Country’s leading industrialists on Tuesday urged the National Board of Revenue (NBR) to raise the Value Added Tax (VAT) free turnover ceiling for small and medium enterprises at Tk 48 lakh from the existing Tk 24 lakh.

They also demanded that 3% VAT, which is now charged for businesses having annual turnover upto Tk 80 lakh should be extended to Tk 1.5 crore.

The representatives from Bangladesh Chamber of Industries (BCI) came up with the demand at a pre-budget meeting with NBR with its chairman Nojibur Rahman in the chair.

During the meeting, the BCI leaders placed a 109-point recommendation to the NBR for consideration before finalising the budget for the next 2015-16 fiscal.

BCI senior vice president Mostafa Azad Chowdhury said the NBR should emphasise on the contribution of local manufacturers and services in investment while formulating the budget and policies.

‘The NBR should bring down the duties and finalise it at 25% on import of finished and luxurious items, 10% on locally manufactured intermediary material and essential materials, 2% on elements essential for manufacturing (which do not produce in Bangladesh), and zero percent duty on import of capital machinery import,’ he said while presenting the budget demands.

He also said the NBR should bring down the VAT rate at 10% from the existing 15% to support the businesses.

The leader has asked the NBR to establish scanners in all custom offices and increase its vigilance to combat import of goods through under invoicing/over invoicing and misdeclaration.

The other demands from the association includes cut in corporate tax rate, finalizing tax free ceiling for individual taxpayers at Tk 3 lakh from existing Tk 2.20 lakh, scope of black money investment at industrial investment (if allowed), and introduction of special packages and specific guidelines for seven Special Economic Zones to attract industries to shift and operate manufacturing there.

The leader also urged NBR to take necessary initiatives to eliminate alleged harassments by taxmen in the name of audit.

In response, NBR chairman Nojibur Rahman assured businesses that the tax body is taking necessary steps to eliminate alleged corruption and are now working for good governance.

‘Hundreds of people remain out of the VAT net, but the NBR is putting pressures only to the existing VAT payers which is not expected,’ BCI Director Mohabbat Ullah said urging NBR to extend its tax net to upazila level.

In response, Nojibur Rahman said the VAT intelligence directorate is preparing a list of people having eligibility of VAT payment, but evaded it.

Chairman of Aysha Memorial Specialised Hospital Priti Chakraborty demanded to reduce the duties on import of cardiac monitor, ICU ventilator, and anesthesia ventilator.

BCI director Joshoda Jibon Deb Nath said the NBR should bring down the 39% duty on ATM cards in line with the duty structure on IT sector to bring unbanked people in banking channel.

Lokman Hossain Akash, representing the Walton brand said that the duty imposed on import of raw materials for refrigerator, air condition, mobile and motorcycle should be reduced to 2%.

Addressing the meeting, NBR member Farid Uddin requested businesses to help combating misdeclaration.

‘If you want tariff rate reduction, please help us to combat misdeclrataion,’ he said.

NBR members (income tax policy) Parvez Iqbal, Firoz Shah Alam (VAT implementation), and BCI directors Nazmul Haque and Ranjan Chowdhury also spoke at the meeting.