FBCCI seeks revision of tax-free income limit for individuals

Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President Mahbubul Alam has recommended to review the limit of tax free income of individuals.

He said, ‘Taking into account the cost of living, inflation and the overall economic situation, we requested to increase the income tax limit from Tk 3 lakh 50 thousand to Tk 4 lakh 50 thousand. But the proposal was not taken into consideration. Considering the current price inflation, I recommend to reconsider this tax-free limit of Tk 4 lakh 50 thousand.

He said these things at a press conference organized on Saturday (June 8) on the proposed budget for the fiscal year 2024-25. Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T Rahman, Dhaka Chamber President Ashraf Ahmed and members of FBCCI Board of Directors and businessmen were also present in the press conference.

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In a press conference, FBCCI President said, ‘Advance Income Tax (AIT) and Advance Tax (AT) at the import level are increasing business costs. We proposed AIT and its abolition. But no reflection was seen in the proposed budget in this regard. Non-proper adjustment or refund of advance income tax increases operating expenses and affects working capital. Requesting to reconsider the proposal to abolish advance income tax and advance tax.’

He said, ‘We proposed to reduce the rate of advance income tax and deduction of tax at source on all exports to 0.5 per cent instead of 1 per cent. But there was no reflection on this in the budget. Request to reconsider the proposal to retain the export market in the existing situation.’

Mahbubul Alam also said, ‘The existing import duty on import of capital parts and construction materials by companies located in economic zones and hi-tech parks has been increased from zero percent to one percent. This will discourage investors in these special areas and send a wrong message to foreign investors.’