es for business registration, utility connection, tax payment and as well as ensuring rapid development of the special economic zones to ensure sufficient rooms to private investors. The business leaders also observed that good governance, justice and political stability are preconditions to increase private investment. Alleging that the existing lending rates are high and non-favorable to new investment, president of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Kazi Akram Uddin Ahmed said private investment remains sluggish though the private sector has been playing an impressive role for the country’s economic progress. Proposing to reduce the spread between the lending and deposit rates to 3 percentage point from existing more than 4 percentage, the FBCCI president said there is no alternative to reducing interest rate to increase private investment. According to Bangladesh bank data, banks weighted average lending rate was reduced to 11.93 percent at the end of March from 12.23 percent in February. On the other hand, the weighted average deposit rate of the banks was also reduced to 7.06 percent. “I believe the lending rate will gradually come down to single digit. At least, I hope fiscal measures will be taken to bring down lending rate to 10 percent to ensure better access to finance for investors who want to make fresh investment,” Kazi Akram said while placing a set of proposals on behalf of the FBCCI at the 36th consultative meeting of National Board of Revenue (NBR) at a city hotel.NBR chairman Nojibur Rahman chaired the discussion. While addressing the function, the NBR chairman said the government is taking all-out effort to place a people-friendly and welfare budget through widening the tax without increasing the tax burden. “The government is committed to turn the state as developed one within the year 2021. For holding up the flow of economic development, we must need money and due to the external factors, we have to concentrate more on the internal resources for our development”, he added. He mentioned that income tax and VAT are accountable for more than 83 percent of the national revenue. On the theme of ‘revenue for public welfare’, the NBR has so far conducted pre-budget talks with more than 500 trade bodies, chambers, association, economic think tanks, media representatives etc, mainly to make the upcoming budget a participatory, welfare and business and investment friendly”, the NBR Chairman added. Meanwhile, the FBCCI president told the meting that corporate tax is also high here compared to neighboring India and Sri Lanka. He also stressed the need for taking fiscal measures for a considerable curtail in corporate taxes so that the investors face less challenges to execute their fresh investment plans. In his course of speech, Finance Minister AMA Muhith said corporate tax will be rationalized by restructuring current slabs for publicly listed companies, non-listed companies and others business entities. The minister said the primary target of his government was to enlarge the size of the budget, because if the size of budget is not increased, it would be difficult for the government to provide services to the people. “So this year, we aim to prepare a budget of nearly Tk 3 lakh crore.” Muhith said out of the country’s 16 crore people, there are 18 lakh registered tax payers and only 11 lakh of them actually pay taxes, adding “the NBR has to take initiative to bring more people under the tax net.” The finance minister, however, didn’t disclose the amount of curtail. He informed that the government will bring a change in the tax regime from tobacco products in the next budget. An NBR official later clarified that currently taxes are being realized on tobacco in four slabs in forms of VAT and Supplementary Duty. In the new budget (for fiscal 2015-16), the slabs will be withdrawn and VAT will be charged on value of the tobacco products. In addition, supplementary duty will be charged on sales turnover. The NBR officials said a minimum sale value of a packet of 20-stick cigarette will be fixed by the government in the new budget. In a detail proposal book, the FBCCI demanded easing the VAT (Value Added Tax) and AIT (Advance Income Tax) payment procedures for making the tax paying process more convenient for the tax payers. Muhith said the government will enforce the new VAT act (2012) from July 2016.