Provision for undisclosed money investment can be kept: FBCCI

The Federation of Bangladesh Chambers of Commerce and Industries on Saturday said the government can allow the use of undisclosed income in productive sectors for a certain period to boost investment.

“Allowing the facility for a prolonged or indefinite period will be an injustice to regular taxpayers,” FBCCI President Md Jasim Uddin said while replying a question during a press briefing on the proposed budget for fiscal year 2021-22.

In the proposed budget, the government did not keep any provision for whitening undisclosed income. At a post-budget press briefing, Finance Minister AHM Mustafa Kamal said the government backtracked from providing the money whitening facility after analysing all aspects.

“There were mixed reactions,” he said. Allowing money whitening contributes to the economy but hinders equitable justice.

Reforming tax system

FBCCI chief Jasim urged the government to reform the existing tax system to make it investment-friendly. He also called for separating the policy wing of the National Board of Revenue from its implementation wing to lessen harassment of the taxpayers.

He proposed setting up VAT and income tax offices at the upazila level to increase tax coverage. “To encourage taxpayers, the NBR can also install necessary machines at the upazila level to make the tax payment system flexible,” he said.

Jasim also suggested promptly providing tax documents after tax payment.

He called for the formation of a coordination task force involving the finance ministry, NBR and FBCCI to simplify the VAT law.

He said that sector-wise inconsistencies (such as tax law) can be removed through greater coordination between business bodies and the government.

MCCI President Nihad Kabir, DCCI President Rizwan Mahmud, FBCCI Senior Vice President Mostafa Azad Chowdhury Babu, Vice President MA Momen, Amin Helali, Md Habib Ullah Don, among other were present in the programme.