Inward remittance: Freight forwarders for exemption of TDS

Staff Reporter :
Freight forward agents demand withdrawal of deducted tax at sources (TDS) on inward remittance against profits or commission.
As per the existing provision, the freight agents are paying 15 per cent tax on inward remittance against profits.

Bangladesh Freight Forwarders Association (BAFFA) made the demand at a pre-budget discussion with the National Board of Revenue (NBR) at the latter’s office on Tuesday.

In the budget proposal, BAFFA President Kabir Ahmed said, “We are paying 15 per cent tax on freight commission, but the rate is 4 to 6 per cent for shipping agents, 10-12 per cent for courier services, 6 to 8 per cent for indenting commission and 10 per cent for C&F agent commission. So, it is discriminatory provision and should be rationalized in the upcoming budget.”

Besides, the association also demanded for reduction in corporate tax to 25 per cent from the existing 27.5 per cent, allocation of land at airport and seaport area for setting up warehouses and enhancement of individual income tax-free limit to Tk 5 lakh considering the current inflation.

On the other hand, Bangladesh Ship Breakers’ Association (BSBA) proposed for 40 per cent depreciation facility and 100 per cent duty exemption on used Mobil.

While Bangladesh Indenting Agents Association (BIAA) proposed withdrawal of the existing 5 per cent tax on indenting commission.
In the budget proposal, the BIAA President Nuruzzaman said that the revenue earning would increase significantly, if the existing VAT was withdrawn from indenting service exports.

NBR Chairman Abu Hena Md Rahmatul Muneem assured them of taking the proposals into account during the preparation of the upcoming budget.