Advanced income tax should be abolished

The advanced income tax (AIT) should be abolished as the National Board of Revenue's overall capacity to realise taxes has expanded, according to Planning Minister MA Mannan.

The cancellation of AIT is necessary because the overall capacity of the NBR has widened, the number of its workforce has increased, it has deployed equipment, and its use of computers has increased, he said.

"The AIT should not be deducted."

He said the refund does not take place later even if the tax paid in advance exceeds the tax liability, and many companies unsuccessfully try to get the refunds before surrendering it.

"This situation should not have been created at all. I think there is no need to keep it now," he said.

The minister made the remarks at a post-budget discussion, organised by the Institute of Cost and Management Accounts of Bangladesh (ICMAB), in the capital on Tuesday.

The business community has long opposed AIT.

Mannan said the economy is standing on three pillars: remittance, export and agriculture.

"We have already advanced in the agricultural sector and will advance in the two other fields as well," said Mannan, calling for increasing investments in rural areas.

Selim Raihan, a professor at the economics department in the University of Dhaka, said the government should focus on ensuring macro-economic stability and reforms.

"For proper management and earning more revenue, infrastructure development should be ensured. At this challenging period, we should not go for ambitious growth."

He urged the government to tackle inflation and manage the domestic market prudently.

Ranjan Kumar Bhowmik, a former member of the NBR, Md Musfiqur Rahman, a professor of the accounting and information systems department at the University of Dhaka, and Md Mashiur Rahaman, a joint commissioner of the revenue board, presented papers at the event.

Md Abdur Rahman Khan, president of the ICMAB, and Arif Khan, a former president, also spoke.