The Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday in a budget reaction said more initiatives are required to extend the tax net for increasing tax-GDP ratio in the country. The ICAB and the National Board of Revenue (NBR) can work together to verify company documents on income tax return issues which will help the government to achieve the fiscal revenue collection target, ICAB leaders said. The ICAB said this in a press conference for a formal reaction on the proposed budget, held at CA Building at Karwan Bazar in the capital. Also read: Budget: Dr Atiur for reconsidering some tax proposals Md. Shahadat Hossain FCA, president ICAB, Md. Humayun Kabir FCA, ex-president, ICAB, and Shubhasish Bose, CEO of ICAB, spoke at the function. The ICAB thanked Finance Minister AHM Mustafa Kamal for receiving almost all proposals of the institution on supplementary duty, tax and VAT related issues. Reduction of the ratio of source tax and its field, tax reduction for specific companies in special rate are appreciated in the proposed budget. Separate policy and regulation for start-up business will attract the generation to start innovative business, said ICAB. The ICAB leaders also said changing revenue policy for some sectors will encourage export variation, which is needed to increase export volume of Bangladesh. “Input Tax Credit on Business Services Proposal to reduce fines from 100 percent to 50 percent and maximum 100 percent, to perform operations electronically in a bonded warehouse - These topics are up-to-date and business friendly,” said ICAB in the budget reaction. Also read: Budget FY23: Laundered money to be legalized by 7-15 pc tax Md. Shahadat Hossain FCA, president ICAB, Md. Humayun Kabir FCA, ex-president, ICAB, Shubhasish Bose, CEO of ICAB, spoke at the function. NKA Mobin FCA, Sabbir Ahmed FCA, Md, Abdul Kader Joarddar FCA, Snehasish Barua FCA, Mahbub Ahmed Siddique FCA, among others, present in the press conference.

Speakers at a discussion termed the ‘Padma Bridge’ as a symbol of national aspirations and urged the government to build it as an economic corridor for both sides of the river for the greater benefits of the country. They emphasize that this bridge needs to be made an economic corridor. If economic zones and industrial parks can be built around the river, it will be able to contribute to economic development and employment. They came up with the suggestion while speaking in a discussion on 'Current Status of the Macroeconomic: Bangladesh Perspective,' jointly organized by the Institute of Chartered Accountants of Bangladesh (ICAB) and Economic Reporters Forum (ERF) at the CA Bhavan Auditorium in Karwanbazar on Saturday. Also read: All 64 districts to celebrate Padma Bridge's inauguration Planning Minister MA Mannan, the chief guest of the discussion, said the government is working to check waste of state money in every sector of the country. "We are working to prevent waste, sometimes we are relaxed. It has to be rushed. Now there are 1800 projects. We are designing the priority projects based on importance and need,” the planning minister added. Prof Mustafizur Rahman, Distinguished Fellow, Center for Policy Dialogue (CPD), said the Padma Bridge is a symbol of national aspiration. It should not only be used for transportation, it should be made an economic corridor. “There were plans to build 17 economic zones around the Padma Bridge. They have to do that. Then it will be able to contribute to the national economy and employment,” he said. Ahsan H. Mansur, Executive Director, the Policy Research Institute (PRI) and Chairman Brac Bank, said that it is important to keep the exchange rate of taka stable, it is also important to strengthen local currency. “The price of the US dollar was between 82, 83 and 84. But suddenly the taka depreciated severely, there is a reason also. But a stable exchange rate is important for the economy,” he said. Also read: Padma Bridge is a blessing for southern people: Minister Regarding the budget, Mansur said, “Our budget is only 14 percent of GDP, which is less than other countries. Again, a large expenditure of our budget goes to pay salaries and allowances. The rest of the money is used for government development work. It is better to make the budget at least 20 percent of GDP.”

President of the Institute of Chartered Accountants Bangladesh Mahmudul Hasan Khusru circulated his reaction to the budget placed before parliament today for the next fiscal 2021-22.   He said his organization is looking forward to helping the government implement the budget, thanking the finance minister for acknowledging their role. Also read: New budget unveiled with focus on protecting lives and livelihoods "We believe that the joint initiative of NBR and ICAB in implementing Document Verification System (DVS) will facilitate to achieve the targeted revenue. We also believe that this initiative will bring about transparency and accountability in financial arena. We thank the Finance Minister to insert this significant issue in his budget speech," said Abu Nayem, a retired squadron leader in the army. "We appreciate that the proposed budget has focused on employment generation through skill development, exemption in light engineering, exemption of agro-based industry and brining the new concept Made in Bangladesh," he added. Also read: New budget: Tracking prices going up and down At the same time, he  said "more budgetary allocation" is expected in Education, Research and Development and Automation in tax administration. "Budget allocation for social safety net seems to be inadequate considering the substantial number of people falling below the poverty level due to ongoing COVID-19," said Mahmudul Hasan Khusru.

