The country needs to focus more on bagging increased volume of export receipts, remittance and FDI (foreign direct investment) to stabilise forex currency reserve, speakers told a seminar.
Simultaneously, they said, the revenue earnings require to be enhanced further by expanding the tax net which will enable the government to borrow less from the market, and the foreign borrowing increases vulnerability to external conditions and potential currency depreciation, according a press release.
The discussants made the observations at the seminar on 'the Salient Features of Finance Act 2024: Investment Perspective' organised by the Institute of Chartered Accountants of Bangladesh (ICAB) at its auditorium on Sunday.
AKM Badiul Alam, member (Tax Policy), National Board of Revenue (NBR), was present as the chief guest while Dr Nasiruddin Ahmed, former chairman of NBR, Dr. Ahsan H. Mansur, executive director of the Policy Research Institute of Bangladesh, and Md Farid Uddin, ex-member of Customs and VAT, NBR were present as the panel discussants at the seminar.
Presenting a keynote paper, Snehasish Barua FCA, Partner, Snehasish Mahmud & Co., Chartered Accountants, said the increased money supply and demand can push prices up. However, demand for consumption must be contained and price must be monitored to keep the current trend of inflation stable, he added.
The government's borrowing may raise interest rates, deterring private investment, which needs to be addressed prudently, speakers said adding provision in the finance bill to all receipts and income must be transacted through bank transfer for every single transaction above Tk. 0.5 million and annual transaction over Tk3.60 million of expense and investment would bring a positive impact on the economy.
They said under the new finance bill TDS on payment to non-residents shall not be applicable for the cases like payment made to any authority of the foreign country, payment for subscription fee of professional body, expenses of liaison office, international product development and marketing expense, tuition fees, and any type of security deposit.
Therefore, it will reduce hassle in making outward remittance and reduce tax burden as well. Tax net widened by introducing a new withholding entity, they opined.
The speakers also said the government employees and individuals having total assets worth more than Tk. 5.0 million need to submit assets & liabilities statements which will enhance transparency and accountability within the public sector and give some relief for the individual taxpayers other than government employees.
Mandatory PSR Submission for obtaining and renewing licenses of hotels, restaurants, motels, hospitals, clinics and diagnostic centers located within the city corporation area will increase tax net, they further said.
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