NBR unveils draft income tax act 2022

The National Board of Revenue (NBR) has formally unveiled the draft income tax act 2022 as a potential replacement for the Income Tax Ordinance, 1984.

Following a Cabinet directive, the board prepared this draft in Bangla for easier interpretation, and included updated provisions in line with global business practices. It had earlier published this draft in their web portal on Wednesday to gather reviews from taxpayers and stakeholders.

Speaking to reporters at his office in Dhaka on Sunday, NBR Chairman Abu Hena Md Rahmatul Muneem said, “The income tax act 2022 will boost the overall economy of Bangladesh and further ensure financial discipline in the country.”

In order to review the international best practices related to taxes, this draft not only aims at revenue collection, but also focuses on ensuring a business friendly environment in the country, says a press release issued by the NBR the same day.

Muneem further said, “By November 25 this year, the board will collect suggestions and opinions from various stakeholders, and conduct necessary workshops, seminars, symposiums and meetings with them before finally presenting this draft before the Cabinet.

“At the same time, the NBR will consult various ministries regarding this draft law. It will review all opinions and suggestions within November 30, and then forward the draft law to the Cabinet Division shortly.”

According to the NBR press release, the draft sets goals to accelerate economic activities in the country, ensure a business-friendly environment, ensure transparency and accountability in tax administration, and modernise revenue management.

The draft also incorporates international practices, introduces e-tax management, provides taxpayers with laws written in easy to understand text, makes effort to eliminate ambiguity, and seeks to ease the tax administration process.