BCI proposes raising VAT-free turnover limit to Tk4cr

The Bangladesh Chamber of Industries (BCI) has proposed to raise the VAT-free annual turnover ceiling to Tk4 crore from Tk3 crore for small businesses due to the hike in operation cost resulting from inflation.

"Gross profit is determined sector-wise which is not rational. Besides, decrease in gross profit or loss in businesses are not taken into account. Moreover, if sales drop in a year compared to the previous year, the tax authorities do not take that into account . These practices should be put to an end," said BCI President Anwar-ul Alam Chowdhury in the pre-budget discussion for FY24, organised by the National Board of Revenue (NBR) at Agargaon yesterday.

He said, "Turnover tax is levied even if the businesses suffer losses, which burdens organisations. As per Section 82C of the Income Tax Act, tax is deducted at source as the lowest tax. But later it is again taken up in assessment. We propose to treat tax at source as the final tax liability."

According to the BCI proposal, in case of acquiring assets, the provision of treating tax not deducted at source as income from other sources should be abolished.

They also proposed setting maximum 3% source tax on industrial raw material imports, exemption of VAT on all types of utilities in the micro, cottage and small industries, provision of bonded-warehouse facilities to sector-based export-oriented enterprises comprising small industries and women entrepreneurs, provision of a minimum five-year tax holiday for young industrial entrepreneurs and 10%-15% tax for them from the following years.

The BCI also proposed a 2.5% corporate tax cut, imposing 0.1% tax at source and 10% income tax for all export sectors, raising the tax-free income limit to Tk5 lakh for individuals, making the tax system completely digital, 10% tax on dividends and 2% tax concession for industrial establishments.

At the meeting, the Bangladesh Paper Mills Association (BPMA) has proposed a 5% duty at the supply stage, and withdrawal of other duties including the duty on self-copy paper.

The Bangladesh Marine Fisheries Association has demanded reducing import duty to 20% and corporate tax to 5%.

The Bangladesh LPG Autogas Station and Conversion Workshop Owners Association has proposed withdrawal of VAT attached to the selling price of autogas at the consumer level. Besides, the organisation wants duty-free import of raw materials, parts and machinery required for the production of LPG tanks.

Bangladesh Association of Amusement Parks and Attractions (BAAPA) has proposed to reduce the income tax for the tourism sector and amusement parks from the existing 7.5% to 5%.

The Federation of Bangladesh Customs Clearing and Forwarding Agents' Association has proposed to rationalise tariff rates. They also demanded fixing a single duty rate for the goods which can be classified under multiple Harmonised System codes. 

Besides, they said the penalty rate for false declaration should be minimum Tk50,000 and the same procedure and duty rate should be implemented at all customs houses.

Apart from them, Kishoreganj Chamber of Commerce and Industry, Narsindi Chamber of Commerce and Industry participated in pre-budget discussions.