DCCI to propose lowering corporate tax by 2.5%

The Dhaka Chamber of Commerce and Industry will propose the National Board of Revenue to reduce corporate tax for listed and non-listed companies by 2.5 per cent from the existing 22.5 per cent to 30 per cent in the upcoming national budget for the 2022-23 fiscal year.

DCCI President Rizwan Rahman is expected to present 41 proposals to the NBR on March 9 at its office.

Rizwan told The Business Post he will return home from Dubai on Wednesday morning and present their proposals at the pre-budget discussion meeting with the NBR in the afternoon.

The corporate tax rate in Bangladesh is 10 per cent higher than Vietnam, Cambodia, and Thailand and 6 per cent higher than Sri Lanka. The trade body will recommend the government to reduce the rate in order to sustain businesses amid the Covid-19 pandemic situation and increase investment in Bangladesh. The DCCI will also propose to reduce tax on corporate dividend income to 10 per cent from the existing 20 per cent and decrease tax on dividend grainer to 5 per cent from 10 per cent.

The DCCI will propose making private research institutions, universities and other entities eligible to get funds for research and development from the government allocated Tk 50 crore.

The organisation also will propose declaring incomes of companies investing up to 5 per cent for research and development, skill development, and activities for sustainable economic development tax-free.

The DCCI will request the NBR to automate tax management as well.

Besides, the organisation will request the government to increase the upper limit of annual turnover to Tk 4 crore from the current Tk 3 crore, and impose turnover taxes based on product value addition to increase the tax net. It will also recommend continuing VAT exemption for jute product sales in the local market for five years more.

The DCCI thinks the government should provide the leather and leather products with the same facilities for other export-oriented industries and delays in receiving the bond licence for leather products and shoe industries should be reduced. The body will propose to increase the bond licence renewal period for leather and leather products up to 3 years like the apparel industry.

It will also propose exempting tax on locally produced machinery and other equipment for setting up charging stations for electric vehicles.