Targeted revenue will be difficult to collect: ICAB | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Sunday
July 06, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SUNDAY, JULY 06, 2025
Targeted revenue will be difficult to collect: ICAB

Budget

TBS Report
12 June, 2020, 07:05 pm
Last modified: 12 June, 2020, 07:13 pm

Related News

  • Mahmudur Rahman elected chairman of ICAB Dhaka Regional Committee
  • ICAB elects new president and four vice presidents
  • ICAB says only its members have legal statutory audit rights
  • ICAB urges govt to keep faith in CAs in clean auditing
  • ICAB terms proposed budget business-friendly, welcomes steps to broaden tax net

Targeted revenue will be difficult to collect: ICAB

The Institute of Chartered Accountants of Bangladesh appreciates that the proposed budget has prioritised health, agriculture and social safety net

TBS Report
12 June, 2020, 07:05 pm
Last modified: 12 June, 2020, 07:13 pm
Targeted revenue will be difficult to collect: ICAB

The revenue target set at Tk378,000 crore in the proposed budget will be difficult to collect due to the negative impacts of the current pandemic, observed the Institute of Chartered Accountants of Bangladesh (ICAB).

In a press release issued on Thursday, the ICAB said, "We expect that the government will finance the deficit from the money market without reducing credit flows to the private sector.

"No doubt, the proposed budget is ambitious and involves a lot of challenges in the implementation process. Impediments to on-time implementation of ADP [annual development prorgramme] projects should be addressed to achieve the targets of GDP growth set in the proposed budget," the ICAB added.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

On Thursday, the government announced a Tk568,000 crore budget – equivalent to 17.9 percent of the GDP. The total budget has increased by 13.24 percent compared to the revised budget of the 2019-20 fiscal year. Development budget increased by 6.27 percent compared to the revised budget. 

The ICAB appreciated that the proposed budget of FY2020-21 has prioritised health, agriculture, social safety net and job creation for recovering from the current crisis. 

"Corporate tax rates reduced from 35 percent to 32.5 percent is a relief for the local companies and this will also encourage industrialisation and foreign direct investment (FDI) in Bangladesh," ICAB opined. 

In the proposed budget, the threshold of tax-free income has been raised to Tk3 lakh from Tk2.5 lakh for individual taxpayers and a 5 percent tax slab has been introduced instead of the existing 10 percent. The highest tax slab has also been reduced to 25 percent from existing 30 percent. 

"This will give relief to low-income people and encourage tax payers to disclose their actual incomes, which will boost the country's image and global ranking to attract FDI, ultimately bringing positive impact in revenue collection and employment," said the ICAB. 

In view of the current unusual situation, the ICAB found rationality in widening the areas of investment for previously undisclosed income by paying taxes at a lower rate. 

However, it expects that this extraordinary measure will not be continued beyond the stipulated year. 

The chartered accountants' institution welcomed the proposal of reducing advance tax from 5 percent to 4 percent for importing materials, and the extension of time limit from two to four months to claim both input VAT rebate and decreasing the adjustment of advance tax. 

"This gives more flexibility to businesses. Amendments allowing businesses to claim 80 percent rebate on VAT paid on transportation bill and to claim input VAT rebate for utility bills like Wasa, Desco, Titas, etc. without Mushak 6.3 are also business friendly moves," said the ICAB.

This will reduce the cost of businesses. However, the ICAB thinks that the amendment restricting the time for using the materials, purchased or imported, within four months is an impracticable proposition and will be difficult to monitor and may increase disputes and harassment. 

The existing provision in this regard was better at catering to the purpose. The ICAB therefore suggested deleting the proposal. 

"Increase of disputed VAT deposit at the time of filing appeal to First Appeal and VAT Appellate Tribunal from 10 percent to 20 percent will pose a big burden for the business. This should be kept as it is," ICAB said. 

The ICAB welcomed the exemption of VAT on Covid-19 medicines, test kits, PPE and surgical accessories at import, manufacturing and trading stages.

Economy / Top News

Budget 2020 Analysis / ICAB

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Ships and shipping containers are pictured at the port of Long Beach in Long Beach, California, US, 30 January 2019. Photo: REUTERS
    Bangladesh may offer zero-duty on US goods to get reciprocal tariff relief
  • BNP Standing Committee member Salahuddin Ahmed spoke at a rally organised by the Keraniganj Upazila South BNP today (5 July). Photo: Collected
    AL allies of 16 years now back proportional elections: Salahuddin
  • Expatriates and students rallied across the globe — from Malaysia to the USA, UK, Middle East, and Europe — in protest against the Hasina government in July 2024. Photo: Anonno Afroz
    How expatriates powered the July uprising from afar

MOST VIEWED

  • Ships and shipping containers are pictured at the port of Long Beach in Long Beach, California, US, 30 January 2019. Photo: REUTERS
    Bangladesh expects US tariff relief after Trump announces cuts to Vietnam
  • Customs bureaucracy: Luxury cars rot at Ctg port
    Customs bureaucracy: Luxury cars rot at Ctg port
  • The release was jointly carried out by the Forest Department and the Chattogram Zoo authorities as part of an ongoing initiative to conserve wildlife and maintain ecological balance. Photo: Collected
    33 Python hatchlings born in Ctg zoo released into Hazarikhil sanctuary
  • File photo of a new NBR office in Agargaon, Dhaka. Photo: UNB
    NBR launches 'a-Chalan' for instant online tax payments
  • Officials from various NBR offices in the capital gather at the NBR headquarters in Agargaon, Dhaka on 24 June. File Photo: TBS
    Govt may ease punitive actions against NBR officials
  • Infograph: TBS
    How BB’s floating rate regime calms forex market

Related News

  • Mahmudur Rahman elected chairman of ICAB Dhaka Regional Committee
  • ICAB elects new president and four vice presidents
  • ICAB says only its members have legal statutory audit rights
  • ICAB urges govt to keep faith in CAs in clean auditing
  • ICAB terms proposed budget business-friendly, welcomes steps to broaden tax net

Features

Students of different institutions protest demanding the reinstatement of the 2018 circular cancelling quotas in recruitment in government jobs. Photo: Mehedi Hasan

5 July 2024: Students announce class boycott amid growing protests

1d | Panorama
Contrary to long-held assumptions, Gen Z isn’t politically clueless — they understand both local and global politics well. Photo: TBS

A misreading of Gen Z’s ‘political disconnect’ set the stage for Hasina’s ouster

1d | Panorama
Graphics: TBS

How courier failures are undermining Bangladesh’s online perishables trade

1d | Panorama
The July Uprising saw people from all walks of life find themselves redrawing their relationship with politics. Photo: Mehedi Hasan

Red July: The political awakening of our urban middle class

1d | Panorama

More Videos from TBS

Trump says he is about to raise tariffs as high as 70% on some countries

Trump says he is about to raise tariffs as high as 70% on some countries

3h | TBS World
Will political disputes delay the elections?

Will political disputes delay the elections?

3h | TBS Stories
Initiative to break the deadlock created by the US

Initiative to break the deadlock created by the US

3h | TBS World
Beijing openly sides with Moscow for the first time

Beijing openly sides with Moscow for the first time

6h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net