The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) on Sunday proposed to the National Board of Revenue (NBR) to abolish the Advanced Income Tax (AIT) and Advance Tax (AT) from the fiscal year 2021-2022 to facilitate the country’s business.
The trade body also recommended launching an invoice-based bank-to-bank transaction process in every step of a business transaction, which it said would increase the government's revenue and the tax-GDP ratio.
The recommendation was made at the ‘Virtual 41st meeting of the Consultative Committee of the National Board of Revenue (NBR),’ jointly organised by the NBR and FBCCI.
Finance Minister AHM Mustafa Kamal was the chief guest in the webinar chaired by Abu Hena Md. Rahmatul Muneem, the Senior Secretary of Internal Resources Division (IRD) and Chairman of NBR.
FBCCI President Sheikh Fazle Fahim moderated the event.
The FBCCI also wished for enlisting alternative industries, product-based diversification and value chain upgrades in new industries - such as food production and processing industries, including ceramic tiles, all types of ceramic tableware and sanitary ware, refrigerators, light engineering, waste management, recycling under the Income Tax Ordinance 1984 that grants special incentives.
“Due to the lack of proper adjustments/refund of AIT, the operating expenses of businesses increase by a large sum. The procedural complexities of AIT reimbursement need to be addressed to ensure timeliness,” said Sheikh Fazle Fahim.
The cash flow in the domestic industry will decrease if AIT and AT is not accommodated, especially with the lockdown brought on by the second wave, said the FBCCI president.
The NBR Chairman said, “FBCCI is a crucial stakeholder and an exchange of views has been customary with the association, prior to every national fiscal budget session. All recommendations during the session will be taken into account in the upcoming budget plan for the fiscal year 2021-2022, and vetted through counselled clarifications; rationally.”
Finance Minister Kamal said, “The recommendations and issues brought by the business leaders and the associations will be taken into due consideration to be discussed with relevant bodies.”
