Chairman of National Board of Revenue (NBR) Md Mosharraf Hossain Bhuiyan has sought cooperation from the business community for collection of tax from potential areas and individuals still remaining out of tax net.
"This time the budget will be the largest one because it the last one of the government's current tenure. We've to increase revenue earnings to meet the development and non-development expenditures. So, we need your support to realize tax from individuals and the areas still remaining out of tax net," he told the leaders of Foreign Investors' Chamber of Commerce and Industry (FICCI) during pre-budget talks here yesterday.
He said there is no alternative to increase revenue earnings but the NBR does not want to create pressure on anyone or establishment to realize tax, he said, adding that the NBR needs your suggestions as it wants to realize tax in a planned way.
FICCI president Shehzad Munim said the corporate rate in Bangladesh is high compared to that of neighbouring countries and proposed to cut corporate tax at the rate of 5 percent in all areas for industrialization and foreign investment.
He also proposed to make loan provisioning tax free. Munim said implementation of the VAT law 2012 has been delayed for two years but some part of this law such as progressive tax rate can be implemented right now.
About tax on loan provisioning, the NBR chairman said that it is not possible to do because there is no scope to waive this tax.
On progressive tax rate, he said it is a good idea and the NBR will consider it.
Hossain said there is allegation against multinational companies that they deduct tax from people but do not deposit the money at public exchequer. We do not hear such allegation any more . . . people's money must be deposited to public exchequer," he added.