ZCZC
BSS-21
ICMAB-BUDGET-PRESS CONFERENCE
Fighting COVID-19 should be topmost priority of govt; ICMAB
DHAKA, June 7, 2021 (BSS) – Noting that fighting COVID-19 should be the topmost priority of the government in the coming days, the Institute of Charted Accountants of Bangladesh (ICMAB) today said 80 percent of the country’s population should be brought under vaccination to revive the economy in the post pandemic era.
“During the COVID-19 period, neither there will be significant investment nor employment generation. Therefore, to revive the economy in the post pandemic era, 80% of the total population will have to be brought under vaccination at any cost. Addressing Corona Virus should be the topmost priority,” said the ICMAB.
The ICMAB leaders said this at a press conference on “National Budget 2021-2022” held at ICMAB Ruhul Quddus Auditorium in the capital’s Nilkhet area.
The programme was moderated by the Vice-President of ICMAB, Md. Mamunur Rashid, while ICMAB President Abu Bakar Siddique presided over the meeting. Vice-President (2nd) Md. Munirul Islam, Secretary Kazi Muhammad Ziauddin and Treasurer A.K.M. Kamruzzaman of the Institute were present in the Press Conference. A well-organized Paper on the proposed national budget for FY22 was presented by fellow member of ICMAB Md. Shafiqul Alam, said a press release.
The ICMAB said due to the movement in restrictions and lockdowns for the COVID-19, different organizations and businesses remained closed. “As a result, people have gone under poverty line while budget allocation in Social Security Sector is low. So, more allocation in this sector should be given preference,” the release added.
The Institute said Finance Minister AHM Mustafa Kamal giving emphasis on health sector to combat the pandemic, protecting the poor and businesses and speeding up economic recovery set the theme “Bangladesh Towards a Resilient Future Protecting Lives and Livelihood” in the Taka 6,03,681 crore proposed budget which was placed before Jatiya Sangsad on June 3.
The ICMAB leaders said that they think that in the present VAT Law and Income Tax Law, there are some inconsistencies. “These should be addressed.”
The Institute said it is quite logical as one-person company tax rate was reduced to 25 percent.
It said in the proposed budget, tax rate for listed companies in the share market reduced to 22.5% from 25% while non listed companies’ tax rate reduced to 30% from 32.5%, which is quite praiseworthy.
“But, in the new proposal, source tax increased from 5% to 7% on the delivery side, which ICMAB thinks will ultimately increase the tax rate from the previous year. For business-friendly tax implementation, justification is very much required on this side,” the leaders said.
The ICMAB said since the majority of the customers of MFS companies are low-income people, so this tax burden will be a bar to the financial inclusion of the lower income people which will negatively impact the overall digitization.
“Therefore, ICMAB thinks that in this prolonged pandemic situation to attract the people at MFS services, the proposal of increase of tax in this sector should be withdrawn, so that a cashless society is established,” added the ICMAB.
In the proposed budget, tax rebate has been proposed for E-learning, Cloud Service, System Integrations, Mobile Application Development Services, E-Book Publications, IT Freelancing Distributors and these companies will get the Tax rebate for up to 2024. “As a result, digital services will be easy and cheap and will easily reach to all class of people including the poor. So, ICMAB thinks that the dream of establishing Digital Bangladesh will come true.”
The ICMAB said proposals have been made that in order to establish “Made in Bangladesh” Brand, Auto mobile three-wheeler and four-wheeler production companies will get rebate for 10-20 years under certain conditions, said ICMAB.
Besides some home appliances and kitchen appliances products and light engineering industry products producing companies will get 10 years rebate under certain conditions in the proposed budget. “As a result, home grown and import substitution industry will be growing.”
The ICMAB also welcomed the announcement to make the health services available outside cities. The establishment of 250-bed general hospitals and 200-bed specialized hospitals in those areas will get 10 years tax rebate under certain conditions.
Besides, the Institute thinks that, if Cost of Goods Sold statement is audited by the Cost and Management Accountants, then cost efficiency will be increased and expenses will be reduced. “As a result, it will bring significant impact on the overall economy of Bangladesh,” the ICMAB added.
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