Proposed income tax law: ‘Not befitting despite improvement efforts’
The new income tax law drafted by the revenue authorities shows a number of efforts to improve taxation, but it still fails to keep in with changing business landscape, according to businessmen and legal experts.
At a webinar organised by the International Business Forum of Bangladesh (IBFB) Saturday, business leaders flagged different issues in the proposed law such as excessive tax deducted at source and advance tax, some heavier tax slabs for non-resident Bangladeshis and awarding revenue officials discretionary power.
In the keynote paper, former national revenue board chairman Muhammad Abdul Mazid said there had been attempts to impose legal framework and revenue narratives on people and businesses.
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"But there will be flaws if the law is finalised hastily without talks to stakeholders."
Muhammad Abdul Mazid said the changes in the income tax law should not disappoint the taxpayers. He suggested the revenue authorities not enforce the law by issuing just a statutory regulatory order while bypassing the parliament.
Emphasis on source tax, efforts to bring the similar revenue rules to a single place, automatising the tax refund and clarifying certain revenue topics in the proposed law earned appreciation of the ex-revenue board chief.
Meanwhile, business leaders said the Appellate Tribunal and the Alternative Dispute Resolution should be separate from the revenue board.
"Business landscape in the country has changed a lot, and the new law should get finalised in light of that," said Humayun Rashid, president of the International Business Forum of Bangladesh.
Referring to discretionary power conferred to revenue officials in the law, he warned of misuses. He also called for more private engagement in drafting the law to wind down the public-private sectoral gap.
With an emphasis on making the proposed law more business and taxpayer friendly, Humayun Rashid proposed to bring the entire population of the country under tax coverage.
"Individuals who will be eligible for income tax will pay it. But everyone should submit an account of income and expenditure," he argued in support of the proposal.
As the chief guest at the programme, State Minister for Planning Prof Shamsul Alam suggested making the draft law befitting after talking to the stakeholders.
"Without a need-based tax structure, revenue authorities' capacity building and automation, the gap between the revenue board and private sector would not minimise," said the state minister.
The forum Vice-President MS Siddiqui, the forum member and also former attorney general AF Hassan Ariff, Dhaka University accounting teacher Mohammad Tareq, and former revenue board member Md Alamgir Hossain also spoke at the programme.
