The National Board of Revenue (NBR) is working earnestly on the implementation of the new drafted income tax law that is expected to come into force from the next fiscal year.
In line with this move, the NBR’s tax wing has recently formed two committees with a view to finalising and reviewing the drafted law, one for Bangla draft and another for English draft, officials said.
The proposed law will be mainly in Bangla with official and authentic English version. A seven-member committee, headed by NBR member Alamgir Hossain, would review the English draft by keeping alignment with the international best practices and compatibility with the country’s socio-economic environment, officials said. It will submit reports attaching reviews, and recommendations to include or exclude any provision to make the law compatible with the country’s socioeconomic context.
The committee will also look into, if any, provision remains in the drafted law inconsistent with the international best practices, NBR officials said.
It will detect the possible constrains of the draft’s new provisions and would pass recommendations to make a smooth implementation of the law, they said. The committee will collect information from field offices, aiming to make its recommendations more compatible.
Another committee, headed by income tax commissioner Meftah Uddin Khan, would assist the external legislative experts on finalising the Bangla draft of the law. The two drafting teams have almost completed the draft procedures. However, finalisation of the Bangla draft was delayed for not appointing the experts, officials said.
The NBR is now likely to appoint experts on legal drafts soon to finalise it, they said. The NBR is looking forward to finalising all procedures of the proposed income tax law within the shortest period and the committees have been formed to expedite the move, a tax wing official told Bangladesh post.
However, the new law will be finalised aligned with the existing income tax ordinance-1984, he said.
The revenue board, in 2010-11 fiscal, first took initiative to update the income tax ordinance and it also drafted Tax Code-2013 with the help of international finance corporation (IFC).
However, the revenue authority found it incompatible with the country’s socioeconomic condition and that is why it was abandoned.
Later, the NBR decided to frame the law in Bangla.
The finance minister in his budget speech for the current fiscal year (2018-2019) also expressed his hope that the government would be able to place the new income tax law at the beginning of next financial year the before parliament.
Business dimensions and international taxation issues, like merger and acquisition, transfer pricing, money laundering, profit shifting, money laundering, digitization of tax system would be addressed in the new law.
Besides, expansion of tax net and reduction of corporate tax rate would also be included in the new law.