Dhaka Chamber of Commerce and Industry (DCCI)
today urged the National Board of Revenue (NBR) to simplify tax structure for
ensuring Cottage, Micro, Small and Medium Enterprise (CMSME) friendly
environment.
The trade body made the call at a meeting with NBR Chairman Md Abdur Rahman
Khan at NBR headquarters in the city, said a press release.
During the meeting, Abdur Rahman Khan said only 5 percent of the country’s
total population pay tax, whereas in India the rate is 23 percent and in
existing reality NBR has no option to expand the tax net.
“The maximum revenue comes from the existing tax payers and a large section
of the society is out of the tax net, thereby increasing the pressure on the
existing taxpayers. If the non-tax payers remain out of the net year after
year, the existing taxpayers will be discouraged from paying tax, so the NBR
will work on priority basis to expand the tax net in the next six months,” he
continued.
Due to multiple tax layers at various stages, effective tax rate e
specially
of corporate tax sometimes increases but the issue will be considered
seriously by the NBR, he added.
Without reducing tax collection target, the revenue management of the country
will be streamlined along with rationalizing the tax rate, he said.
The NBR chairman called upon the business community to maintain the
transaction process through cashless recordable system and banking channels
which will help prevent TAX or VAT evasion.
Later, he urged the DCCI to conduct research studies solely or jointly with
NBR to identify various problems in the revenue sector and submit the
probable findings that NBR would try to solve at the earliest possible time.
During the meeting, DCCI President Ashraf Ahmed said complicated tax
management system hinders the businesses of CMSMEs, therefore he suggests
easing and formulating a CMSME friendly tax structure.
He said, as per the existing law, if the business losses cannot be adjusted
with the income of other sources of the venture, the burden of add
itional tax
is being imposed on the businessmen.
For this purpose, he recommended, the reinstatement of similar provision of
Section 37 of the Income Tax Ordinance 1984.
The DCCI president also requested for the income tax system to be brought
under the automated system with the aim of simplifying tax payment and all
tax related matters.
“If the tax at source is not possible to be adjusted with the installment of
advance income tax at this moment, the provision may be issued to provide an
opportunity to carry forward the tax at source deducted from the payment of
goods and services provided by the CMSME to the next tax year along with the
income tax,” he added.
Currently, he said, there is a provision of fine up to 400 percent if the HS
code is incorrect even if the product description is correct.
“For this businesses often face harassment. If the product’s description or
HS code is correct there should have been an opportunity to amend and
withdraw the declaration of goods filed at the assess
ment stage by amending
Section 86 (1) of the Customs Act 2023,” he added.
DCCI Senior Vice-President Malik Talha Ismail Bari and Vice President Md.
Junaed Ibna Ali, Members of NBR Md. Masud Sadiq, AKM Badiul Alam and G M
Abdul Kalam Kaikobad were also present on the occasion.
Source: Bangladesh Sangbad Sangstha