DHAKA: Dhaka Chamber of Commerce and Industry (DCCI) has urged National Board of Revenue (NBR) to raise the tax-free limit of the wealth tax, also known as wealth surcharge, at Tk4 crore from the existing Tk2 crore from the upcoming budget for the fiscal year 2015-16.
The chamber leaders argued, “As all the taxpayer make assets through paying income tax, further imposition of tax on their wealth is illogical.”
The chamber, however, said the rest of the slabs can remain unchanged, but the minimum tax-free slabs need a raise to reduce the pressures of tax from the business community.
The DCCI has placed its charter of demand to the NBR recently with a set of recommendations, including 23 on income tax and its rules, 23 on custom duties while seven on Value Added Tax (VAT).
According to the Income Tax Ordinance-1984, surcharge or wealth tax is applicable on having net asset worth above Tk2 crore to up to Tk10 crore at 10%, while 15% surcharge for net assets up to Tk20 crore, 20% for up to Tk30 crore while 25% for above Tk30 crore.
The NBR imposes the tax based on the net assets that taxpayers declares in their income tax returns.
Regarding corporate tax, the DCCI has requested NBR to reduce the corporate tax rate for the merchant banks from existing 37.5% to 35%, listed companies from 37.5% to 35%, and for brokerage operations at 30% from the existing 35%.
For the individual taxpayers, the chamber recommended the tax-free income limit at Tk2.75 lakh from existing Tk2.20 lakh while it has advised the board to finalise the limit for women and elderly persons from Tk2.75 lakh to Tk4 lakh, for physically disabled persons from Tk3.5 lakh to Tk4 lakh, and for freedom fighters from Tk4 lakh to Tk4.5 lakh.
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