The Metropolitan Chamber of Commerce and Industry (MCCI) has urged the government to reduce the effective tax rate to increase investment, employment and revenue as well.
MCCI made the call at a pre-budget discussion with the officials of the National Board of Revenue (NBR) at its office in Dhaka on Wednesday.
MCCI President Kamran Tanvirur Rahman said, “Though the government reduced corporate tax by 2.5 per cent in several years on condition, companies do not get such benefit due to some conditions regarding transaction as the country’s informal economy is more than 80 per cent of the economy.”
“In reality, the corporate tax rate has exceeded to 40-50 per cent instead of 20 per cent for public limited companies due to higher source tax and disallowance of expenses,” he said.
Rahman also stressed the need for strengthening fully automation through e-invoicing.
Besides, MCCI has urged the revenue board to consider every element of businesses as goods or services element and change the relevant provision to strengthen the rebate system automation.
The MCCI president has requested the NBR to withdraw taxes on income derived from provident and other pension funds to reduce inequality among government and private jobholders.
Former MCCI president Nihad Kabir said, “NBR ensures punishment to businesses for their irregularities. But no irregularity is conducted by only business communities but there is deputy commissioner of taxes and other officials.”
“However, though we complain and there was proof, NBR had not taken any action yet against them,” Kabir added.
Acknowledging the situation, NBR Chairman Abu Hena Md Rahmatul Muneem said, “We require time to ensure transparency and accountability. We know that irregularities are conducted by both ends.”
“Most of allegations are correct but eliminating them overnight is not possible. We are trying to make efforts from our side to reduce hassle and harassment by digitalisation and changing the mindset.
“As well as, we are working relentlessly to create comfort zone for you so that businesses can run in faster and easier way. It will also help expand businesses and boost revenue,” he added.
He shares that due to their efforts, tax return submission will double in just four years since 2020. Tax return filing was around 21 lakh and the NBR chair hopes that it will be around 40 lakh by this fiscal year.
