Home ›› 29 Mar 2023 ›› Front

FBCCI for geography-based LTUs to boost revenue

Staff Correspondent
29 Mar 2023 00:00:00 | Update: 28 Mar 2023 22:39:37
FBCCI for geography-based LTUs to boost revenue

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has proposed the National Board of Revenue (NBR) to set up geography-based Large Taxpayers Units (LTUs) aiming to monitor especially large companies to boost revenue.

“If the NBR rationalises the VAT on small and medium enterprises (SMEs), revenue will not be affected, rather the cost of revenue will come down drastically and those enterprises will be gradually accelerated as more VAT-paying companies,” the apex trade body said in its budget proposal on VAT for FY24.

The suggestions came up at a meeting with the VAT officials held at the head office of the revenue board in the capital on Tuesday.

“The revenue board collects a major portion of the country’s revenue from around 500 companies such as tobacco, telecommunication, gas, banking and beverage companies etc. So, the revenue board will have to monitor them under special management and reduce tax burden on small enterprises to boost revenue,” the proposal reads.

The trade body also proposed to withdraw VAT and supplementary duty on goods, consumed by low earners and poor people, general transportation for goods, essential goods and services.

It demanded withdrawal of VAT and supplementary duty on raw materials for local industries, waste management, and recycling, direct reparation of goods or the service sector other than tender etc.

In addition, FBCCI demanded a 15 per cent VAT on transaction value of goods and services with an adjustment facility of input VAT from output VAT. “If input VAT is not adjusted, the revenue board has to slap 0.5 per cent VAT on transaction value at retail and wholesale levels.”

The apex trade body also urged the authority concerned to impose a uniform rate of 15 per cent VAT on all goods and services sector to reduce uneven tax rate, complexities and ease tax management. To reduce the operating costs of industries, FBCCI urged the revenue board to withdraw advance income tax and advance tax on imports paying by the industrial sector.