Pre-budget parley with NBR
e-CAB calls for lifting minimum turnover tax
It also suggests revising TDS rate
FE REPORT | Thursday, 17 February 2022
The country's e-commerce operators urged the government on Wednesday to withdraw minimum tax on turnover, revise rate of tax deducted at source (TDS), and review bar on their promotional expenses, as the sector is still at flourishing stage.
The e-Commerce Association of Bangladesh (e-CAB) also called for introducing digital VAT chalan, as well as withdrawing obligatory VAT-registration system for the companies having an annual turnover up to Tk 30 million.
They came up with the requests at a discussion ahead of the budget for fiscal year 2022-23, organised by the National Board of Revenue (NBR) at its office in the city's Segunbagicha area.
NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting, where the Bangladesh Publishers and Book-Sellers Association (BAPUS) also came up with their demands ahead of the budget.
NBR members Sams Uddin Ahmed and Zakia Sultana, e-CAB president Shomi Kaiser, BAPUS advisor Osman Gani, and its central committee vice president Majharul Islam attended the meeting, among others.
Placing the budget proposals, the e-CAB leaders said there is ambiguity in the definition of online retail and market place, which needs to be upgraded, and taxes and other duties should be imposed accordingly.
Fahim Mashroor, an e-CAB member, said the country's e-commerce market is still at a nascent stage, which needs the government's support to flourish properly.
"Only three to four per cent of the total population make online purchase here, which is over 25 per cent for many countries."
If provided with required support to flourish at present, the country's e-commerce sector would pay off with huge revenue in future, he observed.
The BAPUS leaders urged the NBR to reduce higher duty on imported paper - key raw material of the publishing sector, and review TDS on them, so that they can minimise cost of books to help spread knowledge in the society.
The publishers said the sector has to pay higher amount of TDS, which is 'unrealistic' and 'irrational'.
The NBR chairman said the businesses, along with their requests to exempt taxes, should consider the importance of revenue for the country's development.
"All should look for scopes to contribute to the country's economy from their respective sides."
"Everyone wishes to see the country's development, but tries not to pay taxes," he added.