Simplifying tax collection is our priority: NBR chief
National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem has said that they will highlight the issue of simplifying tax collection in the next budget.
"We will be phasing through the LDC graduation next. Therefore, we will need to prioritise a number of issues in formulating the next budget and simplifying tax collection is one of them," he said during a pre-budget meeting with the Bangladesh Shipping Agents Association, Dhaka Taxes Lawyers Association and Dhaka Taxes Bar Association.
"One of the major challenges will be attracting Foreign direct investment (FDI), for which it is important to make the processes easier. We are lagging in this area," he said at the meeting, held at the NBR building in the capital's Agargaon.
Keep updated, follow The Business Standard's Google news channel
The NBR Chairman also said that they are taking steps as part of their target to expand the tax net.
"Simplification of return form, submission of online tax will be given importance," he added.
Addressing tax lawyers, "All payments of tax, VAT, customs duty along with returns should be made through e-Payment. This is one of the IMF conditions [against their loan]."
Bangladesh Shipping Agents Association Vice Chairman Md. Reaz Uddin Khan said that the rate of tax payable on shipping agency commission should be reduced from 8% to 5%.
Reduce corporate tax rate: AMTOB to NBR
The Association of Mobile Telecom Operators of Bangladesh (AMTOB), British American Tobacco Bangladesh, United Dhaka Tobacco Company Limited and Bangladesh Bidi Shilpa Malik Samity also attended the pre-budget meetings on Sunday.
The Association of Mobile Telecom Operators of Bangladesh (AMTOB), the national trade organisation representing all mobile telecom operators in Bangladesh, has proposed the reduction of corporate tax rate on mobile phone operator companies in the FY2023-2024 budget.
"We propose to remove or reduce the minimum tax. Mobile operators are required to pay a minimum tax of 2% of their annual gross revenue which is in conflict with the Income Tax Act. Paying minimum tax despite loss in business means paying tax out of capital which is a hindrance to business expansion," AMTOB Secretary General Brig Gen (retd) SM Farhad said.
AMTOB also proposed to withdraw the minimum turnover tax and abolish the tax of Tk200 imposed on SIM cards.
"There is no alternative to removing or reducing the minimum tax in favour of sustaining the industry and building the Digital Bangladesh as announced by the government," he added.
During the meeting, SM Farhad presented a 16-point proposal on telecom-related income tax, value-added tax, import duty, and supplementary duty.
"The high rate of corporate tax should be reduced. The general corporate tax rate in the country is 27.5% for unlisted companies and 20% to 22.5% for listed companies. However, despite being an essential service, Bangladesh's mobile sector has to pay a high rate of corporate tax. The tax rate is 40% for listed mobile operators and 45% for unlisted companies," he added.
