FICCI calls for the simplification of tax deduction processes
Foreign Investors' Chamber of Commerce and Industry (FICCI) has called for simplification of the tax deduction process, suggesting that the ultimate responsibility should lie with the taxpayer.
FICCI President Zaved Akhtar presented a comprehensive outline of how the interim government can implement necessary reforms to enhance the business climate during a meeting with Finance and Commerce Adviser Dr Salehuddin Ahmed at his office today (30 September).
He recommended practical measures, including reforms in the banking sector and tax-revenue administration, as well as maintaining law and order to foster a favourable business environment.
The FICCI also proposed leveraging world-class regulatory technology to enhance efficiency and effectiveness, increasing the tax-to-GDP ratio, and easing transaction processes.
Additionally, the FICCI president highlighted the need to address the punitive corporate tax, particularly in the banking sector.
They also raised concerns about the additional withholding income tax on interest payments earned by non-resident institutions from foreign currency borrowing, which raises the cost of borrowing for Bangladeshi borrowers.
Furthermore, FICCI emphasised that banks should not bear the responsibility for tax deductions at source for customers' direct tax payments.
The adviser assured the delegation of the government's commitment to addressing these issues and working collaboratively with FICCI to foster a more favourable business environment in Bangladesh.