To enhance the export of Bangladeshi products and services, the country will have to explore untapped markets in the Commonwealth of Independent States (ex-Soviet republics), Latin America and Africa instead of depending on the European Union and the US. Bangladesh has the least market share in Africa, but many opportunities await there. There are 16 countries in the Southern African Development Community. The bloc is a common customs union that could be a gateway to a market of almost 300 million people. If a product enters one member country, it can easily travel to other countries without facing customs problems. So efforts are necessary to conclude a preferential trading agreement or free trade agreements with these African countries. Experts and stakeholders made the comments Saturday at the webinar "Diversification of Bangladesh's Export Basket: Opportunities and Challenges" organised by the Institute of Chartered Accountants of Bangladesh (ICAB). Commerce Minister Tipu Munshi said at the event: "Export earnings have big effects on our investment, GDP growth, real exchange rate, unemployment, government revenue and expenditure. So, export diversification is the highest priority area of our government." Although the geographic location of Bangladesh is ideal for global trade, the country is facing a trade deficit of $15 billion, ICAB CEO Shubhashish Bose said. In fact, the country’s trade deficit widened to $17.86 billion in 2020 from $15.8 billion ion 2019. "The country's six major export items – woven garments, knit garments, leather and leather products, jute and jute goods, agricultural products, frozen foods – constituted 92% of its export during the fiscal year 2019-20," he added. "However, the IT sector, pharmaceutical products, oceangoing shipbuilding industry, light engineering sector ceramic and porcelain wares are thrust sectors and deserve more attention for earning more foreign currency."

Speakers at a webinar Tuesday stressed the need for framing a COVID-19 pandemic focused budget for the next fiscal year giving the highest priority to the health sector to mitigate the health-related risks alongside focusing on sound macroeconomic management, widening social safety nets, raising the tax-GDP ratio and generating more employments. They also emphasised strengthening the ongoing vaccination programme, carrying on necessary tax reforms as well as reducing the corporate tax rates, ensuring proper budget implementation and quality spending of development projects, addressing the livelihood issues in the context of pandemic, prioritising the CMSMEs and bringing the education sector under the purview of the stimulus packages. The recommendations came up with at a webinar on ‘Macroeconomy: Expectations from National Budget 2021-22’ jointly organised by the Institute of Chartered Accountants of Bangladesh (ICAB) and the Economic Reporters' Forum (ERF). The Economic Affairs Adviser to Prime Minister Dr Mashiur Rahman agreed with the suggestions to enhance budgetary allocation on the health sector and thus strengthen the ongoing vaccination campaign. Stressing the need for carrying out necessary reforms in the financial sector and in the revenue sector, he said reforms in the capital market and bond market is also necessary to attract the large scale investors. Mashiur noted that if the lion’s share of the deficit financing could be made available from the foreign sources then its impact on the domestic sector would not be that much. He also stressed the need for boosting confidence among the businesses and investors, attracting more FDI, ensuring skills development and sound basic education up to the secondary level. Distinguished Fellow of CPD Prof Dr Mustafizur Rahman emphasised on generating more employments, giving relief to the import substitute industries through taxation, revisiting the import regulations, enhancing quality expenditure, and ensuring necessary reforms. He was also critical about the scope for whitening black money in the budget saying it is an injustice to the honest taxpayers. Executive Director of PRI Dr Ahsan H Mansur proposed allocating Tk 15,000 crore for vaccination in the next budget and that fund should be made available from day one. For the new poor being created from the impacts of the pandemic, he said only cash support is not enough for them, rather some permanent measures should be awarded. The renowned economist also suggested addressing the livelihood issues due to the pandemic, prioritising the SMEs in the stimulus packages, focusing more on expenditure and said the budget deficit could be stretched from 7 to 8 percent. Executive Director of SANEM Dr Selim Raihan called for expanding economic operations and not having an obsessed mindset on growth, rolling out social safety net schemes for the urban poor, boosting business confidence through necessary measures, increasing budget implementation and ensuring some visible reforms. Former adviser to the caretaker government Rasheda K Chowdhury said that the next budget should be a pandemic-focused one while the education sector should be brought under the stimulus package as the losses to this sector is huge and it is invisible. "Education sector must not be less prioritised," she said. Chairman of PEB Dr M Masrur Reaz suggested for bringing around 50 percent of the country's population under the vaccination programme in the next one year, otherwise, the revival initiatives and recovery would be much tougher. He also proposed allocating one percent of GDP as social safety net for the poor as well as awarding another stimulus for the SMEs, especially for the small and micro-entrepreneurs. Senior research fellow of BIDS Dr Nazneen Ahmed strongly advocated for reducing the corporate tax rate, prioritising those development projects which are nearing completion, keeping budgetary allocation on creating health awareness as well as on health disaster management, making cheaper the internet facilities and also making available the gadgets for the poor students. BGMEA President Faruque Hassan urged the government to provide policy support to the affected industries till the crisis ends so that those could make a turnaround. He also demanded the government to keep the tax rates stable for 10 years or at least for five years for turnaround of the Industries. Chairman of Trustee Board of BUILD Abul Kasem Khan suggested for the continuation of the stimulus packages in the next budget as well as rationalizing taxation measures and improving the investment climate. MCCI President Barrister Nihad Kabir put utmost priority on ensuring qualitative spending of development projects through real-time basis monitoring and evaluation by the IMED, raising the tax-GDP ratio, giving policy support to CMSMEs, and also to check the trend of dodging tax and laundering of money abroad. DCCI President Rizwan Rahman suggested reducing the corporate tax rate progressively by 2.5 percent in the next three years and thus brings it at 25 percent to facilitate the businesses. Coming down heavily on the scope for whitening undisclosed money, he said that the business community would not accept such provision for whitening the money coming from 'burglary'. "Otherwise, the honest businesses will not feel encouraged to pay tax from the next year," he added. BASIS President Syed Almas Kabir suggested keeping the digital transaction out of the purview of VAT for the next 3 to 5 years to facilitate online transaction and wider materialisation of the 'Digital Bangladesh' initiative. ICAB President Mahmudul Hasan Khusru said the tax net is not widening that is why honest and existing taxpayers are overburdened with incremental tax recovery target. “While we would be graduating as developing country, our preferential benefits would be eroded, we’ve to compete with other developing countries. Hence, human resource development is paramount important, capacity building of our institutions and adoption of advanced technologies and professional education are also important to emphasise in the budgetary allocation,” he added. FICCI President Rupali Haque Chowdhury, former President of AmCham AKM Aftabul Islam, chief news editor of the Daily Prothom Alo Shawkat Hossain Masum, ICAB vice presidents Sidhartha Barua, Md Abdul Kader Joaddar and council member of ICAB Mohammad Forkan Uddin spoke at the webinar. Former ICAB president Md Humayun Kabir moderated the function while its CEO Shubhashish Bose spoke. ERF President Sharmin Rinvy made the opening remarks while its general secretary SM Rashidul Islam gave the vote of thanks and ICAB Vice President Maria Howlader gave the closing remarks.

