President of Dhaka Chamber of Commerce & Industry (DCCI) Barrister Md. Sameer Sattar in his initial budget reaction said that government has increased tax free income limit up 350000 taka but considering the present inflation situation it should be increased to 5 lakh taka.
Passing reaction on behalf of DCCI instantly after announcing the proposed budget on Thursday he suggested government to withdraw compulsory 2000 taka tax for a TIN holder to avail certain government services. But to fulfill the higher revenue target he said that it is important to implement automation in the taxation system and widening the tax net.
He also said that the budget is big indeed and there is a deficit of taka 261785 crore but in order to implement such a large budget partnership between NBR and private sector is more important to make it effective.
He hailed the decision of reducing documentation process at the time of corporate companies withholding tax return submission. In this budget corporate tax rate has not been reduced. But Barrister Sattar requested again to reduce at least 2.5% for non-listed companies since our corporate tax rate is high in the South Asian region.
Tariff value and VAT at import of 13 petroleum and relevant products have been withdrawn to curb the energy price which will have a positive impact on our economy, he added.
Government will set a target to borrow taka 132395 crore from the banking sector that will hamper the private sector credit flow, he said. Besides, he suggested to use ADR to realize NPL. He also suggested to do full automation in the VAT collection system.
Hailing the decision of reducing VAT on ICT and home appliance sector, he stressed on effective, timely and priority-based implementation of ADP.
He said we need to focus on import substitute industries and strengthening backward linkage industry to help the local industrialization.
Sattar recommended to reduce gas price to curb the price of fertilizer for the betterment of agriculture sector.