will have to invest in private investment in the next fiscal year 2019-20. Therefore, tax benefits will be given to private investors. In addition, education, health should be allocated for development of human resources. The overall budget initiative should be such that it reduces discrimination. Besides, the recommendation for further tax exemption in information technology as a sector of future prospects has been recommended.
Speakers made the recommendations at the round table of Thursday, organized by the Institute of Chartered Accountants of Bangladesh (ICAB) on Thursday. The headline ‘Round Table Conference’ was titled ‘How to Make National Budget 2019-20’ National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan was the chief guest. Presided over by ICAB President A F Nesaruddin.
NBR chairman Mosharraf Hossain Bhuiyan said, this year the demand for corporate tax reduction has been raised. Corporate tax reduction is a complex task. Revenue loss due to corporate tax reduction must be ensured from other sources. In any way, the revenue collection can not be reduced. He further said, the traders demand that the new VAT-based contracted VAT rate is based on consensus with the traders. To make the consensus of business in all matters, I can not earn revenues. Everyone wants to pay VAT at 5 percent.
Referring to the increase in direct tax collection, the chairman of the NBR said, “During the election, I want those who will choose, even the candidates of the Union Parishad will have to submit a copy of the income tax statement. But for political reasons it could not be done. It will have to try. Many of them do not have tax identification numbers (TIN).
Regarding corruption, the NBR chairman said, ‘corruption creates social instability. If people’s income increases with development, corruption will also decrease, then corruption will be reduced. I myself also guided NBR officials in this regard. It’s working. ‘
Former secretary and former chairman of the Bangladesh Securities and Exchange Commission (BSEC) Faruk Ahmed Siddiqui believes that the poor and poor discrimination in the country has increased alarmingly. If he does not reduce the discrimination, he believes that social stability can be threatened. So he advised to focus on this issue in the budget.
According to Faruque Ahmed Siddiqui, if the private investment increases, the stock market will improve. Banks will not be able to meet that demand once the demand for individual sector increases. As a result, various organizations will be in the stock market as alternative funding sources. Now it is easy to get money from the bank, so no company wants to take money from the stock market waiting for one and a half years.
Rasheda K. Chowdhury, advisor to former caretaker government, recommended increasing the investment in the education sector, saying, “Good education results when investing in education, our cadet college.” If he does not increase investment in education and health, he thinks that discrimination will not be reduced.
ICAB President AF Nesaruddin said, one of the biggest challenges to taxpayers and income tax increases is the challenge. The people of the district and upazila level will be brought under the tax. He said, there is panic among people of the country with tax administration. To overcome this fear, the administration needs to increase transparency and modernization of tax administration.
Fahmida Khatun, executive director of the Center for Policy Dialogue (CPD), a private research organization, believes that consumption of more than 8 percent of GDP is the main source of consumption. It is not desirable as a rising economy. Investment in such an economy will increase, that is the expectation. But private investment is not unpleasant even after government investment increases. Employment will increase if individual investment is increased. At present, the unemployment rate among youth is 11 percent. If the person does not raise the investment, he thinks the employment of young people is difficult. Apart from this, Fahmida Khatun recommended some tax-free income limit for taxpayers.
Dhaka Chamber’s former vice-president Kamrul Islam said, when the expatriates returned to India, they were given tax-free benefits for five years. A large number of Indian expatriates came back to this country. Most of them were doctors, engineers and businessmen. In Bangladesh, such opportunities can be given.
Bangladesh Merchant Bankers Association (BMBA) President Nasir Uddin Chowdhury has proposed to reduce corporate tax on the listed companies. He said that companies will be encouraged to come to the stock exchange if the gap between companies listed in the stock exchanges and companies not listed. He further said that the BSEC licenses the merchant bank. But when the taxation is determined, it is considered as a bank. So he suggested to reduce the merchant bank’s taxation. In addition, he proposed to finalize the tax on dividends from the share market with 10 percent, he said. He believes that the investment will increase.
ICANN member and chairman of Devo Tech, Raihan Shamsi said that NBR will not only emphasize revenue collection; We also have to work as a business-friendly organization. Young people are leading the digital technology business. He suggested to give tax free of 5 to 7 years for them.
Mushfiqur Rahman, vice-president, Bangladesh Association of Software and Information Services (BASIS) said, “Digitalization should make trading transactions more easily in the digital system.” It will get revenue of Tk 300-400 crores. Besides, budget allocation for the development of IT sector should be increased.
According to market demand, ICAB council member Kamrul Abedin has recommended increasing the attention of human resources. He said, a huge number of jobs are being created in the IT sector. The government should invest in information technology education as per market demand.
According to Snehashish Barua, another council member of the organization, if the annual income exceeds certain limit, then the tax system will be able to get tax returns and tax payments in the online system. India also succeeded in implementing such a system. There should also be a five-year plan for corporate taxation. This allows the investors to plan themselves accordingly.
First round of associate editor of the Daily Abdul Kaiyum delivered welcome speech at the round table. The program was moderated by ICAB Council member Humayun Kabir.
FBCCI president Shafiul Islam Mohiuddin was supposed to be present at the event. However, presenting the statement to him for not being present, ICAB council member Humayun Kabir presented the statement. In the speech, the FBCCI President stressed on the new law to bring the views of traders to include products at a reduced VAT rate.
ICAB vice president said more on the occasion. Selim Uddin, council member Shahadat Hossain, Secretary Muhammad Imrul Kayes and others.