Govt plans to slash tax rate to boost earnings: planning minister

Planning Minister AHM Mustafa Kamal yesterday said the government is planning to cut the overall tax rate, particularly the corporate tax rate, with the view to boosting revenues.

The minister made the remarks when the board of directors of the Dhaka Chamber of Commerce & Industry led by its President Abul Kasem Khan called on him at his office, according to a statement from the chamber.

In another statement from the planning ministry, Kamal said Bangladesh would reach a stage in terms of cutting taxes that would be deemed impossible. His remark was in response to the DCCI's demand of cutting corporate tax rates. 

Recently, 1.5 trillion cubic feet of gas has been found in Bhola, which has taken the country's total gas reserve to 14.5 TCF.

“Bangladesh is a great place for investment and the facilities the country offers to businesses cannot be found elsewhere.”

Subsequently, Kamal urged the chamber to invite foreign investors to the country and help create a conducive environment for businesses.

“We will have to create such a business environment that no businessman feels the need to go to another country to do business,” he said, adding that the cost of doing business will come down substantially by October–November. 

Bangladesh is placed at the bottom in the World Bank's “Doing Business 2018” report, said the DCCI chief.

Private investment needs to be scaled up to 29 percent from the current rate of 23.10 percent.

Bangladesh needs to raise its infrastructure investment ratio to 5 percent of the gross domestic product, and the chamber estimates that the country will require $320 billion by 2030 to develop reliable, sustainable and affordable infrastructure.

The country currently spends only 2.87 percent of its GDP for infrastructure development in contrast to 10 percent in Vietnam, Khan said.

Subsequently, Khan proposed forming a high-powered authority styled “National Infrastructure Development and Monitoring Advisory Authority” to accelerate the implementation of mega infrastructure projects.

All fast-track projects need to be implemented within the projected time to eradicate traffic jam in Dhaka City and save Tk 20,000 crore that is lost to congestion every year, the chamber said.