FICCI seeks gradual cut in corporate tax

The Foreign Investors' Chamber of Commerce and Industry (FICCI) has proposed the National Board of Revenue (NBR) to cut corporate tax rates gradually and scrap the highest slab of individual tax at 30 per cent in the budget for the upcoming fiscal year (FY), 2015-16.
The chamber body also sought withdrawal of minimum tax on companies, imposed irrespective to their profit and loss.
A delegation of FICCI met NBR on Monday with its budget proposal.  
FICCI president Rupali Chowdhury said to attract foreign investment the country needs to cut corporate income tax, which neighbouring India has planned to bring down in phases.
In India, current corporate tax rate is 30 per cent, which is planned to be reduced to 25 per cent gradually by next four years, she said.
FICCI members also proposed NBR to withdraw supplementary duty (SD) on locally-produced goods from the next fiscal year, as there will be no SD on imported goods from July 2016.
Berger Paints Bangladesh Ltd Finance Director Abdul Khaleque placed a set of proposals, related to income tax, value-added tax and customs duties on behalf of FICCI.
In its proposal, FICCI said the minimum income tax is not justifiable, as all companies might not be able to make profit from the very beginning of their inception.
The chamber also demanded reduction in corporate tax at 25 per cent for publicly-traded companies and at 32.5 per cent for non-listed mobile-phone operators.
The FICCI members also termed the 'excess profit tax' on banks as discriminatory. Banks have to pay the tax at 15 per cent rate on the profit over 50 per cent of the capital and reserve.
It also wanted income tax rebate at 10 per cent for non-listed companies, which pay more than 30 per cent dividend.
FICCI proposed an increase in tax-free income ceiling for individual to Tk 3,00,000 from the existing Tk 2,20,000, considering high inflation and cost of living.
The chamber also said the revenue board should withdraw the provision of deducting tax at source at 3.0 per cent on the difference between sales price to distributor and retail price.
FICCI members proposed NBR to reduce duty on import of infant medical products, diaper and sanitary napkin, and withdrawal of excise duty on loan accounts.
Earlier, in a separate meeting, Bangladesh Solar Panel Manufacturers Association proposed NBR to ensure protection of local solar panel manufacturers and check import of sub-standard Chinese panel.
Institute of Cost and Management Accountants of Bangladesh requested the authority to audit transfer pricing and Alternative Dispute Resolution (ADR) tax files.
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