NBR-pvt sector partnership key to higher revenue: DCCI

In his initial budget reaction, Dhaka Chamber of Commerce and Industry (DCCI) President Md Sameer Sattar said the government has increased the tax-free income limit up to Tk 3.5 lakh, but considering the present inflation situation it should be increased to Tk 5 lakh.

He also suggested that the government withdraw compulsory Tk 2,000 tax for a TIN holder to avail of certain government services. But to fulfil the higher revenue target, he said it is important to implement automation in the taxation system and widen the tax net.

He also said the budget is big indeed and there is a deficit of Tk 2,61,785 crore but in order to implement such a large budget, partnership between the NBR and the private sector is more important to make it effective.

He hailed the decision of reducing the documentation process for corporate companies during tax return submission. In this budget, the corporate tax rate has not been reduced. But the DCCI president requested again to reduce at least 2.5 per cent for non-listed companies since our corporate tax rate is high in the South Asian region.

Tariff value and VAT at import of 13 petroleum and relevant products have been withdrawn to curb the energy price which will have a positive impact on the economy, he added.

The government will set a target to borrow Tk 1,32,395 crore from the banking sector which will hamper the private sector credit flow, he said. Besides, he suggested using ADR to realise NPL. He also suggested full automation in the VAT collection system.

He hailed the decision of reducing VAT on ICT and the home appliance sector. He stressed on effective, timely and priority-based implementation of ADP.

“We need to focus on import substitute industries and strengthening backward linkage industries to help the local industrialisation.”

He also recommended reducing gas price to curb the price of fertiliser for the betterment of the agriculture sector.