Institute of Management Consultants Bangladesh (IMCB) urged the government to bring Value Added Taxes (VAT) down to 5% from 15% for local consultancy firms in the upcoming budget in order to help them flourish.
The leaders of IMCB stated their request while speaking at a press conference on the occasion of International Consultants Day 2018 in Dhaka on Friday.
“In Bangladesh, VAT on consulting services is 15%, which is much higher than in other countries,” IMCB Chairman M Zakir Hossain said, urging the National Board of Revenue (NBR) to bring it down to 5% for the sake of the emerging sector.
“A lack of fiscal policy support and enforcement of taxes on consulting practices is quite burdensome for providers of such services. We believe that if the government reduce the VAT, it will eventually increase the volume of revenue collection,” he added.
IMCB, a platform for consultancy service providers, also demanded the formulation of a legal framework in the management consulting profession in order to ensure quality service and make them accountable to clients.
"In absence of government support, the management consulting profession is not flourishing rapidly and as a result, a dependency on foreign consultants and experts persists among local organizations," said Zakir.
"On the other hand, if the government comes forward and promotes the sector with the required policy support, in the near future it could decrease the outflow of cash and increase remittances," he added.
A good number of Bangladeshi experts, including IMCB members, are working abroad in countries like Afghanistan, Cambodia, Laos, Vietnam, Myanmar, and several countries the African region, he adds.
IMCB is helping Bangladesh develop a large pool of mid-level managers in Bangladesh. This would also reduce dependency on foreign workers and create more scope for employment of business graduates, said leaders of the organisation.
IMCB president Md Zahidur Rahman and treasure Tafazzal Hussain were present at the event, among others.