The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has proposed increasing the tax-free income ceiling for individual taxpayers to Tk 500,000 from the existing Tk 375,000, aiming to reduce pressure on low- and middle-income earners.
The proposal was presented at a joint pre-budget consultation between the business community and the National Board of Revenue (NBR) on Wednesday.
FBCCI Administrator Md Abdur Rahim Khan placed the proposal at the meeting, held at the Pan Pacific Sonargaon Dhaka in the capital.
Finance Minister Amir Khosru Mahmud Chowdhury and Commerce Minister Khandaker Abdul Moktadir attended the session, which was chaired by NBR Chairman Md Abdur Rahman Khan. Business leaders from different sectors also outlined their priorities for the upcoming budget.
In its broader set of proposals, the FBCCI called for reducing the corporate tax rate for non-listed companies from 27.5% to 25%, and cutting the turnover tax from 1% to 0.5% to ease the cost of doing business.
The organisation also proposed lowering the 1% source tax on all industrial sectors, including export-oriented ready-made garments, to 0.5%, and keeping the reduced rate in place for five years to support exporters.
To support small and medium enterprises, the FBCCI recommended a 2% VAT rate on the local supply of goods, arguing that a lower rate would encourage compliance and stimulate domestic trade.
It further suggested a rationalised import duty structure to protect local industries, proposing a maximum 1% duty on machinery, spare parts and raw materials not produced locally, and up to 3% on those available domestically.
Responding to the proposals, Finance Minister Amir Khosru Mahmud Chowdhury said the government would consider them carefully. He added that while not all demands may be met, efforts would be made to make tax and regulatory frameworks more business-friendly.