“We will start the implementation procedure (to enforce it from July 2016) from the next fiscal (2015-16) so that the taxpayers could easily understand the new VAT act,” Muhith told the business leaders. The apex trade body has demanded legal measures to restrict inspections or drive by the tax, audit officials and other lawful authorities to the daytime only to ensure safety of business people across the country. The FBCCI also demanded to stop checking of vehicles loaded with goods without specific complaints. “Raid or inspection or investigation may be allowed at a business entity during dawn to dusk associated by at least two locals,” FBCCI said in its proposal. “Only tax commissioners should be allowed to investigate or go for inspection to a business entity on specific complaints,” his proposal reads. The FBCCI also proposed to increase the tax-free annual income limit for individuals to Tk 2.75 lakh from existing Tk 2.20 lakh, for women the ceiling has been proposed at Tk 3.25 lakh from existing Tk 2.75 lakh, at Tk 4 lakh for handicapped people from existing Tk 3.50 lakh, and for the freedom fighters, the tax-free limit of individual income has been proposed to be fixed at Tk 4.50 lakh from existing Tk 4.0 lakh. The trade body also proposed to fix the tax rate at 10 percent for income of next Tk 4.25 lakh exceeding the ceiling of Tk 2.75 lakh, 15 percent on next Tk 5.0 lakh, 20 percent on income of next Tk 6.0 lakh, 25 percent on next Tk 42.0 lakh and 30 percent on any amount higher than that. For the city corporations, district headquarters and other areas, the tax rate currently is Tk 3,000, Tk 2,000 and Tk 1,000 respectively. The FBCCI proposed a flat rate of Tk 3,000 for all areas. The FBCCI also proposed to set the tax-free limit for the wealth tax, also known as wealth surcharge at Tk 2.0 crore. The leaders of the trade body said the government should initiate appropriate measures including deploying strong patrol teams and vigilance teams to check price spiral of commodities before and during holy month of Ramadan. The FBCCI said the government should not look for GSP facility only to boost export. “The government should also pay heed on arranging free trade agreement with developed countries to boost export,” said the business leaders.State Minister for Finance and Planning Abdul Mannan and leading business persons including Matlub Ahmed, Golam Dostogir Gazi and Alhaj Abdul Kalam spoke on the occasion, among others. FBCCI First Vice President Monwara Hakim Ali, Vice President Md. Helal Uddin, Directors various chambers and association leaders, high officials from the NBR were present on the occasion.
Wednesday, May 13, 2015
Businesses for single digit lending rate to spur investment:Daily Sun
es for business registration, utility connection, tax payment and as well as ensuring rapid development of the special economic zones to ensure sufficient rooms to private investors. The business leaders also observed that good governance, justice and political stability are preconditions to increase private investment. Alleging that the existing lending rates are high and non-favorable to new investment, president of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Kazi Akram Uddin Ahmed said private investment remains sluggish though the private sector has been playing an impressive role for the country’s economic progress. Proposing to reduce the spread between the lending and deposit rates to 3 percentage point from existing more than 4 percentage, the FBCCI president said there is no alternative to reducing interest rate to increase private investment. According to Bangladesh bank data, banks weighted average lending rate was reduced to 11.93 percent at the end of March from 12.23 percent in February. On the other hand, the weighted average deposit rate of the banks was also reduced to 7.06 percent. “I believe the lending rate will gradually come down to single digit. At least, I hope fiscal measures will be taken to bring down lending rate to 10 percent to ensure better access to finance for investors who want to make fresh investment,” Kazi Akram said while placing a set of proposals on behalf of the FBCCI at the 36th consultative meeting of National Board of Revenue (NBR) at a city hotel.NBR chairman Nojibur Rahman chaired the discussion. While addressing the function, the NBR chairman said the government is taking all-out effort to place a people-friendly and welfare budget through widening the tax without increasing the tax burden. “The government is committed to turn the state as developed one within the year 2021. For holding up the flow of economic development, we must need money and due to the external factors, we have to concentrate more on the internal resources for our development”, he added. He mentioned that income tax and VAT are accountable for more than 83 percent of the national revenue. On the theme of ‘revenue for public welfare’, the NBR has so far conducted pre-budget talks with more than 500 trade bodies, chambers, association, economic think tanks, media representatives etc, mainly to make