Widening the tax net to improve the tax-to-GDP ratio: ICAB

The President of the Institute of Chartered Accountants of Bangladesh, Md Shahadat Hossain, said that the widening of the tax net is very much needed to improve the tax-to-GDP ratio and that the government should take further measures to expand the net. tax.

He made the comments on June 9 in a press release on the draft national budget for the 2022-23 financial year.

Finance Minister AHM Mustafa Kamal proposed the national budget for FY23 in parliament on June 9.

Shahadat said the tax reform could also help improve the tax-to-GDP ratio and increase revenue collection.

The establishment of Document Verification System (DVS) to increase government revenue collection was appreciated in the budget speech.

Despite the post-pandemic situation, the Russian-Ukrainian war and other global uncertainties, the government has risen to the challenge of implementing a development budget of Tk 2.46 lakh crore, which is a very encouraging step to go. forward to a developing country, he said.

Additional allocation for the infrastructure sector is a commendable step taken by the government, Shahadat said.

He also praised the government for the conditional reduction of tax rates for certain types of businesses, the modification of rates and withholding tax zones, the introduction of a 12% tax rate for all other general industries exporting goods and services and 10% for green industries. .

Shahadat also welcomed the change in the definitions of merger and research and development, the amortization of pre-start-up expenses and separate provisions for start-up companies, saying the initiatives were business-friendly decisions.

He also said that despite significant inflationary pressures, the personal tax exemption limit remained unchanged.

Imposing a capital gains tax on investments in government securities would increase the tax burden on taxpayers, he said.

Sallie R. Loera