Finance Minister AMA Muhith says that the tax management system will go through a major change in the upcoming fiscal year.
“The fear over paying taxes, which was the case 10 years ago, is not now there anymore. The number of individuals with TIN (tax identification number) has crossed 3 million over a year ago. Now we are considering a major change over these TIN-holders,” he said on Thursday.
Addressing a meeting of consultative committee for the National Board of Revenue (NBR), he said they have started the process of formulating the budget proposal a bit earlier this year.
“Usually it starts in February-March, but this time it kicked-off in January. Because, I want to some new measures to be initiated in election year,” said Muhith, who is set to present his 12th budget.
“I also aim perfection for the previous initiatives… to make them better,” he added.
Underlining shabby conditions of roads and highways across the country as a major concern, Muhith said he was considering meeting the concerned authorities on it.
“Since most roads are of the same width, businesses are finding hard to transport containers, which also is the major reason for the shabby condition,” he said before adding they will are going for international standard highways as well as for a system to regulate plying of heavy vehicles on the roads.
Announcing to include e-commerce in IT sector, Muhith assured of incentive for direct exports.
He also hinted at lifting value added tax (VAT) on bakery and agricultural products, but made it clear that the poultry sector is not getting incentives.
Earlier in the meeting, the top trade body’s president Shafiul Islam Mahiuddin called for uniform corporate tax of 25 to 35 percent.
He also proposed a tax-free income ceiling of Tk 300,000.
Mahiuddin, who heads the Federation of Chambers of Commerce and Industries (FBCCI), also urged the government to cut the lending rate, uninterrupted gas and power supply for industries for an investment-friendly climate.
The meeting also heard call for cutting duty on imports of raw materials.
Bangladesh is stuck with a tax-GDP ratio of 10 per cent, NBR Chairman Musharraf Hossain said while addressing the meeting.
According to him, expanding the tax net is the only way to hike revenue.