The National Board of Revenue (NBR) should reduce tax deduction at source (TDS) following global practices and need to modernise and simplify the country's tax system. The regulator should offer incentives for Bangladeshi producers and focus on thrust sectors like leather, jute and garment fashion design to create a country brand in the international market. Experts said this at an online conference on direct and indirect tax organised by the Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday. Also read: NBR moves to speed up revenue collection Tax rate changes have a significant impact on investment decisions as investors prepare a budget and plan accordingly based on it, they said. Pointing to the tax on foreign nationals working in Bangladesh, the experts suggested introducing provisions like withdrawals of tax and customs benefits, cash incentives, cancellations of branches permission for unauthorised employment. Planning Minister MA Mannan said, "Considering the cost related to tax collection, it is better to chase the evasion of tax by big taxpayers than chasing marginal taxpayers." Also read: It's time to change the mindset on taxpaying: Salman F Rahman ICAB President Mahmudul Hasan Khusru said, "An improved tax system is the key to financing public services, reducing inequality, and making the government more accountable. Unfortunately, our tax rate is higher compared to the ones of similar economies including the neighbouring countries." "Our tax to GDP ratio is exceptionally low. This indicates that there must be some incompatibilities," he added Bangladesh is still a low tax effort country with a high buoyancy ratio, implying that the policy-makers of Bangladesh have the scope and potential to opt for greater revenue mobilisation through internal resources to meet the budgetary deficit, Mahmudul said. Also read: NBR sets its sight on cranking up tax-GDP ratio "However, the tax system in Bangladesh is gradually improving, raising more revenue and reducing the dependency on aid."

Speakers at a conference said Financial Reporting in Insurance Sector of Bangladesh is facing setback due to some grey areas between the International Financial Reporting Standard (IFRS) and existing local rules and regulations.

Planning Minister MA Mannan on Friday urged people from all wake of life to remain united to continue the country’s development in any situation as during the Liberation War.

Strong collaboration between Regulators is needed to bridge the gap between Financial Statements of Banks in Bangladesh. The regulators in banking sector to adjust the requirements between International Financial Reporting Standards (IFRS) and Local Laws and Regulations to repair the gaps while preparing the Financial Statements of Banks in Bangladesh.

Mahmudul Hasan Khusru took over the charge as the President of the Institute of Chartered Accountants of Bangladesh (ICAB) for the year 2021 at a formal ceremony held at ICAB Auditorium on Thursday.