The Financial Express

CMA professionals can help check evasion of tax, VAT

| Updated: June 11, 2021 11:58:04

ICMAB President Abu Bakar Siddique presiding over a post-budget virtual press conference in the city on Sunday ICMAB President Abu Bakar Siddique presiding over a post-budget virtual press conference in the city on Sunday

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) on Sunday urged the government to engage CMA professionals in tax and VAT audit to prevent potential evasion.

The platform also recommended increasing allocation for health and education in the national budget for FY 2021-22, as these sectors suffered the most during the pandemic.

Besides, ICMAB called for keeping the previous tax rate on Mobile Financial Services (MFSs) instead of an increase proposed in the budget, as the move will directly affect general consumers.

The suggestions came at a post-budget virtual press conference, organised by the ICMAB.

ICMAB President Abu Bakar Siddique presided over the programme, while its member Md Shafiqul Alam presented a keynote paper.

Welcoming the proposed cut in the corporate tax, Mr Alam said the cut in corporate tax, for both publicly and non-publicly traded companies, would help recover from the pandemic-induced losses.

However, he suggested that the government lower the proposed corporate tax for one-person company (OPC) to 22.5 per cent from the proposed 25 per cent.

Tax rate for MFSs has been increased for both publicly or non-publicly traded companies which will have adverse effects on the journey towards a cashless society.

"The majority of the users of MFSs are low income people and extra cost in transaction will discourage them to use the platforms," he added.

The finance minister has proposed increasing tax for publicly traded MFS company to 37.5 per cent from existing 32.5 per cent, and for non-listed company from 37.5 per cent to 40 per cent.

As there is no share market enlisted MFS company in the country at this moment, all the companies will have to pay 40 per cent tax, Mr Alam noted.

ICMAB also suggested keeping the previous zero advance income tax (AIT) for import of cash registers as the government proposed imposition of 5 per cent AIT on the product.

ICMAB also welcomed the government's move to make TIN certificate mandatory for buying savings certificates worth over Tk 200,000.

Mr Alam said the decision may create some difficulties for elderly population initially, but in the long run it will help increase tax net.

Speaking at the programme, ICMAB Vice President Md Munirul Islam said there had been reports of huge VAT and tax evasion by many applicable taxpayers.

This can be reduced if the government includes CMA professionals in auditing process, he said.

Welcoming the tax exemption facility for institutions providing skills development trainings, he said that such move would have positive effects on creating skilled workforce for the country.

He also said the proposed budget allocation for health and education was not enough as these two sectors were among the worst hit sectors due to the pandemic.

The association also welcomed the 10 years' tax holiday for 250-bed general hospitals and 200-bed specialised hospitals outside Dhaka, Gazipur, Narayanganj and Chattogram.

ICMAB Vice-President Md Mamunur Rashid, Secretary Kazi Muhammad Ziauddin and Treasurer AKM Kamruzzaman, among others, addressed the event.

[email protected]

Share if you like