FBCCI wants 1% tariff, unconditional importation of capital machinery
The Bangladesh Federation of Chambers of Commerce and Industry (FBCCI) has called on the government to allow unconditional importation of machinery, equipment and spare parts upon payment of an import duty of only 1% for the next fiscal year 2021-2022.
In a letter to the National Board of Revenue (NBR) today, the advanced trade urged the tax administration to set import duties on basic raw materials and intermediate raw materials entirely based on imports and the three-slab inputs – 1%, 3% and 5% – to increase the industrialization of the country.
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He also wanted the BNR to remove the various Withholding Tax (TDS) rates for supply and local letters of credit and proposed to set the TDS rate at 2 percent for simplicity.
In order to encourage banks to finance small and medium-sized enterprises, the trade body suggested reducing the corporate tax for banks, insurance companies and non-bank financial institutions to 35%, from 37.5% Currently, a suggestion came after Finance Minister AHM Mustafa Kamal tabled in parliament on June 3 the proposal to reduce corporate tax by 2.5 percentage points for listed and unlisted companies.
In its proposal, the FBCCI also urged the tax administration to remove the advance tax (AT), a kind of value added tax (VAT), on imports in order to reduce the pressure on manufacturers’ working capital.
When contacted, the president of the FBCCI, Md Jashim Uddin, said he had prepared the recommendations based on comments from various chambers and associations.