DHAKA, Sept 4, 2024 (BSS) - Dhaka Chamber of Commerce and Industry (DCCI) 
today urged the National Board of Revenue (NBR) to simplify tax structure for 
ensuring Cottage, Micro, Small and Medium Enterprise (CMSME) friendly 
environment. 

The trade body made the call at a meeting with NBR Chairman Md Abdur Rahman 
Khan at NBR headquarters in the city, said a press release.

During the meeting, Abdur Rahman Khan said only 5 percent of the country's 
total population pay tax, whereas in India the rate is 23 percent and in 
existing reality NBR has no option to expand the tax net. 

"The maximum revenue comes from the existing tax payers and a large section 
of the society is out of the tax net, thereby increasing the pressure on the 
existing taxpayers. If the non-tax payers remain out of the net year after 
year, the existing taxpayers will be discouraged from paying tax, so the NBR 
will work on priority basis to expand the tax net in the next six months," he 
continued.

Due to multiple tax layers at various stages, effective tax rate especially 
of corporate tax sometimes increases but the issue will be considered 
seriously by the NBR, he added. 

Without reducing tax collection target, the revenue management of the country 
will be streamlined along with rationalizing the tax rate, he said. 

The NBR chairman called upon the business community to maintain the 
transaction process through cashless recordable system and banking channels 
which will help prevent TAX or VAT evasion. 

Later, he urged the DCCI to conduct research studies solely or jointly with 
NBR to identify various problems in the revenue sector and submit the 
probable findings that NBR would try to solve at the earliest possible time.

During the meeting, DCCI President Ashraf Ahmed said complicated tax 
management system hinders the businesses of CMSMEs, therefore he suggests 
easing and formulating a CMSME friendly tax structure. 

He said, as per the existing law, if the business losses cannot be adjusted 
with the income of other sources of the venture, the burden of additional tax 
is being imposed on the businessmen.

For this purpose, he recommended, the reinstatement of similar provision of 
Section 37 of the Income Tax Ordinance 1984. 

The DCCI president also requested for the income tax system to be brought 
under the automated system with the aim of simplifying tax payment and all 
tax related matters. 

"If the tax at source is not possible to be adjusted with the installment of 
advance income tax at this moment, the provision may be issued to provide an 
opportunity to carry forward the tax at source deducted from the payment of 
goods and services provided by the CMSME to the next tax year along with the 
income tax," he added. 

Currently, he said, there is a provision of fine up to 400 percent if the HS 
code is incorrect even if the product description is correct. 

"For this businesses often face harassment. If the product's description or 
HS code is correct there should have been an opportunity to amend and 
withdraw the declaration of goods filed at the assessment stage by amending 
Section 86 (1) of the Customs Act 2023," he added.

DCCI Senior Vice-President Malik Talha Ismail Bari and Vice President Md. 
Junaed Ibna Ali, Members of NBR Md. Masud Sadiq, AKM Badiul Alam and G M 
Abdul Kalam Kaikobad were also present on the occasion.