New ‘Income Tax Act-2022’ should be taxpayers and business friendly: Speakers
Speakers at a dialogue on Thursday urged the National Board of Revenue (NBR) to ensure that the new ‘Income Tax Act 2022’ becomes friendly to taxpayers and business, reports UNB.
NBR uploaded the draft of the proposed law on 27 October, 2021 and they are expecting to finalize it within 31 December 2021.
The speakers made the call at the discussion titled, “Income Tax Law 2022” organized by the Economic Reporters’ Forum (ERF) and Business Initiative Leading Development (BUILD) at ERF auditorium in the capital.
Adviser for economic affairs to the prime minister Mashiur Rahman took part in the discussion as the chief guest. ERF secretary SM Rashidul Islam moderated the programme.
Presenting key-note papers at the event, Founding Partner of Snehasish Mahmud & Co Snehasish Barua proposed that an authentic English version be published alongside mapping with the ITO, 1984. Existing benefits for individual taxpayers have been curtailed in terms of investment tax credit specially taxing capital gain on sale of shares of listed company and bar on purchase of shares and government securities.
Barua emphasized on the ambiguities surrounding admissible and non-admissible business expenses, rationalization of tax deduction at source towards optimizing impact of minimum tax.
Additionally, to promote the SME sector, it was proposed to introduce the definition of SME based on which new rate will be proposed during the Finance Act. He also pointed out the contradiction in set-off of business loss with other income
“Introduction of payment of entire salary and limiting payment of raw material through banking channels and also mandatory requirement of eTIN will impose tax burden on the company. Exporters other than garments should enjoy the existing tax benefit and service providers should also be included in that list,” he added.
Chairman of Policy Exchange of Bangladesh M Masrur Reaz said the aim of the tax act should be for enhancing economic capacity and assisting its growth.
“But, we don’t see some things like this for encouragement in the draft act. Long term finance is needed to assist the strategy of the next economy of the country. Though it is limited in the act,” he added.
Masrur said digital economy is Bangladesh’s future. So, the issue of digitization should be including in the act for the sake of revenue mobilization.
The economist suggested increasing digital activities to collect fair taxes and ensuring systemic transparency for enhancing competitive capacity.
BUILD Chairperson Abul Kasem Khan said Bangladesh is now at a transforming level. The country has immense challenges and possibilities in the future. So, the act is very important.
“We have to increase competitive capacity for tackling challenges. There are fewer export oriented products in the country. It is a weak point. So, we have to increase capacity through tax law, export and import policies. Local entrepreneurs should be provided benefits by the policies. The authorities concerned should discuss with businesses before forming any policy,” he added.
Abul Kasem said people need economic freedom. The trend of TAX evasion will increase if tax rate is high. So, the government should decrease the tax rate to widen the tax net in the country.
President of Dhaka Chamber of Commerce & Industry (DCCI) Rizwan Rahman said businesses feel proud to pay taxes. So, they should be informed before forming any financial policy. “Automation should be ensured at all places to stop irregularities and corruption in the country,” he also said.
President of Institute of Chartered Accountants of Bangladesh (ICAB) Mahmudul Hasan Khusru underscored on human resource development for the sake of the country’s economy.
The First Secretary of Income Tax at National Board of Revenue (NBR) Md. Shahidul Islam said Bangladesh is going forwards as the country’s people pay taxes. “We are providing tax holidays in 50 sectors for 10 years that create an impact on GDP. NBR is trying its best things for the sake of the country’s economic growth,” he also said, adding “Our laws are reviewed every year. So, don’t say that our laws are obsolete.”
Mashiur Rahman said coordination is needed among lawmakers, enforcers and adherents to implement a law. Otherwise, it is impossible to reach the goal. Besides, the law should be more specific and target oriented. And all concerned people should understand the law as well.
“NBR lacks analytical capacity. It should be improved. Besides, tax should be collected in such a way so that business is not hampered here,” he also said.
BUILD CEOFerdaus Ara Begum and ERF president Sharmeen Rinvy also spoke at the function.