The Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) has recommended the National Board of Revenue (NBR) reconsider the budget proposal for the fiscal year 2024 and slap 5 per cent tax on land and flat registration.
The apex trade body has also demanded a 2 per cent gain tax, 0.5 per cent stamp duty, 0.5 per cent registration fee, 1 per cent local government tax and 1 per cent VAT.
“As the cost of flat or land registration fee has increased, buyers are losing interest to register at actual price. As a result, the government is deprived of huge revenue from this sector,” its President Md Jashim Uddin said in a letter written to NBR chairman Abu Hena Md Rahmatul Muneem putting forward the recommendations on the proposed national budget for the upcoming fiscal year.
According to the letter, the registration fee in Bangladesh is very high compared to other SAARC countries and the registration fee in other SAARC countries is not more than 4-5 per cent.
FBCCI also demanded withdrawal of Advance Income Tax (AIT) and Advance Tax (AT) on imports of various raw materials.
The organisation said that due to such taxes at import stage, the cost of capital is increasing and banks are calculating the interest on the sum of money. For not adjustment of these taxes properly and refunds, the operating cost of doing business is increasing steeply.
“Withdrawal of advance taxes will help reduce the cost of production, thus it will increase the demand and sales of products. As a result, the government will be able to earn additional revenue through VAT collection,” it said.
It also recommended raising the tax-free income limit from Tk 3.5 lakh to Tk 4 lakh, reducing source tax on all exports, including export-oriented garment industries, to 0.5 per cent from 1 per cent, and abolishing income tax on incentives for all export-oriented industries.
The apex trade body also sought withdrawal of 2 per cent tax at source on payments of cotton, AIT and AT from flex fiber, 0.5 per cent source tax on wholesale yarn and cotton transactions and AIT on cement and limestone.
Proposals regarding customs duty
FBCCI demanded duty waiver on import of raw materials for essential goods for five years, retention of customs duty on cement clinker, withdrawal of proposed duty on apples, oranges and dates, retention of the same duty rate on import of software.
It also recommended continuing rebate facilities on import of capital parts of hotels and withdrawal of duty on import of materials of plastic toys.
Recommendations related VAT
The organisation demanded imposition of 1 per cent VAT on turnover of wholesale textile traders, withdrawal of 15 per cent VAT on export-oriented recycled fiber spinning, retention of tax at source on land registration, exclusion of source tax on suppliers of materials, raw materials, printing-packaging and binding to industrial establishments.
It recommended keeping 5 per cent VAT as earlier on all types of plastic tableware, kitchen ware, household items, hygienic and toilet goods, levying 4.5 per cent VAT on PVC pipes produced in the country, and withdrawal of 15 per cent VAT on ballpoint pens.
It also demanded withdrawal of VAT on software production and customisation services and continuation of the VAT rate as before on household goods made of aluminum and furniture.
