ICMAB recommended a comprehensive, integrated and end to end digitization process

Staff Reporter, Dhaka : The Institute of Cost and Management Accountants of Bangladesh (ICMAB) organized a Pre-Budget Discussion on National Budget 2023-24 at 3:30 p.m. on April 4, 2023 (Tuesday) at its Ruhul Quddus Auditorium, Nilkhet, Dhaka.

Sheikh Mohammad Salim Ullah, Secretary, Financial Institutions Division, Ministry of Finance, Government of the People’s Republic of Bangladesh graced the program as the Chief Guest.

Mr. Ranjan Kumar Bhowmik FCMA, Former Member (Tax), National Board of Revenue presented a paper on “Income Tax Proposal” while Mr. Md. Kausar Alam FCMA, Secretary, ICMAB presented a paper on “Customs and VAT Proposal” in the program.

Dr. Sayema Haque Bidisha, Professor, Department of Economics, Faculty of Social Sciences, University of Dhaka, T. I. M. Nurul Kabir, Executive Director, Foreign Investors’ Chamber of Commerce & Industry and Mr. Shamsul Huq Zahid, Editor, The Financial Express (FE) attended the program as Discussants.

Mr. Md. Abdur Rahman Khan FCMA, President, ICMAB delivered his speech at the event. Mr. Khan said the Vision of ICMAB is fully aligned with the vision of the father of the Nation and her competent daughter HPM Sheikh Hasina to help Bangladesh become an industrialized, developed and smart nation.

President ICMAB informed that like previous year, ICMAB has submitted a set of 62 proposals to the National Board of Revenue on February 16, 2023. Many of its proposals were for increasing the tax revenue. ICMAB also suggested that audit of tax returns should be selected on the basis of automated system based on revenue risk analysis for ensuring transparency and eliminating unnecessary harassment of the compliant taxpayers.

ICMAB also emphasized on restoring basic philosophy of Income Tax by eliminating the existing discriminatory laws and regulations that significantly changed the basic characteristics of Direct Taxation system in Bangladesh. ICMAB suggested to allow the minimum tax paid by the compliant taxpayers during the loss-making period to be allowed as a tax credit against the tax payable in the profit-making years in future.

Mr. Ranjan Kumar Bhowmik FCMA, and Mr. Md. Kausar Alam FCMA, presented well-articulated papers and suggested amendments of Income Tax Law and VAT Law for improving tax compliance, expansion of tax net and for attracting local and foreign investments for the overall growth of our economy. Many of the proposals were related to increase of tax revenue.

Dr. Sayema Haque Bidisha, Professor, Department of Economics, University of Dhaka, T. I. M. Nurul Kabir, Executive Director, Foreign Investors’ Chamber of Commerce & Industry and Mr. Shamsul Huq Zahid, Editor, The Financial Express (FE) gave emphasis on digitalization and proper monitoring and evaluation to increase the tax net. They said that the worldwide economic crisis created because of twin effect of covid and Ukraine- Russian war may affect us badly. So Bangladesh has to tackle the crisis prudently in combatting the challenge of containing high inflation and creation of new employment. They also raised concern that our Tax-GDP ratio is very low comparing to other developing countries of the world which warrants urgent attention of the policy makers. The proper management of the exchange rate is also another crucial area of concern, they added.

Chief Guest Sheikh Mohammad Salim Ullah, Secretary, Financial Institutions Division, Ministry of Finance, Government of the People’s Republic of Bangladesh in his speech mentioned that budget expenditure size is determined first in government budget preparation process, then financing is addressed taking multi-faceted macro-economic, fiscal and monetary conditions into consideration. The policy makers have to consider cross-cutting issues such as macro-economic factors, fiscal policy and monetary policy in determining the budget size. Often the policy makers are required to strike balance between increasing Tax-GDP ratio vs. attracting foreign and local investment for creation of employment by offering tax exemptions. Nevertheless, there is still ample scope to increase revenue collection by improving efficiency of tax administration by digitizing the entire business process of NBR through which efficiency and integrity of revenue officials will be improved significantly, emphasized the chief guest.

All the speakers unanimously recommended a comprehensive, integrated and end to end digitization process in NBR for overall tax management so that the hassles faced by the tax payers are minimized.

Mr. Mohammad Salim FCMA, Past President & Chairman, Seminar and Conference Committee delivered the welcome statement and Mr. Md. Akhtaruzzaman FCMA, Treasurer, ICMAB offered the vote of thanks. Mr. Arif Khan, Council Member, Past President, ICMAB conducted the discussion session with his natural eloquence. The discussion program was vibrant and interactive with the active participation of the discussants. A good number of ICMA members from home and abroad attended the program in person and through virtual platform.