Revenue collection Hefty target to burden people: MCCI

The Metropolitan Chamber of Commerce and Industry on Friday expressed its concern that the higher revenue target set in the proposed budget for the financial year 2019-20 would put excessive pressure on the existing taxpayers.

The MCCI in a statement on the proposed budget said that the increased  NBR  tax  revenue  target  of Tk 3,25,600  crore, which was 16.29 per cent  higher  than  the  revised  tax revenue target of Tk 2,80,000  crore in  FY19, would be a  major  challenge.

‘The MCCI is concerned that this will put excessive pressure on the existing taxpayers,’ it said.

It also expressed disappointment that the proposed budget did not cut the tax rate for individuals and corporate entities while there was no proposal to increase the tax-free income threshold for individuals.

‘The threshold [of tax-free income] has not been  changed  for  the  last  4  years despite annual  inflation  of  at  least  5 per cent.  The MCCI strongly feels that the threshold should be raised,’ it said.

Besides, it said that the high rates of corporate taxes, coupled with tax on dividends, made Bangladesh an unattractive business destination.

Appreciating finance minister AHM Mustafa Kamal’s announcement to form a banking commission for brining discipline in the financial sector, the MCCI hoped that the commission would rightly identify the real problems the banks and other financial institutions were facing and suggest measures to address the problems.

‘However, we urge the government to implement these measures [suggested by the banking commission] in a timely manner,’ it said.

The MCCI urged the government to ensure that the new VAT law which would be implemented from FY20 would not increase operational complexities of businesses and that taxpayers should not be harassed for minor lapses in compliance with the VAT provisions.

Appreciating the higher allocation for the Annual Development Programme at Tk 2,02,721 crore, the trade body urged the government to take necessary measures to ensure efficient spending of the ADP funds.

It observed that the Bangladesh economy was progressing well, but below its true potential.

‘Inadequate  infrastructure,  shortage  of power  and  energy,  and  bureaucratic  bottlenecks  are still the  major  impediments  to  the  growth  of the  economy.  Also,  shortfall  in  revenue  collection and weak  ADP  implementation are currently  major  worries  for the  economy,’ it said.

The chamber, however, applauded Kamal for preparing the budget in view of  the  national  development  vision  and goals and objectives and  proposing  measures  to  smoothen  the  country’s graduation to  a  middle-income  country  by 2021.

The MCCI, in its praise for the finance minister, also mentioned his proposed measures to boost economic  growth,  collect revenue, reduce poverty,  provide  necessary  protection  to  some  local  industries,  and  widen  the prevailing  safety  net  for  deserving  groups to improve the economic  condition  of  the  people.

News Courtesy: www.newagebd.net