The Dhaka Chamber of Commerce & Industry (DCCI) President Shams Mahmud put emphasis on increasing the tax-GDP ratio and ensuring an investment-friendly simplified revenue structure to reach the goal of becoming a developed nation.
Shams Mahmud said this while chairing a virtual workshop on “Finance Act 2020 and VAT & Supplementary Duty Act 2012” on November 14.
About 100 members from DCCI and different business entities joined the workshop. Md. Alamgir Hossain, member (Tax Policy) of NBR and Masud Sadik, member (VAT Policy) of NBR joined the workshop as special guests, said a DCCI press release.
The DCCI President said that this year the NBR had set a revenue collection target of Taka 3,30,000 crore which is 9.82 percent more than the revised budget of last fiscal, reports BSS.
“For that we need to widen the tax net and online tax and VAT return submission system as well as simplification of return submission and hassle-free service,” he added.
Shams also requested to exempt VAT on lease rent for the registered industries that are in operation in the economic zones. He also suggested reducing the rate of advance tax for the local SMEs who import raw materials.
The DCCI President informed that like the previous years, DCCI published its regular publication “DCCI Tax Guide 2020-21” this year.
He said due to Covid-19 situation, the world-wide economy has experienced a shock. Considering this pandemic, the budget of fiscal year 2020-2021 aimed at re-building the disrupted economy.
Md. Alamgir Hossain, Member (Tax Policy) of NBR said the government is trying to strike a balance between the target of GDP growth and the challenge of Covid-19 situation.
In comparison with other neighboring countries, he said Bangladesh’s tax rate is not too high, but it can be more rationalized.
Alamgir said, if the NBR feels that reduction of particular tax may increase business activities, then that will definitely be done.
He expressed his hope that the online VAT and tax return system will be completely implemented by the next year. In order to increase the tax net, the tax structure will be reformed soon, he informed.
The NBR member said there are some 1,76,000 business houses registered under the RJSC and out of those, around 70,000 to 75,000 are TIN holders. “But, only 36,000 from them submit their returns,” he added.
Masud Sadiq, Member (VAT Policy) of NBR said there is a need to simplify the VAT system to ensure ease of doing business. “It is true that for country’s development, increased revenue target is a reality, but at the same time, we need to strike a balance between the increased revenue target and rationalized tax regime, VAT structure.”
M. Shafiqul Alam, Convenor of DCCI’s Customs and VAT Standing Committee presented a paper on DCCI’s proposals on Budget for 2020-2021 fiscal year. He requested to ease VAT return submission process and refund of advance VAT system.
He also suggested for a comprehensive online VAT return submission system.
Snehasish Barua, tax consultant of DCCI and Partner, Snehasish Mahmud & Co. presented another paper. He demanded of the government for a simplified, easy, automated, sustainable and hassle-free tax and VAT return submission system.
DCCI Senior Vice President NKA Mobin made the concluding remarks.