Income tax bill business-friendly

The proposed Income Tax Bill 2023 is investment and business friendly in many ways, according to the Institute of Chartered Accountants of Bangladesh (ICAB).

"It introduced many new areas of admissible expenses for tax determination apart from widening the cap on expense limit," said Md Moniruzzaman, president of ICAB.

He yesterday made this remark while speaking at a webinar on the "Draft Income Tax Act 2023 and Salient Features of Finance Bill 2023-2024".

Moniruzzaman said the measure to implement automation in the appeal, tribunal, return filing and assessment handling processes would reduce the arbitrary powers of tax officials.

Other changes were also included in the proposed income tax act, including the imposition of an environment surcharge.

"The constant current or kilowatt-based environmental surcharges on multiple vehicles are expected to protect our environment and reduce hectic traffic congestion," he added.

And to promote local manufacturing of import substitutes and reduce the related tax burden, VAT exemption in excess of 5 per cent at the production stage of optical fibre cable is a good measure.

The ICAB president went on to say the government needs to be pragmatic in addressing certain challenges, such as restoring macroeconomic stability, revenue mobilisation, financing the budget deficit and protecting social spending.

"If the government fails to address them properly, it may destabilise the macroeconomy," he said.

Moniruzzaman believes that despite the existing challenges, this "timely budget" can be implemented.

The government needs to take further steps to expand the existing tax net while implementation of the document verification system will help achieve the targeted revenue, he said.

However, Nasiruddin Ahmed, former chairman of the National Board of Revenue (NBR) criticised the move to increase the net wealth surcharge to Tk 4 crore from Tk 3 crore.

"Are we trying to make rich people richer through this new rule?" Ahmed said.

He also urged for reducing the tax benefits extended to garment makers seeing as it is not sustainable for the government to provide such facilities for long.

Apurba Kanti Das, ex-member (income tax) of the NBR, said the government formulated the income tax bill in a way that should make it easily understandable for all.

Md Humayun Kabir, former president of ICAB, MBM Lutful Hadee, council member, Md Farid Uddin, ex-member (customs and VAT) of NBR, and Snehasish Barua, partner of Snehasish Mahmud & Co. Chartered Accountants, also spoke at the event.