ICAB welcomes Tk 2,000 minimum tax

The Institute of Chartered Accountants of Bangladesh (ICAB) yesterday welcomed the budgetary proposal for registered taxpayers, who have to file their income, expenditure and wealth statements to avail 38 services, to pay a minimum tax of Tk 2,000 even if they have no taxable income. 

The autonomous body thinks that it would help expand the tax net and increase the filing of returns.

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The ICAB issued the statements organising a press briefing at its headquarters in Dhaka on the proposed budget for fiscal year 2023-24.

"The minimum tax is not new. It is already there," said Md Humayun Kabir, chairman of the ICAB's Taxation and Corporate Laws Committee while responding to journalists' queries.

Currently there are many individuals with bank deposits who actually pay taxes on their interest earnings from the savings, he said.

And the tax is deducted by banks while crediting the interest income to the accounts of the depositors, he said.

The depositors will be able to show the withholding tax in their tax returns, which now many do not do, he said.

Businesses should not oppose the new rule as this will increase tax net, said Kabir.

Besides, the body of professional also welcomed the Tk 761,795 crore budget despite the global and domestic challenges.

"It is an encouraging step forward for Bangladesh," said the body.

Once a document verification system (DVS) is implemented, transparency and accountability of the financial sectorwill increase, said ICAB President Md Moniruzzaman.

"The DVS will bring transparency and accountability to the financial sector, as well as contribute to tax reform and improvement in tax-to-GDP ratio and increase revenue collection," he said.

At the event, Snehasish Barua, a partner at the Snehasish Mahmud & Co, a chartered accountancy firm, presented a paper.