The country’s different trade bodies and business associations have placed a number of recommendations and demands to the government for incorporating those in the national budget for the financial year 2016-17 to be placed in Jatiya Sangsad today. They want that their recommendations and demands will be paid heed with due importance in the budget proposals that are scheduled to be placed by finance minister AMA Muhith in the parliament in the afternoon. Like the previous years, most businesses on various recent occasions have raised some common demands for reduction of corporate tax, multiple value-added tax rates for different sectors and continuation of package VAT system and increase in the ceiling of tax-free individual income. The businesses who are engaged in manufacturing have demanded some benefits for the protection of local industries including imposition of supplementary duty on imported finished goods. The major demands by the trade bodies and business associations are highlighted below:

FBCCI

The Federation of Bangladesh Chambers of Commerce and Industry has demanded introduction of multiple value-added tax rates for different sectors and continuation of package VAT system for small and medium traders instead of implementing a single VAT rate at 15 per cent for all. The country’s apex trade body has demanded income-tax threshold be raised to Tk 3 lakh and consider wider tax cuts to avert tax evasion and capital flight. The apex chamber has proposed Tk 3.25 lakh as the ceiling for women and senior citizens above 65 years, Tk 4 lakh for people with disability and Tk 4.5 lakh for injured freedom fighters. The FBCCI has also demanded 40.5 per cent corporate tax for non-publicly traded banks and financial institutions while 38.5 per cent for publicly traded banks and financial institutions. It has also demanded withdrawal of the provision of excess profit tax in the income tax ordinance. The chamber has recommended 15 per cent VAT on value addition instead of total sales price, increasing VAT-free turnover threshold to Tk 36 lakh and levying 3 per cent turnover tax at production stage for businesses having annual turnover above Tk 36 lakh to Tk 1.5 crore.

DCCI

The Dhaka Chamber of Commerce and Industry has demanded a reduction of the rate of corporate income tax for listed companies to 25 per cent from 27.5 per cent, for merchant banks to 35 per cent from 37.5 per cent and for brokerage houses to 30 per cent from 35 per cent. It has recommended for an increase in tax-free income limit for individual taxpayers to Tk 3.5 lakh from the existing Tk 2.5 lakh considering the augmented cost of living and high inflation in the country. The chamber has urged the National Board of Revenue to take initiative to terminate the source of undisclosed money generation along with discontinuation of legalising scope for untaxed money. The trade body has said that highest rate of corporate tax should be brought down to 35 per cent from the existing 45 per cent considering cost of doing business and inflation. The DCCI has demanded minimum individual income tax be set at Tk 3,000, Tk 2,000 and Tk 1,000 on the basis of locations of the taxpayers.

MCCI

The Metropolitan Chamber of Commerce and Industry has demanded a cut in corporate income tax rate and increase in tax-free income ceiling for individual taxpayers. The trade body has demanded a reduction of the highest income tax rate for individual taxpayers to 25 per cent from the existing 30 per cent. It has also said tax-free income threshold for female and citizens above 65 years old should be Tk 3.3 lakh, for people with disability to Tk 3.85 lakh and for war-wounded freedom freighters to Tk 4.5 lakh. The chamber has also demanded removing the disparity being faced by domestic industries and reduction of duty in import of basic raw materials and intermediate goods saying the measure will increase competitiveness of domestic industries. The MCCI has demanded a reduction in the maximum rate of individual income tax to 25 per cent from the existing 30 per cent while the DCCI said the rates should be set ranging from 5 per cent to 20 per cent instead of the current 10 per cent to 30 per cent.

