Budget to encourage new investment in shipping business: SCB

Extension of tax exemption

FE Team | Published: June 13, 2022 23:05:12

Md. Rezaul Karim, chairman of Shippers' Council of Bangladesh (SCB) said in the proposed budget for the fiscal 2022-2023, tax exemption has been extended till 2030 to encourage the movement of Bangladeshi flag ships. This will encourage new investment in this sector, helping employment growth and export diversification, said a statement.
It is, however, necessary to declare freight forwarding as a service industry. Reducing corporate tax rates on shipping agents and providing financial incentives to shipping agents are also necessary, said the chairman of the Shippers' Council of Bangladesh.
He said it is possible to implement the recently announced budget even if it is difficult.
"Some issues, however, need to be reconsidered and some policies are needed," he said in a budget reaction.
He said that the budget was timely considering the post-Corona economic recovery in the context of the Russia-Ukraine war.
He urged to reconsider deduction at source of bank interest of the companies which has been increased from 10 per cent to 20 per cent and the tax at the source of exported goods has been increased from 0.5 per cent to 1.0 per cent.
"The same tax rate for all export oriented industries as applicable to readymade garment industry will play an important role in diversifying export products," he added.