MCCI for a corporate tax reduction in line with neighboring countries

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The Metropolitan Chamber of Commerce and Industry (MCCI) has urged relevant authorities to set corporate tax rates in Bangladesh in line with regional competitor countries.

Although the government has reduced corporate tax rates over the past two years, they are still higher than those in neighboring India and Vietnam, MCCI said during a pre-budget discussion at the NBR building. at Segunbagicha in Dhaka on Wednesday.

The discussion was organized by the National Board of Revenue (NBR) with the budget for the financial year 2022-23 in mind.

NBR Chairman Abu Hena Md Rahmatul Muneem chaired the discussion.

Addressing the event, MCCI Chairman Saiful Islam said the corporate tax rate had been reduced to 5% over the past two years.

“However, the digit rate is still very high in our country. Hopefully in the future this will be brought back to par with neighboring countries.”

“Right here [in Bangladesh] unauthorized expenses and withholding tax (TDS) are so high that merchants do not benefit from the 5% tax reduction. In the case of limited companies, the corporate tax rate is 22.5%, but in some cases it varies between 40 and 50%,” he added.

Meanwhile, the NBR Chairman observed that there are still valid reasons to reduce the current corporate tax rate.

However, he said such a decision could not be made given the risks involved in collecting revenue.
During today’s discussion, MCCI made several proposals and suggestions on the current structure of income tax, VAT and other duties.

Besides the leaders of the MCCI, senior officials of the NBR were also present at the program.

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