Dhaka: Dhaka Chamber of Commerce and Industry (DCCI) on Sunday urged the National Board of Revenue (NBR) to widen the tax net to collect more revenues in the upcoming fiscal year (2016-17).

‘Although the earning of nearly three crore people, out of the country’s total population, exceed the income-tax limit, only 11 lakh taxpayers pay tax regularly,’ DCCI president Hossain Khaled told a meeting with the NBR chairman at its conference room.

He said the DCCI strongly proposed widening the tax net along with rationale increase in the tax rate to achieve the revenue target set for the next fiscal.

During the meeting, Khaled placed 39 specific proposals to the NBR ahead of the next national budget.

He proposed raising the ceiling of tax-free income to Tk 3.5 lakh from the existing Tk 2.50 lakh in the next budget considering the growing living cost and inflation.

The DCCI president also proposed raising the tax exemption threshold for women and senior citizens, aged over 65 years, to Tk 4 lakh from the existing Tk 3 lakh. On the other hand, the trade body proposed raising lthe tax exemption threshold for the physically-challenged people to Tk 4.25 lakh from Tk 3.75 lakh.

The NBR has also been asked to fix minimum income tax at Tk 3,000, Tk 2,000 and Tk 1,000 based on areas.

The trade body suggested forming a special task force under the Tariff Commission involving representatives from public and private sectors to ensure the interests of both the importers of products and local producers.

It also suggested continuation of tax rebate in equipment import for developing energy and power sector in the next fiscal year.

The DCCI proposals also include reducing corporate tax rate for merchant bank to 35 percent from the existing 37.5 percent, reducing source tax on general purchase and sales to 2.5 percent from five percent, easing Duty Draw Back method in exporting jute products, recognising automobile and automotive industry as import substitute industry, and keeping port charges, demurrage and penalties in tolerable level in export and import of goods.

Assuring that the NBR will consider the proposals of the trade body, its chairman Md Nojibur Rahman urged businesspeople to submit the money of VAT that they collected from subscribers during the Pahela Baishakh festival to the NBR soon.