Dhaka Chamber of Commerce & Industry (DCCI) President Ashraf Ahmed called on the National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan, FCMA at the NBR head office at Agargaon on Tuesday (3 September).
During the meeting, Ashraf Ahmed said that a complicated tax management system hinders the businesses of CMSMEs, therefore he suggests easing and formulating a CMSME-friendly tax structure, said a press release.
He said, as per the existing law, if the business losses cannot be adjusted with the income of other sources of the venture, the burden of additional tax is being imposed on the businessmen, for this purpose, he recommended the reinstatement of similar provision of Section 37 of the Income Tax Ordinance 1984.
The DCCI president also requested for the income tax system to be brought under the automated system with the aim of simplifying tax payment and all tax-related matters.
If the tax at source is not possible to be adjusted with the instalment of advance income tax at this moment, the provision may be issued to provide an opportunity to carry forward the tax at source deducted from the payment of goods and services provided by the MSME to the next tax year along with the income tax.
Currently, there is a provision of fine up to 400% if the HS code is incorrect even if the product description is correct. For this businesses often face harassment. If the product’s description or HS code is correct there should have been an opportunity to amend and withdraw the declaration of goods filed at the assessment stage by amending Section 86 (1) of the Customs Act 2023.
NBR Chairman Md Abdur Rahman Khan said that only 5% of our total population pay tax, whereas in India the rate is 23% and in existing reality we have no option to expand the tax net.
The NBR Chairman further said that the maximum revenue comes from the existing taxpayers and a large section of the society is out of the tax net, thereby increasing the pressure on the existing taxpayers.
If the non-taxpayers remain out of the net year after year, the existing taxpayers will be discouraged from paying tax, so the NBR will work on a priority basis to expand the tax net in the next six months, he said.
He further said that due to multiple tax layers at various stages, the effective tax rate especially of corporate tax sometimes increases, but the issue will be considered seriously by the NBR.
Without reducing tax collection target, the revenue management of the country will be streamlined along with rationalising the tax rate, he added.
The NBR chairman calls upon the business community to maintain the transaction process through cashless recordable system and banking channels which will help prevent TAX or VAT evasion.
He later urged DCCI to conduct research studies solely or jointly with NBR to identify various problems in the revenue sector and submit the probable findings that NBR would try to solve at the earliest possible time.
DCCI Senior Vice President Malik Talha Ismail Bari and Vice President Md Junaed Ibna Ali, Members of NBR Md Masud Sadiq, AKM Badiul Alam and G M Abdul Kalam Kaikobad were also present on the occasion.
