Draft income tax law-2022: Taxpayers to get refund directly into bank account

To provide maximum facilitation to taxpayers, the draft income tax law-2022 proposes releasing income tax refund payments directly into their bank accounts through an automated system, said National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem.

While sharing the details of the proposed law at a seminar on Sunday, the NBR chairman   said various measures such as the abolition of discretionary power of field-level tax officials will make the new law entirely business-friendly.
The proposed law also includes international best practices, he added.

At the same time, some provisions have been added to the law to prevent tax evasion in various ways including transfer pricing.

The NBR chairman said the draft of the proposed law has already been published on the NBR website. It will be submitted to the Cabinet for approval next month after taking recommendations from various stakeholders by 25 November, he continued.
The NBR chairman, however, did not elaborate on when the law could be tabled in Parliament.

The current income tax law is in force under the Income Tax Ordinance, 1984. Even though the law has been changed by statutory orders from time to time, it still remains as an ordinance.

In 2011, the government first talked about formulating a new income tax law. Despite extensive activities and scrutiny over the last several years, the much-anticipated new income tax law has not been passed yet.

Asked about the delay at the press conference on Sunday, the NBR chairman declined to comment on this.

The NBR chairman briefed the media on the changes made in the proposed law.

He said although the existing law is in English, efforts have been made to present the new law in Bangla and in a straightforward manner.

Unlike the existing law, the new one includes separate chapters and sections that incorporate all matters related to determining taxpayers' income in a particular sector.

In addition, the draft law includes various provisions to ensure transparency in tax file audit of tax officials, make the rules of tax deduction and collection at source more clear and precise, avoid ambiguity in the calculation of taxpayers' income, adjust losses and make deductions, and simplify approval of business expenditures, said the NBR chairman.

In addition, domestic transfer pricing and anti-avoidance rules have been introduced.

The NBR chairman said one of the aims of the new income tax law is to accelerate the country's economic growth, ensure a tax-friendly environment, ensure accountable tax administration, and facilitate tax administration.

Senior NBR officials were also present at the press conference.