The parliamentary committee on the finance ministry called for extension of tax holiday till 2015, revision of the ceiling for income tax, effective management of the exchange rate, and increase of tax rebate for companies discharging corporate social responsibilities.
The committee, in its 37th meeting, reviewed the proposed budget and observed that it required further discussion and debate before the introduction of wealth tax, and asked the ministry to revise it.
The committee's chairman, AHM Mustafa Kamal, at a press briefing after the meeting said that their recommendations were ignored in the proposed budget for next fiscal year.
Kamal claimed the country's economy had never been so healthy in the last 40 years.
He said that the Bangladesh Bank was suffering from shortage of foreign exchange as pressure mounts for increased infrastructural works, especially setting up of power plants. He said that the committee had proposed staggered payment of foreign exchange to reduce the pressure.
He also called for introduction of efficient management to deal with the exchange rate. He observed that the gradual devaluation of the taka against the dollar has had a negative impact on the price situation.
Kamal said there is tax holiday till 2013 and the committee had proposed its extension to 2015, and had also called for enlargement of the area covered by the tax holiday to include promising businesses like tourism and other industries.
'As in the developed world, many private sector companies have come up with programmes that will discharge their corporate social responsibilities. But they have to pay tax on their CSR activities, which should not be done. The tax rebate for CSR activities should be increased,' he said.
Kamal said that at present 22 sectors have begun CSR activities, but more sectors should start doing so.
He also opposed the tax coverage of small farms. 'The fishing farms in homesteads should not be under the tax net. The large commercial farms can be taxed. If it becomes essential, a flat rate can be imposed,' he said.
Source : New Age
