The Institute of Chartered Accountants of Bangladesh (ICAB) supports the government’s 15% tax amnesty for companies to legalize undisclosed income pre-2021. This move addresses issues arising from the document verification system (DVS), which affected income reporting accuracy. Concerns arise over financing the budget deficit through local borrowing (Tk 160,900 crore), potentially fueling inflation given the current 9% rate. ICAB appreciates tax reforms, including extended application periods and reduced rates for private companies. Changes in VAT and supplementary duties act, alongside Electronic Fiscal Device Management Systems (EFDMS) implementation, are commended for expanding the VAT net. Despite global economic uncertainties, the government’s commitment to a Tk 265,000 crore development budget is praised. The new Customs Act 2023 introduces self-assessment, reduced initial duties, and extended refund claim periods. However, achieving a 29% increase in private sector investment is deemed challenging due to banking sector liquidity constraints. Concerns are raised over stagnant tax-free income limits, potentially impacting lower-middle-income earners amidst inflationary pressures.
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