SCB for reduction of corporate tax

Shippers' Council of Bangladesh (SCB) has termed the proposed budget business-friendly.

"The budget has fixed the target of GDP growth at 8.2 per cent and inflation 5.4 per cent, which is praise-worthy. The initiative of increasing investment and employment is also appreciated," Md. Rezaul Karim, Chairman of SCB said in a statement.

He said that more allocations have been made for the development of the agricultural sector to keep the economy afloat at this juncture of the country and all

the steps that have been taken are very timely.

Subsidy in the agricultural sector has been increased to taka 9,500 crore and taka 5000 crore has been allocated for agriculture re-financing scheme, which is appreciable and it will boost this sector.

He welcomed the initiative of tax-free income limit of Tk. 3 lac and setting a minimum income tax rate of 5 per cent and a maximum income tax rate 25 per cent.

However, he requested to increase the tax-free income limit from Tk. 3 lac to Tk. 3 lac 50 thousand and also suggested more reduction of corporate tax.

He thanked the government for giving stimulus to the industries in the Budget but requested for exemption of advance income tax and waiver of advance tax on readymade garments, leather, jute & jute products and agro-processing.

With the increase in source tax on export from 0.25 per cent to 0.50 per cent, readymade garments will face challenges in this critical time.

He requested to reduce the source tax on exports of readymade garments along with other products and be continued for the next five years.

The SCB suggested for reducing the increased supplementary duty on the purchase & usage of SIM & RIM cards and internet usage.

He requested to waive the withholding tax on cash subsidies on export for sustaining the export-oriented industry in the post-corona situation.