The Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday proposed the government set foreign cash inflow and outflow targets to ease the domestic exchange market volatility.
The targets should be fixed for one financial year (FY) also due to the uncertainties in the global market, and make sure a minimum amount of spending in foreign currencies, former president of ICAB Humayun Kabir told a post-budget press conference in the city.
The institute mostly appreciated the budgetary measures for FY24 and defended the proposed minimum income tax of Tk2,000 annually for the holders tax identification number (TIN).
Organized by the ICAB, its president Md Moniruzzaman termed the budget a time-befitting initiative ahead of the LDC graduation.
Despite the Russia-Ukraine war, higher inflation, rocketing commodity prices, dollar market volatility, slowdown in business, investment and employment, and other global uncertainties, he said the government's development budget of Tk277,000 crore is an encouraging step forward.
Moderating the event, former ICAB president Humayun Kabir said the TIN holders already are paying taxes in different names.
He said the minimum tax is nothing new as he referred to the Section 82 (C), making it clear that even if there is no profit in the business or if the tax is collected from additional sources, the law of minimum tax collection, non-payment of interest and penalty is in force.
Currently, there are many bank depositors who actually pay tax (deducted at source) but do not file returns.
Due to the requirement of filing returns (in lieu of e-tin) many are creating refunds, might require issuance of certificate to maintain their files, but this tax imposition would not be unethical for cost recovery.
He said the biggest argument is that the tax net and the number of returnees will increase, while the businesses and not the “theoretical intellectuals” would have to bear the responsibility of this tax.
In his welcome address, ICAB chief executive officer Subhashish Bose said the joint initiative of the National Board of Revenue (NBR) and ICAB to implement Document Verification System (DVS) would help achieve desired revenue.
The DVS would bring transparency and accountability in the financial sector, along with tax reform and improvement in tax-GDP ratio, while increasing revenue collection, he said.
Founding partner at Snehasish Mahmud & Co Snehasish Barua presented a synopsis of taxes and VAT collection targets and criterion of the government.
The ICAB also welcomed the proposed VAT rebate of more than 5% at the manufacturing stage of optical fiber cable to encourage production of import substitute products and reduce tax burden at the local production stage.
