Reiterates demand for introducing multiple VAT rates

The country's apex trade body Saturday demanded of the government not to levy any excise duty on bank-account balance.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) also stuck to its old demand---introduction of multiple VAT (value added tax) rates instead one single rate of 15 per cent from the first day of next financial year (FY).

The chamber put forward the demands while requesting the government to reconsider a raft of proposals laid down in the proposed budget for the fiscal year 2017-18. .

Finance Minister AMA Muhith placed a Tk 4.27 trillion national budget for the fiscal year 2017-18, up-raised 26.17 per cent from the revised budget for the outgoing fiscal year.

In the budget he proposed to increase excise duty on bank-account balance. Those who have a bank-account balance worth over Tk 0.1 million have to pay Tk 800 instead of Tk 500 a year for maintaining that bank account.

The FBCCI said if the increased excise proposed in the new budget was charged, then the depositors would get a negative return on the money they keep with the banks.  

It also suggested that the government build infrastructure for massive industrialisation for achieving the targeted growth on a higher scale. The government has proposed the GDP growth target at 7.4 per cent for the fiscal year 2017-18, up from the current year's 7.24 per cent.    

"We have been examining the budget elaborately. We are taking suggestions from chambers and associations. We will put forward our suggestions to the government for reconsidering our proposals that were not reflected in the budget," president of the FBCCI Shafiul Islam Mohiuddin said at a post-budget joint press briefing at the apex trade body's office.

"We called upon the government to form a joint working committee comprising the National Board of Revenue and the FBCCI for implementing the existing revenue policy and sorting out problems related to revenue earnings," he told the journalists.

The apex trade body called upon the government also to reset the corporate-tax rate at 25 per cent for attracting local and foreign investments, raise to Tk 325,000 the individual income-tax ceiling from the proposed Tk 250,000, withdraw advance income tax on imported raw materials such as capital machinery, reduce tax on export proceeds for boosting country's export. Its demands also include waiver of e-commerce corporate tax for flourishing young and woman entrepreneurs, refraining from raising the prices of gas and power, withdrawal of supplementary duty on imported raw materials of leaf spring and special allocation to the tourism sector.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president AKM Salim Osman, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Siddiqur Rahman, Chittagong Chamber of Commerce and Industry (CCCI) president Mahbubul Alam and Bangladesh Chamber of Industries (BCI) president Mostofa Azad Chowdhury Babu were among others present.