BMCCI wants steps to reduce taxes, cost of doing business

Speakers at a programme on Saturday urged the government to take necessary initiatives in the upcoming budget to reduce the prices of daily essentials, taxes rate, and cost of doing business, and to ensure consistency in policy.

They also urged the National Board of Revenue (NBR) for simplifying the taxation system and tax reforms for facilitating the private sector to grow so that they can compete with the international market.

They also urged the NBR to keep the tax rate steady for at least the next five years as a frequent change in the rate chart makes tension for business people.

They made the remarks at the programme titled “National Budget 2023-24: Expectations and Recommendations” organised by the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) in the capital.

While presenting the keynote paper, Economist Dr Ahsan H Mansur said Bangladesh’s social spending is dismally low by the international standards and recommended levels.

“The IMF program also envisages that the level of social protection must be protected and increased under the IMF program,” he added.

Mansur, also PRI executive director, said the fiscal stance in FY24, as measured by the overall budget deficit, should be non-expansionary.

Dr Mansur said about the macroeconomic uncertainties in preparing the budget because of high inflation and persistent dollar shortages. These factors will lead to lower imports, investment, and slower economic growth.

He also added that household demand will be subdued with real wages declining in many instances due to higher inflation. But to ease the situation he appreciated the measures taken by the government.

BMCCI President Syed Almas Kabir moderated the program. He said only 3 million people submit their tax returns every year but the number should be expanded. He also requested to reduce corporate tax for non-listed companies and enhance the tax-free income limit for the individual from the existing 3 lac to 5 lac considering current inflation and cost of living. Till 2041, Bangladesh will need an investment of about USD 609 billion for the infrastructure sector.

He urged for a financial source mapping for this investment. In order to enhance our export competitiveness, we have to go for export diversification and explore new potential sectors. This year’s budget should focus on increasing the scope of income tax and value-added tax, ensuring transparency in income tax collection, complete automation of the tax system, export diversification, encouraging local industrialization, and ensuring an investment-friendly environment to achieve economic growth targets.