রবিবার, ২১ জুলাই ২০২৪, ০৭:৫৩ পূর্বাহ্ন




FICCI Wants Reduction of Effective Tax Rate to Improve Business Climate

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  • প্রকাশের সময় : বুধবার, ১ মার্চ, ২০২৩ ৬:১৮ pm
Foreign Investors' Chamber of Commerce and Industry FICCI logo ফরেন ইনভেস্টরস চেম্বার অব কমার্স অ্যান্ড ইন্ডাস্ট্রি’ ফিকি
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The Foreign Investors’ Chamber of Commerce and Industry (FICCI) have placed their proposal at a pre-budget consultation meeting organized by the National Board of Revenue (NBR) on Wednesday, 1st March 2023. FICCI delegation led by the President Naser Ezaz Bijoy, members of Board of Directors, committee members and executive director attended the meeting at the Rajashwa Bhaban in city’s Agargaon.

NBR chairman Abu Hena Md. Rahmatul Muneem Presided over the meeting while other respected members and senior officials of NBR were also participated.

In the consultation meeting FICCI President Naser Ezaz Bijoy proposed for reduction of effective tax rate. He said, “The effective tax rate prevailing in our country is extravagant. Though the applicable corporate tax is 20% and 27.5% for the publicly traded and private limited company respectively, effective tax rate is much higher due to the implication of 30B, 82C (2) and deduction of tax at source. Therefore, we are proposing to reduce the effective tax rate in conjunction with the tax rate in our neighboring countries.”

FICCI also recommended for Rationalization of Tax Deduction at Source (TDS). President stated, “In certain cases, TDS is considered minimum tax for that source of income. Even though the corporate tax is reduced to 27.5% after maintaining certain conditions, still the business is unable to recap the benefits. Therefore, the impact of minimum tax against TDS should be rationalized.”

He suggested to use DVS system to identify income and expense which can be useful to rationalize TDS and eliminate TDS from the minimum tax provision gradually.

Regarding digitalization and integration Naser Ezaz Bijoy appreciated some initiatives taken by NBR to digitalize the regular routine work such as return submission, Acknowledgement and return submission confirmation, A- challan on TDS etc.

Meantime, he also expressed concern that they are observing the digitalization process is very slow. He recommended to implement the digitalization at all levels so that taxpayer’s hassle will be minimized. For instance, online hearing in assessment, CTA, TAT, ADR.

Chamber’s President mentioned, “at present every registered person is required to issue a tax invoice (Section 6.3) manually while making supplies. The current process is consuming time as well as an obstacle to the pathway of digitalization. If we look into the world economy, our national economy is doing well in comparison to the world market. Hence, the technique used to gather Mushak must adhere to international standards.”

He recommended to the development of an automated VAT challan, also known as an E-Invoice or Electronic VAT challan, which must replace the need for a manual tax challan. The implementation of this system will make it much simpler for taxpayers to conduct business while also making it much simpler to oversee the tax authorities and taxpayers. Hence, Issuance of tax invoices (Mushak-6.3) should be automated, and E-Invoice or Electronic VAT challan should be introduced,” added by the President.

FICCI President opined that, by correctly implementing the customs assessment rules, duties should be calculated depending on the exchange rate. Only in exceptional circumstances, where it is impossible to identify the exchange rate, should the following guidelines ensure that they are applied in light of the rules as explained.

To acquire up-to-date information about the global market, our further recommendation is to subscribe to the NBR product database, he added.

President said, “We have observed over the last few years that NBR has changed the HS codes for various products that is complete disagreement of WCO HS code’s guidelines. For reclassification variation, the importer is suffering huge cost on importation. Therefore, we are recommending to remove this sorts of reclassification on the products HS Code.”




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