FBCCI wants 1% tariff, unconditional import of capital machinery
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has demanded the government to allow the unconditional import of capital machinery and spare parts on payment of only 1 per cent import tariff for the next fiscal year 2021-22.
In a letter to the National Board of Revenue (NBR) today, the apex trade urged the revenue authority to fix import duty on basic raw materials and fully import-based intermediate raw materials and input at three slabs – 1 per cent, 3 per cent and 5 per cent - to increase industrialisation in the country.
It also wanted the NBR to eliminate the various rate of Tax Deducted at Source (TDS) for supply and local letters of credit and proposed fixing the TDS rate at 2 per cent for simplification.
In order to encourage banks to finance small and medium enterprises, the trade body suggested reduction of corporate tax for banks, insurance and non-bank financial institution to 35 per cent from the present 37.5 per cent—a suggestion came after Finance Minister AHM Mustafa Kamal tabled the proposal to reduce corporate tax by 2.5 percentage points for listed and non-listed companies in the stock exchanges on June 3 in the parliament.
In its proposal, the FBCCI also urged the revenue administration for withdrawal of Advance Tax (AT), a type of Value Added Tax (VAT), on import to reduce pressure on the working capital of manufacturers.
Contacted, FBCCI President Md Jashim Uddin said they prepared the recommendations based on feedback from various chambers and associations.