MCCI urges NBR to cut property registration fees

The Metropolitan Chambers of Commerce and Industries (MCCI) believes a reduction in land and flat registration fees will reduce the creation of untaxed money and boost tax collection as well.

An MCCI delegation led by its President Nihad Kabir placed the recommendation at a pre-budget meeting with National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem at the NBR headquarters at Segunbagicha in Dhaka on Tuesday.

The chamber said at present the land registration fee is fixed based in different areas, but it is much lower than the actual price.

A part of legal earning of a person who sells or buys property turns into illegal as he or she shows the government-fixed registration rate, the MCCI said in their budget recommendations for the fiscal year 2021-22.

In this context, the MCCI recommends that the NBR reduce the registration fee through holding talks with the stakeholders.

“If it is done, the tax management system will be transparent and there will be no shortfall in taxes,” the MCCI president said.

Nihad Kabir also pointed out the corporate tax issue, which is now 32.5%. She said the effective tax rate goes up to 50% to 60% as businesses have to pay taxes for imports of materials and even on finished products.

“It discourages investments. So, the solution in this regard in the next budget is necessary,” she said.

About the value added tax, the MCCI said the provision of revision has been added to solve the VAT-related complexity by revoking the previous appeal process. But the outcome of the revision system is not business and investment-friendly, she said.

The MCCI president also said a competition is noticed among the tax officials as they are given incentives based on their tax collection performance.

The NBR chairman said that he would try to resolve the issues that MCCI raised at the meeting.