization of the country. "To encourage local industry, we are proposing zero duty on capital machineries and equipments. Tax rebate facility should be given to capital machineries," he added. Mr Asif has proposed to form a national committee with the representatives from both government and private sector to fix tax rate of importers and local producers. "We recommend for withdrawal of duty on import of LPG mixture, cylinder, bulb and regulator to expedite uses of LPG gas instead of using natural gas," he added. DCCI President urged the government to withdraw the system of price declaration under existing VAT law. The Chamber leader proposed to increase the limit of annual turn over to Tk 10 million BDT from Tk 6.0 million and reduce the turn over tax to 2.0 per cent from 4.0 per cent to encourage the SMEs of the country. Mr Asif recommended to withdraw Advance Trade VAT (ATV) in advance on import. The DCCI president said that the proposed Alternative Dispute Resolution (ADR) Commission should be fully separated from the National Board of Revenue (NBR) adding, "If not, there will be no result from it and its implementation will not be fruitful." On income tax, the DCCI proposed to raise the income tax ceiling for individuals to Tk 2,25,000 from present Tk 1,65,000, for women and elderly persons to Tk 2,50,000 from present Tk 1,80,000 and for disabled persons Tk 2,75,000 from present Tk 2,00,000. The highest income tax rate has been proposed at 20 per cent from present 25 per cent. DCCI Senior Vice President T. I. M. Nurul Kabir, Vice President, Nasir Hossain, Directors Hossain A Sikder, Waqur Ahmed Choudhury, Khairul Majid Mahmud, Al-haj Md. Nasiruddin Khan, Absar Karim Chowdhury, M. Abu Horaira were present at the press briefing.