CAs for tax holiday for investment in infrastructure development
Thursday, 12 May 2011
FE Report
The country's chartered accountants (CAs) Wednesday proposed that the government offer tax holiday facilities for investment in infrastructure development and cut discretionary power of taxmen to ensure hassle-free tax administration for taxpayers. They said the country's poor infrastructure is the main cause of bleak investment scenario with insufficient energy resources. The National Board of Revenue (NBR) can consider providing tax exemption to infrastructure development companies that can make big investments. The Institute of Chartered Accountants of Bangladesh (ICAB) members made these proposals in a seminar on draft direct tax act-2011 and draft VAT act-2011 in the city. NBR chairman Nasiruddin Ahmed and Income Tax Member (policy) Aminur Rahman explained the salient features of proposed new income tax and VAT law. The NBR chairman said the NBR is willing to work with the CAs on partnership basis. "We know cost of doing business is very high in the country. The NBR is always committed to protecting consumers' rights," he said. Aminur Rahman said the new law has cleared the definition of capital asset as the NBR feels there should be difference in tax rates on regular trading in capital market and in rates on long-term investment. Responding to a question about doubt on cost-effectiveness of proposed wealth tax measure, the tax member said there must a valuation method on determining tax on wealth. Referring to data of the Bureau of Statistics, he said differences between wealth and income is widening sharply and the state has to bear additional cost to protect wealth of citizens. People having excess wealth should pay a certain amount of tax for this reason, he said. He urged the CAs to take note of some inconsistencies in income and expenditure of companies. He said a total of 200 BMW cars were imported in the last one year by some top officials of different companies but none of the private limited companies declared dividend. It has been found that some top officials of different companies are purchasing cars with Tk 20 million while the companies' paid-up capital is much lower than the amount. CAs requested the NBR not to impose 15 per cent value added tax (VAT) on them and keep it unchanged at existing 4.5 per cent. They said large taxpayers are subject to unusual harassment in the name of audit every year which did not bring any positive result rather than creating nuisance in market. ICAB Vice President Md. Shahadat Hossain, tax consultant C. R Mazumder and Director (finance) and Company Secretary of Berger Paints Abdul Khalek presented keynote papers recommending measures for incorporation in the proposed new law.
The country's chartered accountants (CAs) Wednesday proposed that the government offer tax holiday facilities for investment in infrastructure development and cut discretionary power of taxmen to ensure hassle-free tax administration for taxpayers. They said the country's poor infrastructure is the main cause of bleak investment scenario with insufficient energy resources. The National Board of Revenue (NBR) can consider providing tax exemption to infrastructure development companies that can make big investments. The Institute of Chartered Accountants of Bangladesh (ICAB) members made these proposals in a seminar on draft direct tax act-2011 and draft VAT act-2011 in the city. NBR chairman Nasiruddin Ahmed and Income Tax Member (policy) Aminur Rahman explained the salient features of proposed new income tax and VAT law. The NBR chairman said the NBR is willing to work with the CAs on partnership basis. "We know cost of doing business is very high in the country. The NBR is always committed to protecting consumers' rights," he said. Aminur Rahman said the new law has cleared the definition of capital asset as the NBR feels there should be difference in tax rates on regular trading in capital market and in rates on long-term investment. Responding to a question about doubt on cost-effectiveness of proposed wealth tax measure, the tax member said there must a valuation method on determining tax on wealth. Referring to data of the Bureau of Statistics, he said differences between wealth and income is widening sharply and the state has to bear additional cost to protect wealth of citizens. People having excess wealth should pay a certain amount of tax for this reason, he said. He urged the CAs to take note of some inconsistencies in income and expenditure of companies. He said a total of 200 BMW cars were imported in the last one year by some top officials of different companies but none of the private limited companies declared dividend. It has been found that some top officials of different companies are purchasing cars with Tk 20 million while the companies' paid-up capital is much lower than the amount. CAs requested the NBR not to impose 15 per cent value added tax (VAT) on them and keep it unchanged at existing 4.5 per cent. They said large taxpayers are subject to unusual harassment in the name of audit every year which did not bring any positive result rather than creating nuisance in market. ICAB Vice President Md. Shahadat Hossain, tax consultant C. R Mazumder and Director (finance) and Company Secretary of Berger Paints Abdul Khalek presented keynote papers recommending measures for incorporation in the proposed new law.