FBCCI seeks tax cuts on food to tame inflation, aid exports
Amid inflation hovering around a double-digit level for around a year, the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) has proposed exempting all agro-based essential commodities from source tax.
The country’s apex chamber called for the withdrawal of the tax, arguing the 2.0 per cent rate on the supply of rice, wheat, potato, onion, garlic, gram, chickpeas, lentils, turmeric, chilli, maize, flour, salt, edible oil, sugar and all types of fruits has led to an increase in essential commodity prices.
In its recent proposal to the finance ministry for the upcoming national budget for FY 2024-25, the trade body also sought a cut in source tax on export proceeds and their cash incentives, a review of the minimum tax provision and the imposition of a regulatory duty to control imports of certain items.
In its recent proposal to the finance ministry for the upcoming national budget for FY 2024-25, the trade body also sought a cut in source tax on export proceeds and their cash incentives, a review of the minimum tax provision and the imposition of a regulatory duty to control imports of certain items.
To resolve the persistent foreign exchange crisis, FBCCI suggested that the Bangladesh Bank take prudent steps through discussions with market players or stakeholders.
The FBCCI will place the proposals for discussion with stakeholders on April 4 at the consultative committee meeting of the National Board of Revenue (NBR) and FBCCI.
The trade body proposed a reduction of source tax for export proceeds to 0.5 per cent from the existing 1.0 per cent for the next five years.
The chamber also recommended macro-economic reforms, including forming a banking commission that prioritises professionals in the banks’ governing body and taking immediate steps to reform the tenure of bank directors.
To resolve complexities in releasing import goods from ports, the chambers demanded accepting the lowest value of the last three months as defined by the World Trade Organization (WTO) and withdrawing tariff value and minimum value at the time of customs assessment of goods.
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