To inject more private investment, government should reconsider corporate tax cut in all categories: DCCI president

DHAKA, June 8 (NsNewsWire) — President of Dhaka Chamber of Commerce & Industry (DCCI)AbulKasem Khan in his initial reaction on National Budget 2018-19 proposed the government to reconsider slashing corporate tax in all categories at least 2.5%. In the proposed budget, government only reduces 2.5% corporate tax on publicly and non-publicly traded banks, Insurance and NBFIs. He said if government reduce corporate tax rate from the existing rate and reinforce us to reinvest that money into the business, we will willingly do that.At present private sector investment to GDP ratio is 23% but if we want to increase it 1% more, Taka 25,000 crore to be invested in a year. Government has set a target to increase private sector investment to GDP ratio to 25.15% which will be challenging if corporate tax rate is not cut down, he said.

In the proposed budget, double taxation system on dividend is withdrawn which AbulKasem Khan hailed. He also hailed the decision of the government for reducing duty onimports of accessories for locally produced motorcycle, mobile phones and tire tubes. He said government should increase the budget on railway under ADP which is 11,155 crore taka 3.12% increased than that of last year. He said budget on railway should be double for better communication network. Government has formed a Committeenamed “National Committee for Monitoring and Implementation”to work out to position Bangladesh below 100 notches in the Ease of Doing Business Index within the next five years which AbulKasem appreciated in his instant reaction. He also proposes for inclusion of private sector participation in this Committee. He also proposed not to increase VAT rate this year.He also hails the ADP allocation of Taka 1,73,000 crore which increase 16.59%from the revised budget.

He hailed the government for allocating Taka 100 crore for skill development projects. In this regard he said that tax rebate should be given over the 5% of gross income of a company that is invested in research & development and skill development activities.