The Foreign Investor’s Chamber of Commerce and Industry (FICCI) has expressed some concerns about the proposed national budget for the fiscal year 2023-2024 and draft Income Tax Act (ITA), 2023 which will have implications for the businesses and individuals in Bangladesh.

FICCI expressed concern over perceived inadequacy of allocations for the health, agriculture and education sectors in the budget at a press briefing on Wednesday.

The draft Income Tax Act (ITA), 2023 also required extensive reviews as some of the provisions in the law seems unreasonable as compared to the Income Tax Ordinance, 1984, they said.

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“The progressive changes proposed by our government is applaudable, however, the growth of the businesses and individuals may slow down with the disclosure of some of the provisions which will raise more tax burden,” said FICCI President Ezaz Bijoy.

“The imposed vat on locally manufactured mobile phones and increasing tax burden on loss making companies may aggravate the situation. We have some recommendations regarding solutions that may prevent the probable adverse situation. We hope that the recommendations are taken into consideration and allow the chamber to extend its continued support to the Government of Bangladesh and work together toward the development of the country by developing a tax-friendly environment,” he said.

FICCI also expected gradual withdrawal of minimum tax provisions in the new law instead it has been increased significantly, particularly on carbonated beverage industry from 0.6% to 5% of Gross Receipts (8X increase).

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Limiting cash transaction for corporates and organizations will put a cap on development as the country is yet to achieve total cashless transaction. Government should allow companies to spend a minimum percentage of its expenses rather than setting a definite number and set a target to achieve the 100% cashless goal in next 5 years, the press briefing also said.

FICCI also proposed reduction of arbitrary power of officers in tax procedure and suggested implementation of comprehensive digitalization of the three wings of NBR and externally connected systems for seamless transaction.

FICCI officials including Deepal Abeywickrema, Sr VP, Engr Abdur Rashid, member of Board of Directors, Sazzad Rahim Chowdhury, coordinator of Tarrif-Taxation and Regulatory Affairs Committee, were present at the press conference, among others.

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