Online Desk: Bangladesh Chamber of Industries (BCI) has demanded for creating a special fund to finance young entrepreneurs across the country in the upcoming national budget for next fiscal year 2024-25.

The leaders of the BCI, the lone chamber body industrial sector, placed the demand while holding a pre-budget meeting with Chairman of the National Board of Revenue (NBR) Abu Hena Md Rahmantul Munim on Wednesday.

The BCI delegation, led by its President Anwar-ul Alam Chowdhury (Parvez), placed a number of recommendations for the government to facilitate the industrial sector for capacity building of micro, cottage and small scale industries sector and encouraging young industrial entrepreneurs.

The recommendations include providing bonded-warehouse facilities to 2 to 3 sector-wise organizations to promote export-oriented enterprises consisting of small scale industries and women entrepreneurs and phasing out the existing cash incentives and subsidies on exports and instead introducing alternative incentives to promote export.

In regard to income tax, the BCI said that high tax rates discourage new investment.

It urged for setting a business-friendly and sustainable corporate tax rate to increase domestic and foreign investment.

The BCI observed that the corporate tax rate in Bangladesh is much higher than that of neighboring countries and proposed to introduce corporate tax at 25 percent for private limited companies and 20 percent for publicly traded companies.

“This will encourage businesses at the local level and also investment in the country which will play a supporting role”, it said, recommending a minimum 5 years tax holiday for micro, cottage and small scale industries and young industrial entrepreneurs.

The BCI proposed a source tax of 3 on import of industrial raw materials and raising the tax-free income limit to Tk 5 lakh for the individual.

It said that in view of inflation and cost of living, the current personal tax exemption limit and the existing income tax rate should be revised for the next fiscal year 2024-2025.

BCI leaders Abul Kalam Bhuiyan, Zia Hyder Mithu, MA Razzak Khan, Ruslan Nasir, Nazmul Anwar, Md Khair Mia and Md Mahfuzur Rahman, among others, were present in the meeting.