The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Thursday placed a set a recommendations before the government, including that of raising the tax free income ceiling of individual taxpayers, for considering those in the budget for the next fiscal year (FY25).
The country's apex trade body proposed for raising the tax free income ceiling for individual taxpayers by Taka one lakh to Taka 4.50 lakh in the next budget and raising such tax free limit to Taka 5 lakh for the senior citizens and women considering the current inflation and the real income of low income people.
The NBR made their specific proposals in macroeconomic sector, revenue reforms, on income tax, VAT and Customs.
The locally Owned Cigarette Manufacturers Association is aligning with the Prime Minister's objective of a smoke-free Smart Bangladesh by 2041 by urging coordinated efforts to reduce the number of smokers gradually throughout the country.
Representative of locally owned cigarette manufacturers association Iqbal Anwar conveyed these demands during the 44th meeting of the National Board of Revenue Advisory Committee, held at a capital hotel on Thursday.
The Association reiterated the government’s commitment, evidenced by the decision to phase out cigarettes in the 2018-19 fiscal year budget, underscoring the associated public health risks.
Acknowledging the directive from Prime Minister Sheikh Hasina, the Association emphasized the necessity for a cohesive strategy to curtail smoking rates effectively. However, the omnipresence of internationally renowned cigarette brands at competitive prices in locales such as village markets, local places, and city areas poses a substantial challenge, exacerbating public health risks.
Highlighting the current market dynamics, the Association pointed out the dominance of foreign companies, holding nearly 90 percent of the market share for high-quality cigarette brands. This trend impedes efforts to reduce smoking prevalence, necessitating immediate intervention.
In response, the Association proposed strategic measures in the 2024-25 fiscal year budget to eliminate cigarettes from the market by 2041. These measures include augmenting prices and taxes on mid-range production while maintaining the status quo on low-end products.
Anticipating a positive impact, the Association projected an estimated revenue collection of Tk 39000 crores in the sector for the fiscal year 2024-25, marking a substantial 25 percent increase compared to the current fiscal year.
FBCCI President Mahbubul Alam placed the proposals while addressing the 44th NBR-FBCCI Consultative Committee Meeting on the budget for the next fiscal year (FY25) held at a city hotel. Finance Minister Abul Hassan Mahmood Ali spoke at the meeting as the chief guest while State Minister for Finance Waseqa Ayesha Khan spoke on the occasion as special guest. NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting. FBCCI president Mahbubul Alam moderated the meeting while senior Vice President of FBCCI Md Amin Helaly gave the vote of thanks.
Business leaders representing various chambers, associations and sectors put forwarded their suggestions in the meeting on the next budget while three separate presentations were made on income tax, customs and VAT by concerned NBR members. In the proposals on revenue reforms, the FBCCI president demanded for separating the operations on revenue collection and revenue policy and thus forming a trade facilitation department.
The country's apex trade body also proposed for integration and automation of tax, VAT, customs administration as well as forming a separate Large Taxpayers Unit in Dhaka and Chattogram. Mahbubul also proposed for setting tax offices at upazila level to raise the number of taxpayers and thus increasing revenues.
He urged the government to give special priority on ensuring a business friendly tax management through reducing harassment and complexities in tax collection as well as ensuring transparency and good governance in various areas.
The chief of the country's apex trade body also demanded for reducing cost of doing business, ensuring investment protection, enhancing port capacity, ensuring balanced investment friendly monetary and customs management, reducing all kinds of transportation cost including shipping cost, developing permanent infrastructures in power and energy sector.
The FBCCI in its budget proposal also proposed for reducing tax at source against all kinds of exports including export oriented RMG at 0.50 percent from 1 percent and thus keep it for five years. Besides, it also suggested for reducing the tax at 5 percent from 10 percent on cash support.
Mahbubul said, "It's my belief that the the next budget would reflect a far sighted, practical, and time befitting plan to give the country's private sector a firm footing in order to face the challenges of globalization."
Taking part in the meeting, Bangladesh Textiles Mills Association (BTMA) president Mohammad Ali Khokon demanded for withdrawing VAT on recycled fiber as it could save foreign currency worth $4.3 billion.
He also demanded for ensuring uninterrupted power and energy supply to the industries as well as rolling out an exit policy from bank loans for those businesses which could not run their businesses properly due to various adversities.
BKMEA executive president Mohammad Hatem demanded for scrapping the provision for taking Advance Income Tax or adjusting it with the concerned income tax returns.
DCCI president Ashraf Ahmed suggested for taking measures to adjust Advance Income Tax in the concerned tax year.
FICCI President Javed Akhter proposed for devising a comprehensive digital architecture to mobilize more internal revenues and ensuring transparency through automation.
Former Gazipur City Corporation Mayor Jahangir Alam representing Gazipur Metropolitan Chamber demanded for reducing the harassment by the field-level officials of the NBR.