MCCI calls for cutting land registration fees

The Metropolitan Chamber of Commerce and Industry (MCCI) yesterday urged the government for reducing land registration fees, stating that the current land registration system promotes scopes for the generation of illegal money. 

The government-fixed land price rates are much lower than what actually prevailed on the ground, said the leading chamber.

As a result, when a seller transfers land, the prices illegal shown according to the lower government rates and not at what was actually paid. This attempt at avoiding paying higher registration fees turns illegal a portion of the money earned by the seller.

"If the registration fees are reduced through consultation with stakeholders, there will be no shortage of revenue," said MCCI President Nihad Kabir.

"Economy will have legally earned incomes and revenue management will be transparent," she said placing proposals for tax measures for fiscal 2021-22 at the National Board of Revenue (NBR).

NBR Chairman Abu Hena Md Rahmatul Muneem chaired the event.

In its recommendations, the MCCI, members of which account for nearly 40 per cent of the state's total tax collection, said the national budget for the next fiscal was very important.

The government's support for businesses is required for recovery from the Covid-19 induced uncertainty, according to a press release.

The next budget is also important from the perspective of Bangladesh making the United Nations status graduation to a developing country from least developed one by 2026.

"We have always been emphasising on making budget management dynamic. The MCCI believes that businesses will pay spontaneously if budget management is transparent and dynamic," said Kabir.

The MCCI lauded the government for reducing tax rates for publicly non-listed companies to 32.5 per cent from 35 per cent.

"However, the effective tax rates are much higher," said Kabir, adding that taxes go up to 50-60 per cent in some cases when import duty on intermediate goods and finished products are taken into account.

"This is affecting business seriously and discouraging foreign investment," she said.

The trade body also demanded the revenue authority reinstate an appeal procedure for settling value added tax (VAT) related disputes between companies and field offices of the revenue authority.

It said introduction of a system of revision for VAT to resolve disputes was not yielding appropriate results.

The MCCI also demanded that the NBR reconsider the incentives given to the taxmen for increasing the collection of taxes.

It said the law provides for incentive for those taxmen who can collect higher amounts of taxes. As a result of this, an uneven competition is seen among official for which businesses suffer, said the MCCI.

"So we appeal for reconsideration of the system," it said.