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The country's apex trade body has demanded a 'priority investment scheme' without penalty, prejudice and legal barrier in all productive sectors such as real estate and capital market for next five years.
It also proposed a reduction of corporate tax to 25 per cent over the next three years.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) made the proposals to tackle the economic downturn due to COVID-19 pandemic, according to a budget abstract published in the website of the FBCCI on Tuesday.
Earlier, the FBCCI had also placed its budget proposals of its members and associations to the National Board of Revenue (NBR).
The FBCCI demanded rationalisation of source tax for exporters, upward adjustment of tax-free ceiling for individual taxpayers, reduction of advance income tax (AIT) to 3.0 per cent from 5.0 per cent.
It also proposed cutting the VAT rate to 10 per cent from 15 per cent for the businesses that are eligible for claiming rebate.
It proposed to consider offering moratorium, discount or exemption from payment of income tax and VAT for small and medium enterprises (SMEs), particularly agriculture, retails, women entrepreneurs, restaurants, domestic fashion industry, light engineering, services sectors, hospitality, tourism and logistics for next one year.