Home ›› 26 Jun 2022 ›› Corporate
Experts have expressed concern over imposing taxes on the Workers Profit Participation Fund (WPPF) maintained by the different organisations.
The observation was made at a discussion on the budget 2022-23 organised by the Institute of Chartered Secretaries of Bangladesh (ICSB) in Dhaka on Tuesday, according to a statement.
The proposal conflicts with section 244 of the Bangladesh Labour Act, 2006 which allows deduction of the funds allocated to WPPF to arrive at a taxable income, and at the same time it will lead to a state of double taxation, they said.
At the session, it was pointed out that the finance minister mentioned that WPPF is payable from tax profit after tax which seems misleading to the actual treatment and philosophy of WPPF. As per accounting principles, WPPF is payable from profit before tax.
This will also put a negative impact on the FDI climate as potential foreign investors will be reluctant to invest due to this irrationality of double taxation, said the statement.
The discussants suggested restructuring corporate tax as well as the individual tax keeping in view our competitors to increase foreign investment to enable confidence among private investors.
ICSB President Muzaffar Ahmed, Senior Vice President Md Azizur Rahman, Council Member and Seminar & Conference Sub Committee Chairman Md Shafiqul Alam spoke at the event, among others.
The discussion session was also attended by a good number of former and current government officials, corporate leaders, economic sector specialists, heads of professional institutes & associations and dignitaries.
The ICSB also shed light on some proposals of the new budget and probable impact on the corporates in many ways.
The proposed budget bears a huge deficit of Tk 2,450 billion. Achieving this budget would pose tremendous pressure on the government considering the challenges posed by COVID 19 situation, effects of the Russia-Ukraine conflict and the big burden of Rohingya refugees in the country, said the ICSB.
