The successful implementation of the proposed budget requires the involvement of the professionals.
Implementation of the proposed large budget may be a challenge for the government, though not impossible to achieve, said the Institute of Cost and Management Accountants of Bangladesh (ICMAB).
The President of the ICMAB Mr. Md. Mamunur Rashid FCMA expressed such opinions to the journalists at the office of Economic Reporters Forum in the capital on Saturday afternoon.
The President of ICMAB pointed out that the proposed budget is with a total deficit of Tk. 2,450 billion where the proposed expenditure is of Tk. 680 billion against the revenue of Tk. 4,330 billion. Achieving this huge budget in the post Corona period is a huge challenge for the government but it is not impossible, he opined. ICMAB, as a professional accountancy body under the Ministry of Commerce of the Government, wants to extend its support to government in implementing this budget.
He demanded implementation of financial audit as well as cost audit to bring transparency in the accounting system which has been made compulsory in various countries including neighboring India. At the same time, if the cost of goods sold statement can be audited by the CMAs, the overall economy will be benefited as it will ensure cost efficiency through proper cost management.
He proposed that a provision should be made in appointing an ICMAB member as one judicial member in each bench of the Taxes Appellate Tribunal. This will reduce the number of pending income tax cases.
For an individual taxpayer, he proposed that the maximum tax-free income limit should be Tk. 4,00,000/-; it should be Tk. 5,00,000 for women and elderly citizen (above 65 years).
He demanded that the deduction of income tax at source from service fees like advisory, consultancy, professional, technical etc. should be considered as final tax.
Senior citizens whose only source of income is pension and interest on savings certificate should be exempted from return submission.
He proposed to increase the budget allocation for food security, agricultural security, medical and health security, national disaster response, industrialization, business expansion and capital market development, special facilities for garments sector, special facilities for transport industry and aviation industry.
The cost of travel has increased a lot, the tax-free limit on travel allowance for individual taxpayers should be increased from Tk. 30,000 / - to Tk. 60,000 / -. Besides, allowable investment sectors should be widen up to offer investment tax rebate. Not everyone understands the stock market, so the DPS limit should be increased from Tk. 60,000/ - to Tk. 120,000/ -.
It might not be the right decision to disapprove spending in the WPPF provided under the Labour Law. Many organizations will be reluctant to spend in this sector.
The tax deducted on dividend income of an individual should be considered as final tax. Because it is often not possible to collect evidence of income tax deduction in this case and it is difficult, time consuming, and the taxpayer has to face many problems at the field level in this regard.
Although many practical and business-friendly steps have been taken in the VAT Act this year, further steps should be taken incorporating CMAs to make business easier, more transparent and increasing revenue.
For the adjustment of reduced tax levied at source, the term has been extended to three years instead of the next one. It is suggested to allow full financial year for such adjustment as the accounts are prepared at the end of a year.
For proper and transparent accounting system and to increase revenue, the accounting statements should have cost of goods sold statement certified by the CMAs. If the input output coefficient (Mushok 4.3) is certified by the CMAs, VAT will be collected on the correct price. These CMA's certification will also ensure no requirement for re-audit on product price unless for certain specific cases. This clause may be accepted as a pilot project.
Mr. AKM Delwar Hossain FCMA, Advisor, SAFA, and former President of SAFA also spoke on the budget. Mr. Md. Monirul Islam FCMA Vice President, Mr. AKM Kamruzzaman FCMA, Secretary, Mr. Ali Haider Chowdhury FCMA, Treasurer, ICMAB and Chairman of Dhaka Branch Council also spoke on the occasion. Officials were also present on the program. Md. Shafiqul Alam FCA, FCMA, Principal & CEO, Shafiqul Alam & Co. Chartered Accountants, presented the paper on the budget.
Meanwhile, Center for Inclusive Development Dialogue (CIDD) sought an inclusive development budget to face the soaring inflation.
The newly established organization called a discussion meeting on 'Proposed 2022-23 Budget' on Saturday in the city.
Its secretary general and Southeast University vice chancellor, Dr AFM Mafizul Islam presented a keynote address and said "We want an inclusive development budget in the face of inflation."
He said that in the next 2022-23 financial year, high inflation may occur. As a reason, Bangladesh is not able to import wheat from Russia and Ukraine now as well as fertilizer from Russia and Belarus.
Money is depreciating against the dollar. Prices of imported raw materials are rising, and so does the shipping cost.
MA Mannan, minister for the planning, was the chief guest of the event.
arafataradhaka@gmail.com