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Business Insider Bangladesh

Expand tax net and integrate digital system to enhance tax-GDP ratio: ICAB to NBR

UNB || BusinessInsider

Published: 09:15, 23 March 2023   Update: 09:30, 23 March 2023
Expand tax net and integrate digital system to enhance tax-GDP ratio: ICAB to NBR

Photo: Collected

The Institute of Chartered Accountants of Bangladesh (ICAB) on Wednesday urged to strengthen unified automation of the tax system, bring the foreign multinational companies under tax net and impose corporate tax on non-resident digital companies and service providers.

The ICAB president Md Moniruzzaman FCA told a press conference in the capital after handing over the budget proposal to the National Board of Revenue (NBR) on Wednesday.

The ICAB, a national professional accounting body, also urged the capacity building of the revenue board along with setting up LTU (Large Taxpayers Unit) supervision unit on divisional and regional basis to monitor the companies for tax evasion.

“Without strengthening NBR’s supervision ability and digitalisation of all the tax-related offices the revenue collection would not be increased,” Moniruzzaman pointed out.

The government determined the tax GDP growth to be 21.9 percent by 2041. To implement this the NBR set a target of additional tax collection of Tk2.34 lakh crore by 2026 to increase  the tax-GDP ratio from 7.8 percent to 9.5 percent.

The ICAB said  the NBR should set up annual  growth plan and increase the areas of tax collection along with stopping the scope of tax evasion.

ICAB president gave some proposals to increase tax collection, including digitalisation and integration of tax offices, raising the tax collection areas, justification in source tax realisation, and reducing the expenditure related to the realisation of VAT and other taxes.

The budget proposal also included introducing special bond facilities to accelerate the product variation for the entrepreneurs who are excluded from the existing bond facility.

The professional body proposed to build a central bond system connecting it to the Customs Asycuda System to stop harassing the businesses from customs duty drawback.

The ICAB has suggested NBR regularly update the tax-related information, SROs, circulars, and notification so that users and taxpayers can get the right information in a hassle-free way.

Snehasish Barua FCA gave a presentation at the press conference on the ICAB budget proposal.

MBM Lutful Hadee FCA, vice president ICAB, council members Md. Humayun Kabir FCA, NKA Mobin FCA, Mohammad Forkan Uddin FCA, Maria Howlader FCA, Shubhasis Bose, Chief Executive Officer of ICAB, Mahbub Ahmed Siddique FCA, Chief Operating Officer of ICAB, among others, were present at the press conference.

Monetary Policy Stance
Budget 2020-21