The country’s apex trade body on May 16 requested the government to impose specific duties on edible oil, powdered milk, baby foods, basic metal and raw materials in the next budget to keep prices of the essential products and industrial raw materials stable. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) also recommended specific duties on other essential products on which ad valorem (in proportion to the value of something) duty have been imposed.

The FBCCI placed the set of proposals at a consultative meeting in the run-up to the next budget, jointly organised by the National Board of Revenue (NBR) and FBCCI in Dhaka. The FBCCI made the proposals after compiling all the suggestions the apex trade body received from chambers and associations across the country. Among others, Finance and Planning Adviser Mirza Azizul Islam, NBR Chairman Badiur Rahman, FBCCI President Mir Nasir Hossain and ICC-B President Mahbubur Rahman attended the meeting.

In the proposals, the apex trade body suggested restructuring of the existing duty structure from four-tier to three-tier-5 percent, 10 percent and 25 percent. The federation said the duty restructure should be changed in the light of the global and regional trade agreements. The FBCCI also demanded that the lowest individual income tax slab be fixed at Tk 1.8 lakh and proposed minimum income tax of Tk 1,500 per year. The apex trade body proposed 10 percent income tax for annual incomes between Tk 1.8 lakh and Tk 4.8 lakh, 15 percent between Tk 4.8 lakh and Tk 7.8 lakh and 20 percent between Tk 7.8 lakh and above.

The FBCCI also suggested formulation of a price database on the basis of transaction value by establishing a non-profiteering organisation. The federation said as the pre-shipment inspections have failed to serve ultimate benefit of inspection, a price database will help end the existing valuation and classification problems. The FBCCI proposed an end to the discretionary power of the income tax officials and urged to implement the Value Added Tax (VAT) order, which was announced in February 2005.

To their suggestions The FBCCI also urged the government on the eve of the preparation of the next fiscal year’s budget to retain the tax holiday facility until 2013. The government has been contemplating the withdrawal of this facility in view of losing a great deal of revenue on this score.