ICAB for reducing corporate tax rates to encourage taxpayers***

ICAB President Parveen Mahmood has urged the authorities concerned to revise and reduce corporate tax rates to encourage taxpayers. For banks, insurance and financial institutions, she suggested 40 per cent tax instead of existing 42.5 per cent. She made the appeal while speaking at a CPD Seminar organised by the Institute of Chartered Accountants of Bangladesh (ICAB) on Draft Direct Act, 2011 and Draft VAT Act, 2011 in the city Wednesday. The ICAB president said income tax rates are high in our country and should be rational in fixing the tax rates so that income tax net is increased. She mentioned the ICAB has made a set of recommendations on income tax, corporate tax, VAT, capital market and other issues, for considering in the upcoming national budget for the financial year 2011-2012. About deposit of withholding tax, the ICAB president said that the NBR should allow deposit of income tax deducted at source within next calendar month of the date of deduction or collection. Parveen Mahmood said tax rebate for giving dividend should be eligible for all publicly traded companies. About the value added tax (VAT) on audit fee related to alternative cash assistance (cash incentive) provided by Bangladesh Bank, the ICAB president suggested that a clear guideline should be given by the NBR mentioning that the VAT would be added with the audit fee and ultimately paid by the service receiver (beneficiary incentives). About VAT payment by the manufacturersimporters on behalf of their distributors, necessary ordersamendments should be made so that the manufacturersimporters are allowed to pay VAT considering the distributors selling price, and the distributors are not required to maintain detailed books and records like big manufacturers. This will also result in timely collection of revenue from VAT, she added. Secretary of Internal Resources Division of Ministry of Finance and Chairman of National Board of Revenue (NBR) Dr Nasiruddin Ahmed was present at the seminar as the chief guest, while Member (Income Tax Policy) of NBR Md Aminur Rahman and Member (VAT) Abdul Mannan Patwary were the special guests. Former president of ICAB MJ Abedin conducted the seminar as session chairman. Vice President of ICAB Md. Shahadat Hossain, Partner of Saha Mazumder & Co., a chartered accountants firm, Chitta Ranjan Mazumder and Director (Finance) and Company Secretary of Berger Paints Bangladesh Abdul Khalek presented the keynote papers.