The New Nation - Internet Edition

Staff Reporter

Leaders of the Dhaka Chamber of Commerce and Industry yesterday demanded a specific, clear-cut policy on tax holiday for the next ten years in the coming budget, as the government is planning incentive packages to promote industrialisation.

Besides, the DCCI also urged for raising the tax-free income to Tk 2.5 lakh from the existing Tk 1.5 lakh considering the pressure of inflation.

The demands were placed at pre-budget discussion between the DCCI leaders and the National Board of Revenue (NBR) with NBR Chairman Muhammad Abdul Mazid in the chair.

"Tax holiday for the ICT should be extended up to five years and for agriculture sector at least three years to create employment opportunities and poverty alleviation," DCCI President Hossain Khaled said in the meeting.

He said the Pre-shipment Inspection (PSI) system was just an interim measure and it can be cancelled.

"Many developed countries in the world adopt the customs valuation system.

Although Bangladesh is talking about the cancellation of PSI companies, it could not do that just for a lack of database or computerisation," he said.

He said that it is possible for the Customs Department of the NBR to create a database with its own workforce to make transparent customs valuation.

The business leader pointed out that the importers are paying Tk 1700 crore each year to the PSI companies as commission, and this extra cost is ultimately borne by the consumers.

"As such, there should be a straight announcement of the government when the PSI system will be abolished. It is necessary to announce this in the upcoming budget," he said.

He also called for harmonising the HS Code system to avoid hassle on part of the importers and corruption of NBR officials.

The Chamber suggested empowerment of the Tax Ombudsman, vesting in him the power for announcement of final decision.

The DCCI leaders recommended exempting import duty of raw materials of those items, which are not produced in the country.

The DCCI gave suggestion for reconstructing the duty slab as 5 per cent (for essential items, machinery and raw materials), 10 per cent (for intermediary goods) and 15 per cent (for luxury items and imported readymade consumer products which are produced in the country).