Speakers for digitization of NBR, reforms in VAT Act

Speakers at a webinar have stressed the need for digitizing the National Board of Revenue (NBR) as well as bringing necessary reforms in the VAT Act and in tax.

They also suggested for giving more incentives to women entrepreneurs and digital entrepreneurs, to small and medium enterprises, to health sectors, health insurance, employment generation, agriculture and education.

They said the government should reflect more prudence in resource allocation, the tax rates should be simplified in VAT Law and Income Tax Law while customs should be modernized.

The discussants came up with such views at a
Pre-Budget Discussion webinar on “National Budget 2021-2022” organized by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) held on Thursday evening.

Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister was present as the chief guest at the webinar, said a release.

Dr. Atiur Rahman, Bangabandhu Chair Professor, University of Dhaka & Former Governor, Bangladesh Bank, Mosharraf Hossain Bhuiyan, Ambassador of Bangladesh, Germany, Md Farid Uddin, Former Member, Customs and VAT, NBR and Former Chairman of NBR and Professor Dr. Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD) joined the Webinar as Discussants.

Ranjan Kumar Bhowmic, former Member (Tax Survey & Inspection), NBR and Kazi Muhammad Ziauddin, Additional Commissioner of Customs, NBR made presentations on the salient features of the national budget.

Md. Mamunur Rashid , Vice-President of ICMAB moderated the session.

ICMAB President Abu Bakar Siddique gave the inaugural speech in the webinar. A. K. M. Delwer Hussain, President, SAFA also shared his thoughts on the upcoming budget and Md. Jasim Uddin Akond, Vice-Chairman, Seminar and Conference Committee, ICMAB gave concluding speech.

The paper presenters said currently the company submits their annual returns along with Financial Statements certified by the Chartered Accountants Firms.

So, it becomes impossible to check Cost of Goods manufactured or Cost of goods sold or Cost of sales statements vertically and horizontally.

Therefore in the income Tax Act, section 35 (3) (C), “quantitative analysis of cost statement should be signed by the Cost and Management Accountant (CMA)” words to be added.

They said in the existing Law, there is no scope of Tax and VAT audit. By including this subject in the existing Law, VAT and Tax can be audited by the professional accountants (Chartered Accountant/Cost and Management Accountant).

Investment rebate in DPS (Deposit Pension Scheme) may be increased from Taka 60,000 to Taka 1,20,000.

According to the section 5, by keeping central VAT registration, SRO may be abolished; In Act section 45, at the time of Export, adjustment of VAT and Supplementary Duty has to be mentioned clearly.

In Act section 101(1)(ga)- For Value Added Tax with minimum 7(seven) years experienced Lawyer or Chartered Accountants or Cost and Management Accountant should be included.

Besides, the discussants put emphasis on food and agricultural safety, medical and health security, national disaster management, industrialization and capital market development, providing special incentives to garments sector, special incentives for aviation and transportation.