the upcoming budget a participatory, welfare and business and investment friendly”, the NBR Chairman added. Meanwhile, the FBCCI president told the meting that corporate tax is also high here compared to neighboring India and Sri Lanka. He also stressed the need for taking fiscal measures for a considerable curtail in corporate taxes so that the investors face less challenges to execute their fresh investment plans. In his course of speech, Finance Minister AMA Muhith said corporate tax will be rationalized by restructuring current slabs for publicly listed companies, non-listed companies and others business entities. The minister said the primary target of his government was to enlarge the size of the budget, because if the size of budget is not increased, it would be difficult for the government to provide services to the people. “So this year, we aim to prepare a budget of nearly Tk 3 lakh crore.” Muhith said out of the country’s 16 crore people, there are 18 lakh registered tax payers and only 11 lakh of them actually pay taxes, adding “the NBR has to take initiative to bring more people under the tax net.” The finance minister, however, didn’t disclose the amount of curtail. He informed that the government will bring a change in the tax regime from tobacco products in the next budget. An NBR official later clarified that currently taxes are being realized on tobacco in four slabs in forms of VAT and Supplementary Duty. In the new budget (for fiscal 2015-16), the slabs will be withdrawn and VAT will be charged on value of the tobacco products. In addition, supplementary duty will be charged on sales turnover. The NBR officials said a minimum sale value of a packet of 20-stick cigarette will be fixed by the government in the new budget. In a detail proposal book, the FBCCI demanded easing the VAT (Value Added Tax) and AIT (Advance Income Tax) payment procedures for making the tax paying process more convenient for the tax payers. Muhith said the government will enforce the new VAT act (2012) from July 2016.“We will start the implementation procedure (to enforce it from July 2016) from the next fiscal (2015-16) so that the taxpayers could easily understand the new VAT act,” Muhith told the business leaders. The apex trade body has demanded legal measures to restrict inspections or drive by the tax, audit officials and other lawful authorities to the daytime only to ensure safety of business people across the country. The FBCCI also demanded to stop checking of vehicles loaded with goods without specific complaints. “Raid or inspection or investigation may be allowed at a business entity during dawn to dusk associated by at least two locals,” FBCCI said in its proposal. “Only tax commissioners should be allowed to investigate or go for inspection to a business entity on specific complaints,” his proposal reads. The FBCCI also proposed to increase the tax-free annual income limit for individuals to Tk 2.75 lakh from existing Tk 2.20 lakh, for women the ceiling has been proposed at Tk 3.25 lakh from existing Tk 2.75 lakh, at Tk 4 lakh for handicapped people from existing Tk 3.50 lakh, and for the freedom fighters, the tax-free limit of individual income has been proposed to be fixed at Tk 4.50 lakh from existing Tk 4.0 lakh. The trade body also proposed to fix the tax rate at 10 percent for income of next Tk 4.25 lakh exceeding the ceiling of Tk 2.75 lakh, 15 percent on next Tk 5.0 lakh, 20 percent on income of next Tk 6.0 lakh, 25 percent on next Tk 42.0 lakh and 30 percent on any amount higher than that. For the city corporations, district headquarters and other areas, the tax rate currently is Tk 3,000, Tk 2,000 and Tk 1,000 respectively. The FBCCI proposed a flat rate of Tk 3,000 for all areas. The FBCCI also proposed to set the tax-free limit for the wealth tax, also known as wealth surcharge at Tk 2.0 crore. The leaders of the trade body said the government should initiate appropriate measures including deploying strong patrol teams and vigilance teams to check price spiral of commodities before and during holy month of Ramadan. The FBCCI said the government should not look for GSP facility only to boost export. “The government should also pay heed on arranging free trade agreement with developed countries to boost export,” said the business leaders.State Minister for Finance and Planning Abdul Mannan and leading business persons including Matlub Ahmed, Golam Dostogir Gazi and Alhaj Abdul Kalam spoke on the occasion, among others. FBCCI First Vice President Monwara Hakim Ali, Vice President Md. Helal Uddin, Directors various chambers and association leaders, high officials from the NBR were present on the occasion.
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