FBCCI for raising individuals' tax-free income threshold

Country's apex trade body on Saturday urged the government to increase the tax-free income threshold for the individual taxpayers to at least Tk 400,000 considering the adverse impact of Covid-19 pandemic and mounting inflation.
"Please review the proposed tax-free income limit in the wake of the pandemic and mounting inflation," Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told a post-budget press conference in the city.
He argued with an example from India where the tax-free income limit is 500,000 rupee as compared to only Tk 300,000 in Bangladesh.

DCCI president Rizwan Rahman, BKMEA president Mohammad Hatem, FBCCI senior vice president Mostofa Azad Chowdhury Babu and vice-president MA Momen, among others, were present at the press conference.
Mr Jashim put forward a number of proposals to include in the proposed national budget for fiscal year (FY) 2022-23 before passing it in parliament.
He also expressed the trade body's general satisfaction, and extended gratitude to the government for formulating a business-and investment-friendly budget.
The apex trade body leader, however, expressed disappointment over the proposed advance income tax (AIT), advance tax (AT) and tax deducted at source (TDS) on exports, and apprehended that it might cause disruptions in the ease of doing business.
"Increasing tax at source from 0.50 per cent to 1.0 per cent on export is a discouraging measure," he said, urging the government to reinstate it at the existing rate.
The FBCCI reiterated their proposal to remove the existing AT and AIT in the interest of the business community as the operating cost of business increases due to such advance taxes.
"Despite a reduction in corporate taxes, the traders will not be able to take advantage of this opportunity without withdrawal of AIT and AT," said its president.
He said that good governance, proper monitoring, investment and trade-friendly tax management will remain as the big challenges to implement the budget in the next FY. "Skill, transparency, accountability and monitoring must be ensured to implement the budget."
The FBCCI president thanked Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal for keeping an allocation for the FBCCI innovation centre.
He voiced concerns over offering money launderers an opportunity to legalise unreported offshore assets without facing any questions from the authorities.
The introduction of such a facility will encourage people to launder money abroad, he added.
Mr Jashim said that inside the country, one has to pay taxes at rates ranging from 22-27 per cent whereas the money laundered abroad will be brought back home at a tax rate of 7.0 per cent only. "So the money launderers are getting around 18 per cent discount."
He said the policy and implementation wings of the National Board of Revenue (NBR) should be separated to execute the tax plan effectively.
The tax-GDP ratio will not increase to an expected level unless the NBR's operation is automated. "We implement so many mega projects, why can't we automate the NBR operations."
The FBCCI president criticised the NBR for waiting for funds from the World Bank or other agencies for implementing the tax automation system.
He also opposed the idea of collecting VAT through appointing a third party. "Give us one per cent rebate, we will collect our VAT. We don't need a third party."
He said everybody wants to pay tax but the NBR needed to be efficient to increase the tax-GDP ratio.
The FBCCI president criticised withdrawal of VAT exemptions on Covid-19 test kits, PPP, plastic face shield and masks as Covid situation still persists.
The FBCCI also proposed to fix the VAT at 0.5 per cent at local level.
Replying to a question, DCCI President Rizwan Rahman said the provision of granting extra judiciary power to taxmen for penalising the tax defaulters up to Tk 5.0 million will increase harassment.
"If anyone doesn't pay tax, defaults or evades it, bring him under law, let him face court. Why is there such an extra judiciary power for the taxmen?" he said, adding that the FBCCI will never accept such a provision.
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