Dhaka Chamber for Corporate Tax Rate Cuts


The Dhaka Chamber of Commerce and Industry (DCCI) yesterday urged the Revenue Authority to cut corporate tax for listed and unlisted companies by 2.5 percentage points in the next fiscal year (FY) from 2022-23.

Currently, the tax rate for listed companies is 22.5% and that for unlisted companies is 30%.

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“If the government reduces the corporate tax rate, it will stimulate local and foreign investment,” said DCCI Chairman Rizwan Rahman.

The chamber made a total of 40 recommendations for the upcoming national budget for the financial year 2022-23 during a meeting with National Revenue Council Chairman Abu Hena Md Rahmatul Muneem at the latter’s office in the capital.

Rizwan also proposed to drastically reduce corporate dividend income tax from 20% to 10%.

He said it would encourage local investors to opt for reinvestments and make stock markets more efficient.

Rizwan also recommended that the annual turnover tax exemption for businesses be increased to turnovers of up to Tk 4 crore from the existing Tk 3 crore.

He also called for imposing a turnover tax based on value added to products or profit margins.

The DCCI chief has proposed to increase the tax-free income limit for individual taxpayers from Tk 3 lakh to Tk 4 lakh taking into account rising inflation and cost of living.

He said about 27 lakh taxpayers regularly submit returns on average every year, which was very nominal for an economy like Bangladesh.

According to the BNR, only 37% of the 62.77 lakh registered taxpayers filed tax returns till January 2 this year, the last day for filing personal income and asset declarations.

BCI PROPOSALS

Meanwhile, in its budget proposal, the Bangladesh Chamber of Industries (BCI) called for formulating funding policies from the special fund set up by the government to encourage young entrepreneurs.

In the absence of proper policies, the benefit of the fund could not be realized, said BCI Chairman Anwar-ul Alam Chowdhury (Parvez).

He suggested a complete digitization of tax systems to modernize tax administration and encourage citizens to comply with the rules.

The BCI has proposed a tax refund for companies that will employ people with disabilities and transgender people.

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