Tax cuts to facilitate export diversification: SCB chief
Reducing corporate tax rates on shipping agents and providing financial incentives to shipping agents are also necessary, he said
The reduction of corporate taxes in the country's flagship sectors will enhance investment, and facilitate export diversification, said Md Rezaul Karim, chairman of the Shippers' Council of Bangladesh (SCB).
"However, the personal tax-free income limit should be increased," he said in reaction to the proposed budget for the fiscal year 2022-23.
He said the budget was timely considering the post-Covid economic recovery in the context of the Russia-Ukraine war.
"We think it is possible to implement this budget even if it is difficult. Some issues, however, need to be reconsidered and stable policy is needed on some matters," Rezaul Karim said.
In the budget speech, the finance minister proposed to make the foreign exchange earnings by the corporates through the banking channel tax-free up to 2030. It will enhance the contribution of the services sector, he said.
"Deduction at the source of bank interest of the companies has been increased from 10% to 20%, and the tax at the source of exported goods has been increased from 0.5% to 1%. This needs to be reconsidered," the SCB chief said.
Reducing corporate tax rates on shipping agents and providing financial incentives to shipping agents are also necessary, he added.
