As part of preparations for the LDC graduation, the government is trying to provide special incentives to the ICT, advanced technology, goods, and services sectors to increase the production of high-value products.
The government is also providing support to heavy industries to discourage the import of luxury goods, and to increase the production of those goods in the country.
National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem made the remarks at a pre-budget discussion with the Chittagong Chamber of Commerce and Industry (CCCI), held at Chattogram’s Agrabad area on Thursday.
Speaking as the chief guest, Muneem said, “The NBR’s timely action to increase the tax to GDP ratio resulted in income tax return filings of around 37 lakhs in 2024, which was 21 lakhs in 2020. In 2024, the VAT returns stood at 5 lakhs, which was only 2 lakh in 2020.
“The board is gradually working to increase the tax net, so that the tax burden decreases on individual taxpayers.”
In his welcome speech, CCCI President Omar Hazzaz said, “The Tax-to-GDP ratio needs to be increased, but before aggressively implementing fiscal policy, the NBR has to consider whether the private sector businessmen are able and ready to take the pressure amid economic crisis.”
It should be noted that due to the complexity of various sections of the tax policy, private company tax is fixed at 27.5 per cent, but in reality, the total tax is over 40 per cent – 50 per cent for all types of businesses.
The tightening of monetary policy has already made investments in the country more expensive. Hence, if fiscal policy enforcement pressure continues to increase, investment expansion will be hampered and existing investors will also be discouraged.
“Therefore, it is very important to create an investment-friendly fiscal policy and environment to attract domestic and foreign investment to make the government's investment in infrastructure development fruitful,” he added.
Referring to the formulation of the Income Tax Act 2023 as a breakthrough, CCCI Senior Vice-President Tarafder Md Ruhul Amin recommended tax exemption to chambers/trade organisations, domestic trusts, or foundation institutions.
Besides, he emphasised on the addition of customs' export scanning machines at ports, and installation of scanning machines at off docks to ensure uninterrupted exports.
Member (Customs: Policy and ICT) Md Masud Sadiq, First Secretary (VAT Policy) Mohammad Hasmat Ali, and Second Secretary (Tax Policy) Bapan Chandra Das presented articles on VAT, Tax, and Income Tax attended the meeting on behalf of NBR.
In the meeting, PHP Family Directors Mohammed Zahirul Islam and Mohammed Akhter Parvez discussed various proposals related to customs, customs, and income tax.
BSRM Managing Director Aameir Alihussain, TK Group Advisor Md Zafar Alam, Confidence Cement Managing Director Zahir Uddin, C&F Agent General Secretary Kazi Mahmud Imam Bilu, CCCI Director AKM Akther Hossain, Mahfuzul Haque Shah, Anjan Shekhar Das were also there.
Mohammed Zahirul Islam said, “We pay tax on full shipping weight during the import process. Tax is payable on every item on the ship. I urge you to consider the matter.”
Mohammed Akhter Parvez said, “Thanks to the NBR for the CKD factory. Getting the Best Tax Payer Award is a big achievement in my life.”
Aameir Alihussain said, “There is a green movement in the world. So, duty-free facilities should be given to solar power equipment, and structures.”
Zahir Uddin said, “We are unable to open LCs for industrial raw materials, even though the village fruit shops are teeming with imported fruits. The official USD rate is Tk 110, accounting has to be done at Tk 120. We are buying clinkers at $43, and paying $60 as duty.”
Other speakers discussed the de-complication of the HS Code, ensuring customs valuation and assessment of product value as per International Trade Organization standards, no imposition of 200 per cent – 400 per cent customs penalty due to minor and inadvertent errors, quick refund of advance tax, ease of audit, maximum VAT rate in single digits.
They also demanded that in the case of the first appeal of VAT, withdrawing the rule of depositing 20 per cent on the claimed tax, and protection and incentives to the domestic manufacturing industries, manpower and lab, and technical capacity of Chittagong Customs.
