Finance Minister cites constraints in addressing demands for tax cuts and VAT exemptions in upcoming budget.
Business leaders in Bangladesh are urging the government to implement tax reductions and exemptions in the forthcoming national budget, pointing to ongoing economic challenges. These demands were presented during a meeting in Dhaka on Wednesday, attended by Finance Minister Amir Khasru Mahmud Chowdhury. [source]
The business community is advocating for reductions in corporate tax, turnover tax, and withholding tax, along with VAT exemptions at the production stage for certain goods. They also propose a decrease in flat registration fees. [source]
Finance Minister Chowdhury acknowledged these demands but indicated that the government might not be able to accommodate them in the upcoming budget. He stressed the need to eliminate existing business obstacles to foster economic growth. [source]
The meeting was part of the 46th session of the National Board of Revenue (NBR) Advisory Committee, organized by the NBR and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). [source]
FBCCI Administrator Md Abdur Rahim Khan proposed increasing the tax-free income threshold for individuals and reducing the corporate tax rate for listed companies. He argued that aligning tax rates with those of competing countries is essential for attracting foreign investment. [source]
The FBCCI also suggested reducing turnover tax and withholding tax on export-oriented sectors and lowering the VAT rate on local goods supply to support small and medium enterprises. [source]
Obaidur Rahman, president of the Bangladesh Aluminium Manufacturers Association, highlighted the struggles of small factories due to rising raw material costs and increased gas and electricity prices. He called for reinstating VAT exemptions at the production stage. [source]
Imran Hasan, secretary-general of the Bangladesh Restaurant Owners Association, criticized the VAT system, stating it burdens small entrepreneurs who must hire accountants to comply. [source]
It may sound disappointing, but even if we wish, we may not be able to provide such benefits in the upcoming budget. — Finance Minister Amir Khasru Mahmud Chowdhury
Sources
- https://en.prothomalo.com/business/local/maj2miv8pa — Details on business leaders' demands and Finance Minister's response