Lift VAT on rents of commercial buildings
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) yesterday urged the tax administrator to lift value-added tax on rents of houses that are used for commercial purposes.
The apex trade body said businesspeople now pay both holding tax and VAT for using commercial buildings, which is unrealistic.
The FBCCI also urged the National Board of Revenue to lift VAT on some small industries.
The FBCCI demanded strengthening VAT collection from small shops at the district level, as many shop owners at this level evade taxes, an official said, asking not to be named.
The government's revenue will increase manifold if the officials of the NBR can properly collect VAT from small enterprises in districts, he said after a daylong meeting with the NBR.
The FBCCI has been holding talks with the revenue board over the last two days to finalise provisions on customs duty, VAT and other taxes for the national budget for the next fiscal year.
The apex trade body also demanded withdrawal of supplementary duties on local industries such as soap and paint manufacturers to help them flourish.
“We have also demanded rationalisation of VAT on small and medium enterprises as the sector is growing fast,” said Manzur Ahmed, an adviser to the FBCCI.
Sometimes, the SMEs have to pay higher taxes, which is an obstacle to their growth, he said. However, the FBCCI will discuss income tax with the tax administrator today, he said.
The apex trade body and the revenue board will jointly hold a consultative meeting on May 17 to seek opinions and recommendations from trade bodies, businesspeople, chambers, stakeholders and experts.
Finance Minister AMA Muhith is scheduled to propose the next budget in parliament on June 7.