MCCI seeks turnover tax cut to 0.3pc to ease business burden

The Metropolitan Chamber of Commerce and Industry (MCCI) on Sunday urged the government to cut turnover tax on gross receipts to 0.3 percent from 1 percent, saying the existing regime burdens businesses and distorts the tax framework.

The chamber pointed to mismatches between tax deducted at source (TDS), taxes on gross receipts and final corporate tax liabilities, which it said raise compliance costs, strain cash flow and risk double taxation.

“To remove these distortions, tax rates across different stages need to be rationalised and aligned with business realities,” MCCI said. The proposal was placed at a pre-budget seminar in Dhaka for fiscal year 2026-27, jointly organised by MCCI and the Economic Reporters Forum.

In the seminar, Kamran T. Rahman, MCCI president, presented a comprehensive series of recommendations for the upcoming fiscal year 2024-25, calling for a decisive transition from a punitive tax approach to a supportive and growth-oriented fiscal framework.

He underscored the necessity of a balanced and realistic policy to stimulate investment and employment.

He also sought the continued cooperation of the media, expressing gratitude for the professional role journalists play in highlighting the critical challenges facing the private sector.

To bolster revenue collection and broaden the tax base, the MCCI president recommended the full integration of the National ID (NID) and Taxpayer Identification Number (TIN) databases.

Citing a significant discrepancy, he pointed out that while the country has over 10 million TIN holders, less than half currently file tax returns.

To address this, he suggested specific measures intended to remove the fear associated with entering the tax net, including introduction of a nominal annual tax of Tk 100 or Tk 1,000 for new taxpayers to encourage registration and development of a simplified mobile application for hassle-free return filing.

He urged a supportive budget to lower business costs, encourage investment and restore private sector confidence, stressing the need for coordinated policy action to stabilise the economy and sustain growth.