Businesses demand 5-year tax exemption for greenfield projects

The Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) has demanded a five-year tax exemption for greenfield projects to attract investment in the country.

The trade body has also demanded a 250 basis point tax cut in the corporate tax to encourage investment. 

They raised the demands at a roundtable on "National Budget 2022-2023: expectation and recommendation" on Saturday in the capital. The programme was attended by economists and representatives of different trade bodies. 

Presenting the keynote at the discussion, Chittagong Stock Exchange Chairman Asif Ibrahim said in order to increase investment in the capital market, the opportunity to invest should be provided to the undisclosed money with 10% tax (penalty). Besides, tax concessions need to be given to the listed SME companies.

There is no substitute to ease of doing business, he said, adding that coordination among different government agencies is needed for this.

"Coordination between the land registration office and the National Borad of Revenues has to be increased. In addition, e-TIN should be mandatory for holding tax which would be helpful to collect information about taxpayers' assets," he added.

Stressing on expanding the tax net, he said the revenue administration's activities have to reach the rural level.

To diversify the export basket, he suggested providing equal policy support to all sectors in addition to the apparel industry.

Policy Exchange of Bangladesh Chairman Masrur Reaz said the upcoming budget has to focus on several crucial things.

He said, "The budget should focus on recovery from Covid inflicted damages, keeping the trend of export and acceleration, re-employment by providing incentives, incentives for SME and informal sector business, controlling inflation and controlling the rising government expenditure."

President of BMCCI Syed Almas Kabir moderated the discussion.