BWCCI

The Bangladesh Women Chamber of Commerce and Industry has demanded 4 per cent value-added tax at all stages on business for women entrepreneurs instead of 15 per cent proposed at the new VAT and Supplementary Duty Act. Like the FY16, the trade body has demanded an increase in the threshold of tax-free income for individual women taxpayers to Tk 3.5 lakh from the existing Tk 2.75 lakh. The chamber has also sought reduction of trade licence fees, increasing the ceiling of VAT-free turnover to Tk 50 lakh, an increase in cash incentive on potato exports, reduction of customs duties on import of paper for printing industries, removal of harassment in customs houses, and duty waiver on capital machinery import. It has recommended continuation of Tk 100 crore as grant in the proposed budget for the development of women entrepreneurship and allocation of 15 per cent from the equity and entrepreneurship fund of Bangladesh Bank.

BGMEA

The Bangladesh Garment Manufacturers and Exporters Association has demanded continuation of the income tax at source on export at the rate of 0.30 per cent for the next five years. The BGMEA has demanded full import duty waiver on fire-fighting equipment for all types of factories including the export-oriented ones in the proposed budget to help ensure the safety of workers and assets. The association has sought permission for duty-free import of fire proof colour coating used in pre-fabricated building materials for running remediation and retrofitting of RMG factories. The apparel exporters have demanded the facility of special tax calculation at the reduced rate of 10 per cent for RMG exporters that the NBR withdrew in June 2014 be revived for the next five years, introducing normal tax calculation at 35 per cent for the sector.

BKMEA

The Bangladesh Knitwear Manufacturers and Exporters Association has demanded duty-free import of fire preventing and energy saving machinery for all export oriented sector and exemption from VAT on different services including laboratory test, consultancy, compliance audit, legal consultancy, CSR-related, building construction and courier service charges. The BKMEA has requested the revenue board to impose export tax on cost of cutting and making of apparel products instead of freight on board prices. It has also demanded the sector be exempted from paying 1 per cent duty on capital machinery import.

BTMA

The Bangladesh Textile Mills Association has demanded withdrawal of the minimum tax, which is now 0.50 per cent of the annual turnover, for the primary textile sector, and the sector be exempted from paying 1 per cent duty on capital machinery import. The BTMA has demanded tax holiday facility for new investment in spinning, weaving and other factories under primary textile sector to encourage more investment in the sector.

BGAPMEA

The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association has urged the revenue board to authorise the association to give utilisation permission that will allow its member firms to avail duty-free imports of raw materials.

FICCI

The Foreign Investors’ Chamber of Commerce and Industry has demanded rationalising the corporate income tax structure for non-publicly traded companies in the budget proposals to promote industrialisation and attract more foreign investment to the country. It has proposed to reduce corporate income tax rate for non-listed companies by 10 per cent to 15 per cent to minimise the gap between the marginal and the effective tax rate. The FICCI has also sought an increase in tax-free income threshold to Tk 3 lakh from existing Tk 2.5 lakh for individual taxpayers, and a reduction of the highest slab of income tax rate for individuals to 25 per cent from 30 per cent.

DSE

The Dhaka Stock Exchange has demanded an increase of tax-free dividend income limit up to Tk 1 lakh from existing Tk 25 thousand with a view to spurring market condition. The DSE has proposed to reduce turnover tax to 0.015 per cent from 0.05 per cent in the upcoming fiscal year in a bid to reduce transaction cost for encouraging investors in participating on the trading and for increasing overall turnover of the stock exchanges. The Dhaka bourse has demanded a gap of 10 per cent income tax between listed companies and non-listed companies and a reduction of merchant banks tax rate equal to trading rights entitlement certificate holders from the next fiscal year.

REHAB

The Real Estate and Housing Association of Bangladesh has demanded absolute indemnity for investment of undisclosed money in the housing sector for the next 10 financial years. The REHAB has demanded that the registration cost of land and flats including fees and value-added tax be lowered to 4 per cent from 14 per cent of the investment and a minimal registration fee be set for the secondary market to increase the cash inflow in the sector. It has demanded a re-financing facility for 30 to 35 years at a single-digit interest rate. The REHAB has also demanded withdrawal of customs duties on import of fire extinguishers and other instruments for residential and commercial buildings.

