DHAKA, March 24, 2019 (BSS) – The Institute of Chartered Accountants of Bangladesh (ICAB) today placed a 10-point recommendation before the government for incorporating those in the next budget for FY20 including reduction of the corporate tax rate by two percent for various sectors.
The ICAB leaders placed the recommendations at a press conference held at the auditorium of ICAB in city’s Kawran Bazar area.
ICAB President AF Nesaruddin, Secretary Maj Gen (Retd) Muhammad Imrul Quayes, former ICAB President Humayun Kabir, vice president Md Moniruzzaman, ICAB members Snehasish Barua and Rakesh Saha spoke, among others, at the press conference.
Highlighting the rationality of the demand for reducing the corporate tax rate, the ICAB leaders said that the corporate tax rate in Bangladesh is the highest among other countries in this region and reduction of the corporate tax rate by 2 percent would mobilize more revenue collection and generate newer employments.
Urging the tax administration to bring more capable people under the tax net by not imposing additional taxes over the existing taxpayers, they also demanded for initiating the 2nd tier of tax rate for individual taxpayers from 5 percent and limiting the highest tax rate at 25 percent.
They also placed a demand for providing direct tax exemption on income, conducting fruitful survey to widen the tax net and boost the tax-GDP ratio, boosting communication with all the ETIN holders to increase submission of tax files, raising the tax ceiling of the small businessmen to Taka 50 lakh from the existing 36 lakh to encourage the new entrepreneurs.
Regarding the VAT related proposals, the ICAB leaders demanded for incorporating a provision in the VAT Act of 2012 so that the chartered accountants could take part in the hearing as authorized representatives of the taxpayers.
Besides, they also demanded for raising the ceiling of VAT enlistment for the business enterprises to Taka 48 lakh from Taka 36 lakh as well as raising the ceiling of turnover tax to Taka 1.80 crore from Taka 1.50 crore and thus keeping the rate at 3 percent.