DHAKA, Feb 7, 2024 (BSS) - The Metropolitan Chamber of Commerce and Industry (MCCI) has proposed for reducing corporate tax rate for the next fiscal year (FY25).

The MCCI made the proposal at a pre-budget discussion with National Board of Revenue (NBR) held at the NBR Bhaban in the capital's Agargaon area.

In the budget proposal, MCCI president Kamran T Rahman said that the corporate tax rate was reduced by 2.5 percent in the last fiscal year in almost all cases subject to some conditions.

But, under the current circumstances, none can enjoy the benefits of the reduced corporate tax rate.

Kamran said although this corporate tax rate is 20 percent for the public limited companies, but it can increase up to 40 percent to 50 percent in some cases.

The MCCI president said since Bangladesh is going to graduate from the LDCs by 2026, there is a need to restructure the income tax rate, VAT rate, supplementary duty and customs duty.

He said Bangladesh needs to put emphasis on automation.

Besides, the MCCI president suggested for bringing reforms in the existing laws related to e-invoicing in submission of VAT returns, tax fixation system, appeal, tribunal, and in ADR, introducing provision for conducting hearing through online, reconsidering the mandatory provision for submitting acknowledgment slips for availing 43 types of services.

Speaking on the occasion, NBR Chairman Abu Hena Md Rahmatul Muneem said that challenges would always remain in the economy and none can expect a nice environment always.

He also assured of considering the issue of lowering the corporate tax rate rationally since such rate has been reduced by 7.50 percent over the last few years.

Muneem said support from all stakeholders is necessary to make the automation initiative a success. "But, it's not possible to do something overnight for which time is needed."