DCCI backs NBR withholding tax initiative, urges no harassment of compliant businesses

Leaders of the Dhaka Chamber of Commerce and Industry (DCCI) believe that the National Board of Revenue's (NBR) initiative to strengthen the deposit, monitoring and verification of withholding tax deductions under Section 147(2) of the Income Tax Act, 2023, will play a positive role in increasing overall revenue collection and expanding the tax net, provided it is properly implemented.

The DCCI leaders made the statement in a press release issued on Monday.

At the same time, they expressed concern that already-compliant businesses should not face undue harassment during the implementation of the law. They also urged the NBR to provide businesses that have not yet achieved full compliance with the necessary time and opportunity to secure their legitimate rights.

To meet the government's revenue collection target and expand the tax net, the leaders stressed the need for greater use of automation and digital technologies in overall revenue management, which they said would significantly reduce unnecessary suffering for the private sector.

The DCCI leadership believes that it is possible to achieve both higher revenue collection and a business-friendly environment. However, it said constructive dialogue with the NBR is essential, while the government and private sector must work together to bring all categories of businesses under a more disciplined tax management system.