BARVIDA

The Bangladesh Reconditioned Vehicles Importers and Dealers Association has demanded a special duty benefit in import of used hybrid cars and year-wise depreciation benefit at higher rates on import of used cars from the next fiscal year. It has demanded 25 per cent depreciation facility for one-year-old cars, 35 per cent for cars up to 2 years old, 45 per cent for cars up to 3 years old, 50 per cent depreciation for up cars up to 4 years old and 55 per cent depreciation facility for used cars up to 5 years old. The BARVIDA has demanded a restructure of a slab to bring the cars with 1501cc to 2500cc under the duty structure. It has also recommended withdrawal of supplementary duty on import of microbus to facilitate public transport in the country.

AMTOB

The Association of Mobile Telecom Operators of Bangladesh has demanded withdrawal of VAT on internet use and modem sales and withdrawal of the Tk 100 SIM tax and Tk 100 SIM replacement tax as well.

BCWMA

The Bangladesh Ceramic Wares Manufacturers Association has demanded a withdrawal of supplementary duty on locally-made ceramic tiles and an increase in SD on imported finished goods to give more protection to the domestic industry so that the sector can grow further. The BCWMA has also demanded reduction of customs duty to 5 per cent from existing 10 per cent on import of different raw materials for ceramic making including crude mica, talc, calcium carbonate, potash soap, silk screen, etc.

BAPI

The Bangladesh Association of Pharmaceuticals Industries has demanded withdrawal of customs duties and VAT on import of raw materials for manufacturing anticancer medicines arguing that the import of anticancer medicines enjoyed VAT and duty-free facility. The BAPI has also sought a reduction in customs duties on import of specialised racks used in preservation of medicines and pharmaceutical laboratory furniture to ensure the quality of medicines in line with international standards.

