ICMAB Pre Budget Discussion on National Budget 2021-2022

A Pre-Budget Discussion webinar on “National Budget 2021-2022” organized by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) held on May 20, 2021 evening.

Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister, Government of the People’s Republic of Bangladesh was present as the chief guest at the webinar.

Dr. Atiur Rahman, Bangabandhu Chair Professor, University of Dhaka & Former Governor, Bangladesh Bank, H.E. Mr. Mosharraf Hossain Bhuiyan ndc, Ambassador of Bangladesh, Germany, Mr. Md Farid Uddin, Former Member, Customs and VAT, National Board of Revenue (NBR) and Former Chairman of NBR and Professor Dr. Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD) joined the Webinar as honourable Discussants. Mr. Ranjan Kumar Bhowmic FCMA, Retd. Member (Tax Survey & Inspection), National Board of Revenue (NBR) and Kazi Muhammad Ziauddin FCMA, Additional Commissioner of Customs, National Board of Revenue (NBR) made presentation on the salien features of the National Budget.

Mr. Md. Mamunur Rashid FCMA, Vice-President of ICMAB moderated the session.

ICMAB President Mr. Abu Bakar Siddique FCMA offer inaugural speech in the webinar. Mr. A. K. M. Delwer Hussain FCMA, President, SAFA also share his thoughts on the upcoming budget and Mr. Md. Jasim Uddin Akond FCMA, Vice-Chairman, Seminar and Conference Committee, ICMAB gave concluding speech.

For the upcoming budget the discussants gave emphasis on different issues like digitization of NBR, VAT Act and Tax rule should be reformed, incentives for women entrepreneurs and digital entrepreneurs, more incentives on small and medium enterprises, more incentives on health sectors, health insurance, employment generation, agriculture and education, Govt. should be more prudence in resource allocation, rate should be simplified in VAT Law and Income Tax Law, customs should be modernized etc.

The paper presenters presented a number of proposals to be included in the upcoming National Budget. Among their proposals some salient points are stated here:

• Currently the company submits their annual return along with Financial Statements certified by the Chartered Accountants Firms. It becomes impossible to check Cost of Goods manufactured or Cost of goods sold or Cost of sales statements vertically and horizontally. Therefore in the income Tax Act section 35 (3) (C), “quantitative analysis of cost statement should be signed by the Cost and Management Accountant  (CMA)” words to be added;
• In the existing Law there is no scope of Tax and VAT audit.  By including this subject in the existing Law VAT and Tax can be audited by the professional accountants (Chartered Accountant/Cost and Management Accountant);
• In the Act section 75 there is a provision of auditing With Holding Tax return. In the Act there should be a complete instruction and guideline on how to audit this;
• Investment rebate in DPS (Deposit Pension Scheme) may be increased from Tk. 60.000 to Tk.1,20,000;
• According to the Act section 5, by keeping central VAT registration, SRO may be abolished;
• In Act section 45, at the time of Export, adjustment of VAT and Supplementary Duty has to be mentioned clearly;
• In Act section 101(1)(ga)- For Value Added Tax with minimum 7(seven) years experienced Lawyer or Chartered Accountants or Cost and Management Accountant should be included.

Besides these they have given emphasis on food and agricultural safety, medical and health security, national disaster management, industrialization and capital market development, providing special incentives to garments sector, special incentives for aviation and transportation.