Withdraw circular tax at on source local L/Cs: CCCI

Withdraw circular tax at on source local L/Cs: CCCI

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The Chittagong Chamber of Commerce & Industry president Mahbubul Alam on Wednesday urged Finance Minister AMA Muhith to withdraw the NBR circular on the deduction of tax at source with respect to settlement of local L/C in the greater interests of trade and survival of local enterprises.   The Chittagong Chamber of Commerce and Industry (CCCI) chief made the appeal through a letter sent to the minister.   The CCCI president mentioned that businessmen alongside import procure raw materials from local market to benefit the local enterprises.   Besides, the wholesale business is largely dependent on local L/C. “But the imposition of tax at source by 5 percent rate on locally procured raw materials will adversely affect the price hike, casting a far reaching negative impact on the economy.”   He said one will have to pay Tk 25 lakh as tax if a local L/C is worth Tk 5 crore which will ultimately be borne by the consumers.   Mahbubul recollected that this sort of discriminating SRO was promulgated in the early 2012 which was withdrawn at the strong protest of CCCI.   The recent circular of National Board of Revenue directed the tax payers of Chittagong and Cox’s Bazar civil district to submit the aforesaid tax at tax zone-2 Chittagong, while others of the whole country to do so with LTU, Dhaka which made the chamber president confused about the fair attitude of NBR to the businesses of this region, said a release.   Under such circumstances, the CCCI boss urged the finance minister and authorities concerned to immediately withdraw the controversial SRO in order to ensure unobstructed flourish of trade and business as well as to end the plights of millions of low income people. – UNB

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