4:42 pm - Monday January 18, 7469

Metropolitan Chamber calls for income tax cuts

The Metropolitan Chamber of Commerce and Industry (MCCI) has recently called for cuts to both individual and corporate tax rates in Bangladesh, as part of its annual 2014/15 pre-Budget submission to the Government.

taxDue to the cost of living increases suffered by families, while income tax thresholds have not kept pace, the MCCI is recommending that the initial tax-free income level should be increased to Tk. 275,000 (USD3,545) from Tk. 220,000 for individuals.

In addition, to boost business growth and foreign direct investment, the MCCI suggests that the corporate tax rate should be reduced to 20 percent from its current level of 27.5 percent for listed companies, and to 25 percent from 37.5 percent for non-publicly traded companies. The corporate tax rate for financial companies, including banks and insurance companies, would be cut to 35 percent from 42.5 percent.

Among its other proposals, the Chamber is also seeking relief for small importing businesses, through a reduction in the advance income tax on imports from 5 percent to 2.5 percent, and also tax exemptions for the tourism industry to boost its competitive position and provide additional foreign earnings for the country.