Bangladesh's apex chamber stands to whistle stop a drafted new income-tax law to have the authority to elicit the private sector's recommendation as businesses see 'loopholes' in it.
Stating in a petition that they were held distant onlookers in the law-farming process, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) seeks adequate time now for scrutiny of the draft Income Tax Law 2022.
It proposes that the businesses be given until March 30, 2022, to provide their well-thought-out onions before the enactment of such a vital law.
The draft Income tax law, unveiled in October last for eliciting public opinion, would replace the Income Tax Ordinance 1984.
Earlier, the NBR had requested the stakeholders to give their opinion on the draft law by November 25, 2021. Later, it extended the timeline until December 31 with the approval of the cabinet.
In a letter to the National Board of Revenue (NBR) chairman, Abu Hena Md Rahmatul Muneem, on December 23, 2021, FBCCI president Md Jashim Uddin proposed to form a committee taking adequate time prior to finalising the new income-tax law suiting country context.
Talking to the FE Sunday, the FBCCI chief said the draft law needs scrutiny by an expert committee that the federation formed recently as businesses across the country are involved with the matter of taxing law.
"It would not be wise to implement such crucial law hurriedly as there was no impact assessment conducted prior to framing the law," he argues.
He demanded participatory measures with proper consultation with the businesses on drafting these types of laws that govern trade and business and the economy at large.
He mentioned that there was a taskforce between the NBR and the FBCCI that remained inactive for long, thus keeping businesses aloof from the law-framing process.
"The FBCCI has started compiling recommendations of its associated chambers, associations and stakeholders to prepare final recommendation on the basis of reality," he writes in the letter.
He expresses optimism about finalizing the FBCCI recommendations on the draft law within the demanded timeframe.
A senior tax official said they had received opinions from some of the stakeholders, including the Foreign Investors Chamber of Commerce and Industry (FICCI), the Institute of Chartered Accountants of Bangladesh (ICAB), Dhaka Chamber of Commerce and Industry (DCCI), the Institute of Cost and Management Accountants of Bangladesh (ICMAB).
"We will hold a series of meetings this week with the stakeholders for reappraisal of the law in order to place the draft before the cabinet in January 2022," he added.
Earlier at a seminar, the businesses had picked out a number of loopholes in the draft income-tax law that they fear may create complexities for business operations of both foreign and local investors after its implementation.
doulot_akter@ yahoo.com
