Business Desk :
The government needs to take further steps to expand the tax net as it must for increasing tax-GDP ratio, experts said.
For certain types of companies, conditional reduction of tax rate, field of tax deducted at source and proposed rate change are good initiatives.
The introduction of a 12 per cent tax rate for other general industries exporting goods and services and 10 per cent for the green industry will encourage diversification of exports of goods and services.
Experts made these opinions at webinar ‘Salient Features of Finance Bill 2022-2023 organized by the Institute of Chartered Accountants of Bangladesh (ICAB) on Thursday.
Dr Abdul Mannan Shikder, Member (Customs Audit, Modernization &; International Trade) and Md Mahmudur Rahman, Member (Taxes Legal & Enforcement), National Board of Revenue( NBR) were the panel speakers.
Md Shahadat Hossain, President of ICAB delivered the address of welcome while Md Humayun Kabir, Member Council and Past President of ICAB, moderated the session.
MBM Lutful Hadee FCA, Council Member of ICAB, and Proprietor, Hadee Lutful & Co., Chartered Accountants and Snehasish Barua FCA, Partner, Snehasish Mahmud & Co., Chartered Accountants, jointly presented the keynote paper.
ICAB President Md. Shahadat Hossain FCA said, Bangladesh is targeting an average inflation rate of 5.6 per cent in the coming fiscal year; which is challenging but encouraging too as it is not only depending on the fiscal policy or monetary policy but also depending on few external elements and influences like rising oil prices, depreciation of the taka against the US dollar, the disruption of the global supply chain and the Russia-Ukraine crisis.
Keynote presenter Snehasish Barua said, tax rate 20 per cent has been proposed for listed entities with more than 10 percent paid up capital through IPO, which is 22.5 percent in current fiscal year.
“The companies can avail the rate upon condition that all investment and expenditure in excess of 12 lakh should be made through a banking channel. But the companies below 10 per cent paid up capital, the proposed rate is 22.5 per cent on condition that all receipts should be made through a banking channel,” he said.
On the same conditions for other than public companies tax rate is 27.5 per cent reduced from 30 per cent and one person company tax rate 22.5 per cent reduced from 25 per cent in the current fiscal year, have been proposed.
He said 10 per cent uniform tax rate has been proposed for all export oriented companies; RMG and other than RGM up to 30 June 2028. At the same time to motivate backward industries of RMG sector, on a few conditions the tax rate on business income for textile industries has been reduced to 15 per cent for the period of June 30, 2025.
Personal investment tax rebate is made 20 per cent of individual income fell under tax slab and that the middle income people will not get proper benefit from it, he opined.
For all types of exports, tax rate collection is increased by 1per cent which is unfavorable for exporters and will reduce export earnings, Barua said adding, the TDS rates are raised in areas of minimum tax, hence the reduction in corporate tax rates will have less impact.
