Leaders of Metropolitan Chamber of Commerce and Industry (MCCI) on Tuesday urged the National Board of Revenue (NBR) to reduce the corporate tax imposed on non-banking financial institutions (NBFIs) and insurance companies.

The chamber said the corporate tax rate of 42.5% is very high in comparison to corporate tax in the neighboring countries. They urged NBR to set the corporate tax rate for NBFI’s and insurance companies at 40%.

A MCCI delegation team, led by its president Syed Nasim Manzur, made the request at a pre-budget meeting with NBR in its office. NBR chairman Nojibur Rahman presided over the meeting.

Addressing the meeting, business leaders complained that the Large Taxpayers Unit often freezes their bank accounts in primary stages.

‘Freezing bank accounts should be the absolute last resort. It can be done if the businesses continuously neglect the decisions of taxmen for collection of due tax,’ said Adeeb H Khan, chairman at MCCI tariff and taxation sub-committee.

MCCI executive committee member Nihad Kabir asked NBR to start discussion with taxpayers before they go to court for utilising revenue. The NBR should formulate a branch named Medium Taxpayers Unit (MTU) to facilitate small taxpayers, she suggested.

Continuation of Tk 100 crore grant urged for women entrepreneurs

Representatives from Bangladesh Women Chamber of Commerce and Industry (BWCCI) demanded that the government should continue Tk 100 crore grants in the coming budget for women entrepreneurship development.

BWCCI president Selima Ahmad, who led the delegation, also demanded that the VAT rate should be at 4% in all steps for female entrepreneurs.

The other demands from the association include raising tax free limit for women at Tk 3.5 lakh, facilitating free registration for women entrepreneurs in international trade fairs and allow them to carry products minimum of Tk 5 lakh, allocating 15% for them from Equity and Entrepreneurship Fund (EEF), allocating Tk 10 crore for them against the business losses due to political turmoil, and introduction of 24 hour hotline and help desk at all custom ports to help entrepreneurs in dealing with harassments related to trade issues.

Removal of minimum tax urged

Representatives from India-Bangladesh Chamber of Commerce and Industry (IBCCI) have requested the NBR to withdraw the provision for charging minimum tax on gross receipts.

They said that the 0.30% minimum tax imposed on gross receipts of every firm or company having gross receipts of more than Tk 50 lakh needs withdrawal as income tax should be based on income, not on revenue.

More than 100 writs have been filed at High Court and many rules and stay orders was given in such cases. The revision of this section needs consideration, they said.

A delegation, headed by IBCCI vice-president Shafqat Haider placed the demand.

The association leaders also said the allowed expenditure limit for overseas travelling, which is now restricted to 1% of the disclosed turnover needs withdrawal as the amount and extent of expenditure should be a business decision and to be decided by the organisation itself.

Meanwhile, the Youth Entrepreneurs Association of Bangladesh general secretary said that the youth entrepreneurs should enjoy package VAT and the interest rate on bank loans should be minimized at single digit as enjoyed by the female entrepreneurs.