Make a 2-year survival arrange for businesses
The government should make a two years' survival arrange for businesses, outlining different recovery guidelines, to guard the country's trade and economy amidst the pandemic, said businesses yesterday.
For instance, the federal government should withdraw the proposed advance tax and value added tax on imports, said Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh.
In the recent budget, the federal government proposed a 2.25 % decrease in corporate tax whereas it ought to be at least 5 % as the firms are suffering now, he said.
Ahmed also said the country has only five million tax identification number (TIN) holders, among whom 50 % pay tax as the rest are irregular.
So, the tax net should also be widened for more income generation, he said, adding that the federal government should also think of a major plan in education.
He expressed disappointment on the imposition of VAT on educational institutions, saying in that critical time it could ultimately be a burden for students' families. Ahmed also suggested that the same folks shouldn't formulate tax policies and acquire taxes.
Ahmed was addressing a post-budget webinar on "tax and tariff implications on trade and commerce" organised by the Bangladesh German Chamber of Commerce and Industry (BGCCI). Shahed Akhter, executive director of the BGCCI, moderated the discussion.
Corporate tax was reduced by some 7.5 percentage points during the last four years, pointed out Mosharraf Hossain Bhuiyan, Bangladesh's ambassador to Germany, suggesting strengthening implementation of allocations in social safety net programmes.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), demanded 10 years' tax holiday for investments on manmade fibres, reasoning that the united states needed a lot of the investment to meet up global demand.
Mohammed Humayun Kabir, ceo of Shinepukur Ceramics, said the parliament holds no wide discussion on the supplementary budget to learn the difference between your allocation and revised spending.
Sometimes the gap is big so the discussion is important to know whether money has been spent on the same old things, he added.
With out a massive reform in fiscal management, the private sector investment to GDP ratio may not improve, he said.
For many years, this ratio has remained stagnant at 23 % although the budget proposed increasing it to 25 %. However, with fiscal reforms, reaching 32 % to 35 per cent is possible, he said.
In a keynote paper, Mashuque Ahmed, CEO of Ahmed Mashuque and Co, said the challenges faced by individuals related to refunds and dealings with banks ought to be raised through a common platform for availing proper solutions.
Hindrances, such as for example hidden taxes, should be removed to make sure a business-friendly tax policies, he said.
Saad Omar, secretary general of Switzerland Bangladesh Chamber of Commerce and Industry, and Thomas Hoffmann, president of the BGCCI, also spoke.
