The Dhaka Chamber of Commerce and Industry on Thursday crticised some proposals in the budget for next fiscal year, including increased tax at source on exportable goods as it would have serious negative impacts on export growth.
'A number of proposals included in the budget would hinder growth in investment, exports and employment generation,' DCCI president Asif Ibrahim said at a post-budget press conference at its office.
Asif Ibrahim demanded withdrawal of the proposal to increase tax at source from 0.4 per cent to 1.5 per cent on exportable goods as it would have serious negative impacts on export growth.
The DCCI president said it would be compatible if the tax-free income limit could have been fixed at Tk 2.25 lakh instead of the proposed Tk 1.80 lakh because inflation rate and price of essentials increased notably during the year.
Asif demanded withdrawal of imposition of 10 per cent surcharge on total paid tax for people having assets worth Tk 2 crore or more, increasing fee for commercial building registration, increasing tax at source on stock brokerage and 5 per cent tax on income from poultry farms.
He urged the government to keep the textile sector under tax holiday facility proposed for the next two years.
'Some thrust-sectors mentioned in the Industrial Policy were also not proposed to be brought under the tax holiday facilities. These sectors need tax holiday facilities,' said Asif.
The DCCI chief said the proposal to increase tax from 0.05 to 0.10 per cent on brokerage commission might create problems in the capital market because the investors would have to pay the tax ultimately.
Asif recommended that the government should allow undisclosed money to be invested in the capital market with a condition of keeping the invested money for at least two years.
But later, replying to a question, he said the undisclosed money can be invested in the manufacturing sector considering employment generation.
He recommended that the government should withdraw VAT imposed on internet service providers to make the initiative for digitalisation effective.
DCCI vice president Nasir Hossain and former presidents Benazir Ahmed and Khalid Hossain and other directors were present.
source:NewAge
