FBCCI wants withdrawal of source tax on essential commodities
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has demanded withdrawal of source tax on all types of essential commodities including rice, wheat, potatoes, and onions.
FBCCI President Md Mahbubul Alam presented the proposal during the 44th meeting of the Advisory Committee of the National Board of Revenue on Thursday (4 April).
In the written proposal, Mahbubul Alam highlighted that under the existing law, daily essentials such as rice, wheat, potatoes, onions, garlic, salt, cooking oil, sugar, and all types of fruits are subjected to a 2% tax at the supply stage.
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This results in an increase in consumer goods prices, he said.
Therefore, he proposed excluding all agricultural daily consumable products from the purview of tax deduction at the source.
In the written statement, FBCCI informed that the rate of tax at source applicable to all exports, including the export-oriented garment industry, has been reduced from 1% to 0.50%, and will remain effective for the next 5 years.
Additionally, the income tax deduction rate on cash assistance has been reduced from 10% to 5%.
Finance Minister Abul Hassan Mahmood Ali and National Board of Revenue (NBR) Chairman Abu Hena Rahmatul Munim were also present at the meeting held at a hotel in the capital.
