Despite the establishment of branch offices and liaison offices of foreign institutions in Bangladesh, proper taxes are not being collected on their income, which results in decreasing the revenue of the government. Currently the National Board of Revenue (NBR) is satisfied with not only the source tax collection, but the Institute of Chartered Accountants of Bangladesh (ICAB) thinks that the government will be able to collect more huge revenue if they collect direct taxes from foreign companies. The ICAB expressed concern over the issue in their pre-budget discussions, saying that the activities of foreign companies are creating tax evasion opportunities, which the government needs to take more powerful steps to prevent.
On this day, NBR Chairman Abdur Rahman Khan presided over the pre-budget discussion of the fiscal year 2021-27. Representatives of the Institute of Chartered Secretaries of Bangladesh (ICSB), the Institute of Cost and Management Accountants of Bangladesh (ICMAB), Bangladesh Tax Layers Association and Bangladesh VAT Professional Forum presented the budget proposal in the first round. The second round of budget proposals was presented by Bangladesh Reconditiones Importers and Dealers Association (Barvida), Real Estate and Housing Association of Bangladesh (Rehab), Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) (BCMEA).
Snehashish Barua presented the budget proposal on behalf of the ICAB. According to the law, according to the law, any of the companies earning in Bangladesh have to pay taxes, but now only the source tax is being collected from foreign companies, which is not enough. He said it is not possible to bring Google or Amazon into a digital service; Because, they may impose the opposite tariff. In the case of large projects, only taxes are being collected at source, but they should pay taxes on their income. This is not a legal problem, but a problem of implementation. He also mentioned that some government -to -government agreements were not caught in Bangladesh through the agreement.
NBR Chairman Abdur Rahman Khan said they were trying to solve the problem. The content of the government project should be fixed and the issues within the agreement must be clearly mentioned. If the project contracts do not have vetting, tax evasion opportunities are created, especially when the payment is out of the country and the tax promotion is imposed on the NTT. He said that big projects, such as one thousand or one and a half thousand crore projects, but the business is being imposed on the government of the country, which should be closed.
The content of the government project should be fixed and the issues within the agreement must be clearly mentioned. If the project contracts do not have vetting, the opportunity for tax evasion is created Abdur Rahman Khan Chairman, NBR
The ICAB has said that the land mouzas are not updated due to the lack of updating the land, which is increasing the government, which is damaging the government's revenue. Snehashish Barua said that the actual value of the land is not reflected in the government record because the price of Mouza is lower than the market price, so taxpayers do not reveal the real value of their wealth. Updating the price of the mouza will include the actual price in the government's database, which will help increase revenue.
The ICAB proposal is updated to update the market value of the land and create a large database, which will help reduce unprecedented resources. Snehashish Barua said that if Mouza is not updated, sellers do not reveal the real value of the assets by showing low prices, which helps reduce revenue and increase the informal economy. Although the NBR chairman agreed with the proposal, he expressed concern over the increase in the cost of registration of the land.
The chairman of the NBR also said that strict action needs to be taken against the tax evasion, especially to ensure proper tax collection from foreign companies. He noted that if the terms and conditions of the large project agreement are not properly determined, tax evasion opportunities arise, which the NBR wants to take active steps to stop.
20% supplementary duty on the microbus or hiis vehicle of 4-5 seats should be withdrawn. This will reduce the use of nachiman and lagoon, increase the use of microbus, increase revenue. Abdul Haque President, Barvida
In the pre-budget discussion, Barvida President Abdul Haque said that 20% supplementary duty on the microbus or hiis vehicle of the 5-7 seats should be withdrawn. This will reduce the use of nachiman and lagoon, increase the use of microbus, increase revenue and ensure safe transportation. In addition, people in the countryside will also be able to use them by reducing the tariff and the price of microbus, which will change the transportation system.
In addition, the rehab has proposed to be 1 to 5% in the rehab construction sector; Because, since 2022, the sector has been in the downturn. They have proposed to reduce the stamp tariff by 5.5 to 5% and the local government fee by 3 to 2%. In addition, they think the sector will be revived if the new construction law is enacted.
The ICMAB has proposed to collect advance income tax in the club elections in their budget proposal. According to them, if you pay advance income tax to participate in the registered clubs in the Society Registration Act, it will be possible to cover the taxes of the people who are lacking in income tax documents, thus increasing revenue collection.
The NBR chairman said of tax exemption, “No one is bankrupt with taxes.” He said that the government would not have to make any new tax exemption plans and said the government's job would be to refine the ongoing tax practices and gradually lift the tax exemption.
In addition, Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) president Munnu Ceramic Industries Limited Vice Chairman Mainul Islam has proposed to withdraw 5 percent supplementary tariff on tiles and 5 percent on sanitary. According to him, it will reduce the price and increase the use of the product.
