FBCCI for mandatory TIN submission for taking govt services

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is expected to propose making it compulsory for people to submit their tax identification number (TIN) and tax payment documents for taking various government services.

The apex trade body will make this recommendation to the government in a bid to expand the country's tax base and bring everyone under the tax net.

The FBCCI may submit its proposals at the consultative committee meeting of the National Board of Revenue (NBR) today. The trade body will also propose allowing entrepreneurs to avail tax registration instead of a trade licence from the local government.

It may also recommend taking steps to raise contribution of the direct tax ratio in tax revenue.

To reduce business costs, time and hassles, the NBR should issue clarifications on the classification of Harmonised System (HS) Codes, a standardised numerical method of classifying traded products, and make its policies easy.

For the same reason, the FBCCI would recommend rejecting source and advance tax for exporters as it ultimately returns to the industries.

The trade body will also suggest abolishing income tax on turnover or sales, reasoning that income tax was imposable only on a taxable entity.

Besides, it will recommend establishing Large Taxpayer Units (LTU) in every large tax zone, and keeping a system in place so that enterprises would automatically be included in the LTU if their turnover crosses a certain limit.

The products most used by low income people, namely daily commodities, transportation, essential goods, waste management, recycling, and so on, should be free of value added tax and supplementary duty, the FBCCI said.