Zhong Guoyan sifted through piles of fish at a Wal-Mart in Shenzhen, one of China’s largest cities. She studied the fins, to make sure they were bright red and firm. She peered at the eyeballs – were they bulging?, reports AP. “When I come here, I have a look,” she said. “If it’s good, then I will buy it. If it’s only cheap, I won’t buy it.” In American Wal-Marts, customers don’t get to fondle their fish. But America is not China, as the world’s biggest retailer has learned. If the Arkansas-based company wants to win over foreign consumers, it has to shed some of its American ways, and cater to very different customs and conventions that are fast changing. Zhong eventually tossed a couple of fish into a plastic bag – a small victory in Wal-Mart’s struggle to build an international empire. The stakes are high: The company can’t count on much growth in the U.S. – it’s facing challenges at home with intense competition from Amazon.com and dollar stores – so the retailer is depending more on its operations overseas. China is the ultimate prize. The Chinese grocery market, already the world’s largest at $1.1 trillion a year, is expected to grow to $1.5 trillion in sales in just the next four years, says IGD, a global consumer products research firm. “China remains a strategic market for our future,” Doug McMillon, CEO of Wal-Mart Stores Inc. recently told investors. Getting the food business right is critical for Wal-Mart. Shoppers buy groceries more often than anything else. If Wal-Mart can get them in the door to buy food regularly, perhaps they will visit more frequently for items like pajamas and coffee makers – and eventually become loyal online customers, too. The company has taken some lumps trying to cross borders in food retailing. Overall international sales growth dropped 9.4 percent last year largely because of the strong dollar. And while Wal-Mart’s overseas business had a strong start to this year, it faces long-term challenges. Wal-Mart gave up in Germany and South Korea in 2006. It’s closing stores in Brazil. Overseas, Wal-Mart lacks the scale to squeeze local suppliers on price as it does in the U.S. It also faces nimble competitors. And it has struggled to duplicate its bedrock strategy of constant bargains. But Wal-Mart has learned over the years from its missteps, discovering that it needs to adapt to local ways and that patience pays off. In Mexico, Canada and Japan, it’s won shoppers over time. In Chile, it launched a corporate culture campaign and worked closely with suppliers to coax them into its way of doing business. “Wal-Mart,” says Bryan Roberts of the London retail consultancy TCC Global, “is a very determined organization.” In the unruly Chinese market, some competitors cut corners, mislabeling products or even selling tainted foods. The risks have made Chinese consumers unusually wary. Sean Clarke, CEO of Wal-Mart China, based in Shenzhen, previously worked in Britain, Japan, Germany, and Canada. China, he says, “is easily the most challenging market to operate … There is a huge level of distrust.” Wal-Mart had a difficult time promoting “everyday low prices” – promising the lowest prices on a basket of goods every time consumers shop. Some rivals poached the “everyday low price” message, confusing customers. Wal-Mart scrambled to find the right slogan. In 2012, it introduced “Worry Free” – implying quality and reassuring shoppers who worry that deals will expire before they get to the store. The company’s message: Efficiency and good management, not cutting corners, make everyday low prices possible. The message has sometimes been muddled. When Wal-Mart came to China, it was slow to tailor its offerings to local tastes. Realizing its mistake, Wal-Mart gave local managers more leeway to run their businesses. But that approach backfired, leading to a series of food-safety violations. In one particularly embarrassing episode, Wal-Mart had to recall donkey meat – a delicacy in China – after DNA testing showed it contained traces of fox meat. In response, Wal-Mart slashed nearly two-thirds of its 20,000 suppliers. Now, Wal-Mart knows exactly where each product comes from. Wal-Mart also took back some of the responsibilities from local managers and increased its investment in food safety. It introduced mobile testing labs that check for pesticides on vegetables and fruit and employed handheld devices to check temperatures of meat products. In America, Wal-Mart has the clout – 25 percent of the U.S. grocery business- to force suppliers to do things the Wal-Mart way. That means cutting costs to the bone. In return, the suppliers enjoy steady demand from Wal-Mart, so they don’t have to spend so much on advertising or worry about paying extra costs to staff their factories to meet unexpected peaks in demand. In China, things are tougher. Wal-Mart accounts for just 2.3 percent of the grocery market. Ninety-five percent of all products Wal-Mart sells in China are supplied by local companies. The Chinese supply chain is also notoriously inefficient. For years, Wal-Mart and other foreign companies didn’t deal directly with their suppliers, working mostly instead through a labyrinth of middlemen. Three years ago, Wal-Mart decided to cut out the middlemen and route as many goods as possible through 20 of its own distribution centers. By eliminating the go-betweens, Wal-Mart could negotiate directly with suppliers and knock down costs – often by 10 percent or more. The change also gives Wal-Mart more control over the quality of the food being sent to its stores and the efficiency with which it gets to them. Before the switch, only about 75 percent of orders would actually reach Wal-Mart stores; now 95 percent do. Wal-Mart landed in China in 1996, a year behind Carrefour, opening two stores in Shenzhen- a Wal-Mart supercenter and a Sam’s Club. They were the first foreign retailers to offer the big-box shopping experience, which offers everything from clothing to food. After investing in a Taiwanese-owned retail chain in 2007, Wal-Mart became China’s biggest super-sized store chain and expanded its lead for the next two years. But local and regional competitors quickly closed the gap, sometimes undercutting Wal-Mart prices because they have closer ties to local suppliers and can negotiate better deals. Wal-Mart insists its market share for the big-store sector has increased over the past three years. But Euromonitor says Wal-Mart’s market share has fallen to 9.6 percent (No. 3 in the market) after peaking at 11.6 percent in 2009. Wal-Mart last year announced plans to add 115 stores in China by 2017, bringing the store count to 530. It’s concentrating in markets where it’s already established, including its stronghold in the south. And it has given up on about 30 lackluster stores. Meanwhile, Wal-Mart faces another challenge in China, and it is not from other big box stores. Across the globe, shoppers are increasingly buying online or at small stores. But in China, that trend is more dramatic. It has already overtaken the U.S. as the world’s biggest online marketplace.