ICMAB seeks source tax waiver on consumer goods

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) has proposed that the National Board of Revenue (NBR) exempt all kinds of agricultural and consumer goods from tax deduction at source in the upcoming budget to relieve the consumers amid soaring inflation.

At the same time, the Institute of Chartered Secretaries of Bangladesh (ICSB) has also proposed raising the tax-free income limit of an individual to Tk7 lakh from Tk3 lakh.

The proposals were put forward at a pre-budget discussion meeting organised by NBR at its Agargaon office in the capital on Thursday. NBR Chairman Abu Hena Md. Rahmatul Muneem presided over the meeting.

Urging the revenue board to scrap the rule of tax return submission by the people having no taxable income, ICMAB said a taxpayer identification number (TIN) holder has to prepare his/her returns as submission of tax return is mandatory for them.

Mentioning that new taxpayers are in fear to pay taxes whether he or she has been selected for audit, ICMAB president Md Abdur Rahman Khan said, “The NBR has to grant amnesty for new taxpayers that no audit for asset worth below Tk25 lakh.”

Rahman also laid stress on taxation of the digital economy income and said, “Now Facebook, Google, YouTube and Netflix are earning from the country. We consider bringing them under the income tax net. The board will have to bring them under the tax net like value-added tax wing.”

ICSB president Mohammad Asad Ullah said, “The current income tax ceiling is not apt for tax payment rather it is unrealistic too because of economic headwinds, including soaring inflation.”

“Taking into consideration, the revenue board will have to raise the tax-free income limit to Tk7 lakh and consider lowest earnings from the house rent from Tk 50,000 or 50 per cent as basic income.”

The NBR Chairman said, “We are also trying to widen the tax net, enhance compliance and make the automation and return submission process easy. It is not possible to ensure automations overnight because we have internal capacity issues and sometimes we have to depend on other organisations to integrate the system. So, it will take time.”

“What is the most important is our commitment which we ensure. So, the rest will be introduced soon,” the NBR boss continued.

VAT professionals placed their proposals at the meeting where NBR officials were present.