Business leaders demand tax system reforms

Tax

Jehangir Hussain

Business leaders on Wednesday demanded  simplification of taxation system and tax reforms to facilitate private sector growth so that it can compete in the international market.

Though Bangladesh’s economy is stable, there is no scope to be insular in the context of global geo-economic challenges, said speakers at a live pre-budget (FY2023-24) discussion hosted by Dhaka Chamber of Commerce and Industry (DCCI) in association with Daily Samakal and Channel 24 at the BICC.

Salman F Rahman, Private Sector Industry and Investment Adviser to the Prime Minister was present as the chief guest.

State Minister for Planning Dr Shamsul Alam and Shafiul Islam Mohiuddin, MP, were present as special guests.

Md Jashim Uddin, President, FBCCI and A K Azad, Former President, FBCCI were also present as guests of honour.  

DCCI President Barrister Sameer Sattar moderated the live telecast event.

He said only 30 lakh people submit their tax returns every year when the number should be at least one to two crore.

He requested the government to reduce corporate tax by at least 2.5 per cent for non-listed companies and enhance the tax free income limit for the individual from three lakh   to five lakh considering inflation and cost of living.

Salman F Rahman said “Russia-Ukraine war, global energy price hike, interest rate hike by US Fed impacted our economy.”

He said, “Due to these reasons, as Bangladesh Bank has taken cautionary measures for imports and opening Letters of Credit (LCs), our reserves are stable.”

He hoped that by June the dollar crisis and LC opening issues will be solved.

He also said that as our tax to GDP ratio is not satisfactory and our revenue collection is also low, therefore we have no other alternative but to expand the tax net.

He underscored the importance of tax automation, simplification of taxation system, use of technology.

He said that businessmen should have a mindset to pay tax willingly.

“If we do not pay taxes where from the government will get revenue?” he asked. 

Dr Shamsul Alam said that inflation control, sustainable economic growth and employment generation, attracting investment, reducing public sector borrowing will get priority in the next budget.  

Moreover, considering the global economic downturn and instability, the next budget will not be an over ambitious one, he added. 

Md Jashim Uddin said, “Due to global unstable economic situation, our private sector is losing their competitive edge which could hurt the whole economy by and large.”

He hoped that soon the bureaucracy’s red tape culture will be brought to an end.

For the growth of backward linkage industry there should be policy guidelines, he said.

A K Azad said the recent hikes in tariffs of  power, energy and gas put domestic industry and industrial production under pressure.

He said if energy price comes down in the international market its price in Bangladesh should be revised.

The discussion was divided into four sessions: taxation and VAT, Financial Sector, Industry and Trade and Infrastructure.

Former NBR Chairman Md Nojibur Rahman, Former NBR Member Alamgir Hossain, Managing Director of the Unilever Bangladesh Zaved Akter, City Bank Managing Director Masrur Arefeen, Executive Director of SANEM Dr Selim Raihan, Shanta Asset Management Ltd Chariman Arif Khan, Pran RFL group Chairman Ahsan Khan Chowdhury,  BTMA Preisident Mohammad Ali Khokon, Confidence group vice president Imran Karim, Abdul Monem Ltd Managing Director Mainuddin Monem spoke, among others.

Speakers of these sessions stressed on internal resource mobilization and digitization or automation of taxation system.

They also urged upon widening tax net, tax reforms, increasing tax-GDP ratio, simplification of tax, bond market development for long term financing, sustainable capital market development, safeguarding SMEs, improving backward linkage industry, inflation control, ensuring food security, reduction of corporate tax, bond facility for all export-oriented industries, product diversification, market diversification, signing of PTA and FTA, removing tariff and non-tariff barriers etc.  Editor of Daily Samakal Mozammel Hossain also spoke on the occasion.      

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