Tax cuts to facilitate export diversification: SCB chief

The reduction of corporate taxes in the country’s flagship sectors will increase investment, and aid export diversification, reported Md Rezaul Karim, chairman of the Shippers’ Council of Bangladesh (SCB).

“However, the personal tax-no cost earnings restrict need to be improved,” he explained in reaction to the proposed budget for the fiscal 12 months 2022-23.

He mentioned the funds was well timed contemplating the write-up-Covid financial recovery in the context of the Russia-Ukraine war.

“We imagine it is probable to apply this spending budget even if it is complicated. Some concerns, on the other hand, want to be reconsidered and stable policy is necessary on some issues,” Rezaul Karim explained.

In the funds speech, the finance minister proposed to make the foreign exchange earnings by the corporates through the banking channel tax-totally free up to 2030. It will enhance the contribution of the services sector, he stated.

“Deduction at the source of financial institution interest of the firms has been increased from 10% to 20%, and the tax at the source of exported products has been increased from .5% to 1%. This needs to be reconsidered,” the SCB chief said.
  
Reducing corporate tax prices on shipping agents and providing fiscal incentives to shipping brokers are also vital, he additional.