Institute of Cost and Management Accountants of Bangladesh (ICMAB) has demanded the implementation of financial audit as well as cost audit to bring transparency in the accounting system.
President of the ICMAB Md Mamunur Rashid said this has been made compulsory in various countries including neighboring India.
At the same time, if the cost of goods sold statement can be audited by the CMAs, the overall economy will be benefited as it will ensure cost efficiency through proper cost management, said while briefing reporters about the organisation’s reactions to newly unveiled national budget 2022-23 at Economic Reporters Forum (ERF) auditorium in the capital on Saturday.
He said that although many practical and business-friendly steps have been taken in the VAT Act this year, further steps should be taken incorporating CMAs to make business easier, more transparent and increasing revenue.
For the adjustment of reduced tax levied at source, the term has been extended to three years instead of the next one. It is suggested to allow a full financial year for such adjustment as the accounts are prepared at the end of a year.
Read: Focus on extending tax net to enhance Tax-GDP ratio: ICAB
For a proper and transparent accounting system and to increase revenue, the accounting statements should have the cost of goods sold certified by the CMAs.
“If the input output coefficient (Mushok 4.3) is certified by the CMAs, VAT will be collected on the correct price. These CMA’s certification will also ensure no requirement for re-audit on product price unless for certain specific cases. This clause may be accepted as a pilot project,” he said.
The ICMAB president pointed out that the proposed budget is with a total deficit of Tk 2,45,000 crore where the proposed expenditure is of Tk 6,8,000 crore against the revenue of Tk 4,33,000 crore.
“Achieving this huge budget in the post Corona period is a huge challenge for the government but it is not impossible," he opined.
ICMAB, as a professional accountancy body under the Ministry of Commerce of the Government, wants to extend its support to the government in achieving this budget.
The ICMAB president said that for an individual taxpayer, he proposed that the maximum tax-free income limit should be Tk 4,00,000 while it should be Tk 5,00,000 for women and elderly citizens, above 65 years.
He demanded that the deduction of income tax at source from service fees like advisory, consultancy, professional, technical etc. should be considered as final tax.
Read: Budget: Dr Atiur for reconsidering some tax proposals
Senior citizens whose only source of income is pension and interest on savings certificates should be exempted from return submission.
He proposed to increase the budget allocation for food security, agricultural security, medical and health security, national disaster response, industrialization, business expansion and capital market development, special facilities for garments sector, special facilities for transport industry and aviation industry.
The cost of travel has increased a lot, the tax-free limit on travel allowance for individual taxpayers should be increased from Tk 30,000 to Tk 60,000.
Besides, allowable investment sectors should be widened to offer investment tax rebates. Not everyone understands the stock market, so the DPS limit should be increased from Tk 60,000 to Tk 120,000.
AKM Delwar Hossain, Advisor, SAFA, and former President of SAFA also spoke on the budget. Md Monirul Islam, Vice President, AKM Kamruzzaman, Secretary, Ali Haider Chowdhury, Treasurer, ICMAB and Chairman of Dhaka Branch Council also spoke on the occasion.