“DWCCI call for revenue reforms to achieve ‘ambitious’ target”
Economic Reporter :
Dhaka Women Chamber of Commerce and Industries (DWCCI) has praised the government for increasing the personal tax limit for women to Taka 4, 00,000 instead of Taka 3, 50,000, and also for increasing the female quota from 10% to 20% for admission in technical education.
“Proposal for limiting income tax return form for 12 sections with respect to tax deduction at the source instead of presently exists 29 sections will help ease promote the business and investment in the country,” the chamber chief Naaz Farhana said.
DWCCI, however, has strongly recommended allocating Tk. 200 crores for the development of women entrepreneurs, exemption of Tax and VAT for new women entrepreneurs for the first 3 years of starting a business and reducing the new Trade License fees and renewal fees up to 50%.
They have noted that the budget reflects both promises made during an election year and attempts to tackle ongoing and impending issues such as inflation, foreign reserves, dollar prices, LDC graduations, and universal pensions, among others.
The trade bodies have described the 16 per cent revenue growth target as “ambitious”, requiring significant reforms in tax administration to achieve.
In her initial reaction, Naaz Farhana, the president of the trade body, expressed concerns about the challenges associated with attaining the revenue target.
“There are challenges in the budget, and revenue collection might be a challenge,” she shared her views on the proposed budget with The New Nation over the phone.
“We always say, we have to get out of the easy way [for revenue collection],” she said, adding that the revenue target requires structural reforms.
Naaz Farhana, stressed the importance of capacity building within the National Board of Revenue (NBR) to increase revenue earnings.
She highlighted that when the NBR sets ambitious targets, businesses become apprehensive, stating, “This time there is a 16 per cent tax growth… if you say that the collection will be more, we businesses are worried that it will come to us! It always happens.”
Farhana stressed the significance of implementing automation in the taxation system and expanding the tax net to fulfil the higher revenue target. She commended the decision to reduce the documentation process when submitting corporate companies’ withholding tax returns.
Naaz Farhana urged the NBR to reduce the tax rate for non-listed companies by at least 2.5 per cent, highlighting that the country’s corporate tax rate is high compared to other South Asian neighbours.
