Tax should be collected in such way so that business is not hampered, said Dr. Mashiur Rahman, adding that the NBR lack analytical capacity which should be improved.
Mashiur said coordination is needed among law makers, enforcers and adherents to implement a law. Otherwise, it is impossible to reach the goal. Besides, the law should be more specific and target oriented. And all concerned people should understand the law as well.
He was speakers at a dialogue on titled, “Income Tax Law 2022” organized by the Economic Reporters’ Forum (ERF) and Business Initiative Leading Development (BUILD) at ERF Auditorium in the capital.
ERF President Sharmeen Rinvy gave welcome speech and its General Secretary S M Rashidul Islam moderated the function while Adviser for Economic Affairs to the Prime Minister of Bangladesh Dr. Mashiur Rahman was present there as the Chief Guest.
Presenting key-note papers at the event, Founding Partner of Snehasish Mahmud & Co Snehasish Barua proposed that an authentic English version be published alongside along with mapping with the ITO, 1984. Existing benefits for individual tax payers have been curtailed in terms of investment tax credit specially taxing capital gain on sale of shares of listed company and bar on purchase of shares and government securities.
Barua emphasized on the ambiguities surrounding admissible and non-admissible business expenses, rationalization of tax deduction at source towards optimizing impact of minimum tax.
Additionally, to promote the SME sector, it was proposed to introduce definition of SME based on which new rate will be proposed during Finance Act. He also pointed out the contradiction in set-off of business loss with other income
“Introduction of payment of entire salary and limiting payment of raw material through banking channel and also mandatory requirement of ETIN will impose tax burden on the company. Exporters other than garments should enjoy the existing tax benefit and service providers should also be included in that list,” he added.
Chairman of Policy Exchange of Bangladesh Dr. M Masrur Reaz said the aim of tax act should become for enhancing economic capacity and assisting its growth.
“But, we don’t see some things like this for encouraging in the draft act. Long term finance is needed to assist the strategy of the next economy of the country. Though it is limited in the act,” he added.
Dr Masrur said digital economy is Bangladesh’s future. So, the issue of digitization should be including in the act for the sake of revenue mobilization.
The economist suggested increasing digital activities to collect fair taxes and ensuring systemic transparent for enhancing competitive capacity.
BUILD Chairperson Abul Kasem Khan said Bangladesh is now in transforming level. The country has immense challenges and possibility in future. So, the act is very important.
“We have to increase competitive capacity for tackling challenges. There is fewer export oriented products in the country. It is a weak point. So, we have to increase capacity through tax law, export and import policies,” he added.
Abul Kasem said people need economic freedom. The trend of TAX evasion will increase if tax rate is high. So, the government should decrease tax rate to widen tax net in the country.
President of Dhaka Chamber of Commerce & Industry (DCCI) Rizwan Rahman said businesses feel proud to pay taxes. So, they should be informed before forming any financial policy.
“Automation should be ensured at all places to stop irregularities and corruption in the country,” he also said.