FBCCI makes recommendations for next budget
Dhaka, May 15 (UNB) – Despite acknowledging that the rate of corporate tax is high in Bangladesh, Finance Minister AMA Muhith on Tuesday hinted that there might be no steps in the next national budget in lowering the corporate tax rates.
“It’s true that the rates are high. But I’m sorry, this time it won’t be possible to do something special about corporate tax,” he said when a delegation of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) apprised the Finance Minister of their recommendations for the next national budget for fiscal 2012-13.
FBCCI 1st vice president M Jasim Uddin led the delegation while its vice president Mostafa Azad Chowdhury Babu was also present during the meeting at the Finance Ministry.
On reducing budget deficit, Muhith said the budget deficit in Bangladesh is very low and it has always been less than five percent of GDP.
He said that the budget deficit in the current year was 5.1 percent of GDP and it would be within 5 percent in the next year as well.
In their proposal for the FY13, the FBCCI recommended the Finance Minister to fix the corporate tax rates for the publicly traded companies at 32.5 percent (if the company gives less than 10% dividend), at 25 percent (if it gives above 10% and below 20% dividend), and at 22.5 percent (if the company gives above 20% dividend).
The apex trade body also suggested fixing the corporate tax rate for manufacturing companies at 32.5 percent; non-manufacturing companies at 35 percent; bank, insurance and financial leasing institutions at 40 percent; and cigarette manufacturing and mobile phone operating companies at 42.5 percent.
The FBBCI also recommended increasing the individual income tax ceiling to Tk 220,000 from existing Tk 180,000; for women to Tk 250,000 from existing Tk 200,000 and for the elderly (above 65) and disabled persons to Tk 300,000 from existing Tk 250,000.
They also suggested increasing the minimum income tax to Tk 2,200 from existing Tk 200.
The leaders of the apex trade body also called for increasing the period of tax holiday facility for industries to June 2015 from the existing June 2013, reviewing turnover tax, fixing specific duty, withdrawing VAT on rent of building as well as tax on trade bodies.
On duty-related proposals, they demanded fixing duty at 1 percent on import of capital machinery and basic raw materials, at 3 percent on import of intermediary raw materials, and at 25 percent on the manufactured and luxurious items.
The FBCCI leaders also demanded withdrawal of Advance Income Tax (AIT) on basic raw materials, setting up scanners at the ports, bringing the ports under full automation through establishing transaction value and data bank under joint NBR and FBCCI management.
Earlier, in his speech, FBCCI 1st vice president M Jasim Uddin suggested enhancing the efficiency level of old power plants through BMRI and finalizing a practical size Annual Development Programme for the next fiscal.
FBCCI vice president Mostafa Azad Chowdhury Babu suggested providing scope for investing undisclosed money to facilitate the sick industries.
“It’s true that the rates are high. But I’m sorry, this time it won’t be possible to do something special about corporate tax,” he said when a delegation of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) apprised the Finance Minister of their recommendations for the next national budget for fiscal 2012-13.
FBCCI 1st vice president M Jasim Uddin led the delegation while its vice president Mostafa Azad Chowdhury Babu was also present during the meeting at the Finance Ministry.
On reducing budget deficit, Muhith said the budget deficit in Bangladesh is very low and it has always been less than five percent of GDP.
He said that the budget deficit in the current year was 5.1 percent of GDP and it would be within 5 percent in the next year as well.
In their proposal for the FY13, the FBCCI recommended the Finance Minister to fix the corporate tax rates for the publicly traded companies at 32.5 percent (if the company gives less than 10% dividend), at 25 percent (if it gives above 10% and below 20% dividend), and at 22.5 percent (if the company gives above 20% dividend).
The apex trade body also suggested fixing the corporate tax rate for manufacturing companies at 32.5 percent; non-manufacturing companies at 35 percent; bank, insurance and financial leasing institutions at 40 percent; and cigarette manufacturing and mobile phone operating companies at 42.5 percent.
The FBBCI also recommended increasing the individual income tax ceiling to Tk 220,000 from existing Tk 180,000; for women to Tk 250,000 from existing Tk 200,000 and for the elderly (above 65) and disabled persons to Tk 300,000 from existing Tk 250,000.
They also suggested increasing the minimum income tax to Tk 2,200 from existing Tk 200.
The leaders of the apex trade body also called for increasing the period of tax holiday facility for industries to June 2015 from the existing June 2013, reviewing turnover tax, fixing specific duty, withdrawing VAT on rent of building as well as tax on trade bodies.
On duty-related proposals, they demanded fixing duty at 1 percent on import of capital machinery and basic raw materials, at 3 percent on import of intermediary raw materials, and at 25 percent on the manufactured and luxurious items.
The FBCCI leaders also demanded withdrawal of Advance Income Tax (AIT) on basic raw materials, setting up scanners at the ports, bringing the ports under full automation through establishing transaction value and data bank under joint NBR and FBCCI management.
Earlier, in his speech, FBCCI 1st vice president M Jasim Uddin suggested enhancing the efficiency level of old power plants through BMRI and finalizing a practical size Annual Development Programme for the next fiscal.
FBCCI vice president Mostafa Azad Chowdhury Babu suggested providing scope for investing undisclosed money to facilitate the sick industries.
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