DHAKA, June 1, 2023 (BSS) - The Institute of Chartered Accountants of Bangladesh (ICAB) today hailed the proposed national budget for fiscal year (2023-2024).

"We congratulate the government of Bangladesh led by Prime Minister Sheikh Hasina on the announcement of 16th consecutive budget for the FY 2023-24," said the ICAB in a statement.

Finance Minister AHM Mustafa Kamal today placed a Taka 761,785 crore proposed budget for the next fiscal year, which is equivalent to 15.2 percent of GDP.

The ICAB noted that despite Russia-Ukraine War, high inflation, rising commodity prices, dollar crisis, slowdown in business investment and employment, and other global uncertainties, government has taken a challenge of implementing development budget of Taka 277,582 crore which is very encouraging step to move forward for a developing country like ours.

Additional budget in the infrastructure sector is a commendable step taken by the government, it added.

It mentioned that expanding the tax net is badly needed under the current situation for enhancing the tax GDP ratio.

"Government should take further steps to expand the tax net. We believe that the joint initiative of NBR and ICAB in implementing Document Verification System (DVS) will facilitate to achieve the targeted revenue. We thank Ministry of Finance (specially finance division & internal resources division) for appreciating the implementation of DVS under the joint initiative of the National Board of Revenue (NBR) and the ICAB and for stating that the system is successfully running to verify the accuracy of audited accounts submitted by the taxpayers," it said.

The ICAB said they also thank finance minister for recognizing the fact that the DVS initiative has increased authenticity and transparency in income shown by the taxpayer company.

ICAB welcomed the following recommendations in Income Tax Laws:
"Introduction of environment surcharge which is expected to protect our environment, reduce hectic traffic congestion etc. We appreciate the imposition of various cc or kilowatt-based environmental surcharges on multiple vehicles".

ICAB appreciated the following changes in the VAT and Supplementary Duty Act:
 With a view to 'easing of doing business', "market place" is included in the definition of "online sale of goods ".

To support manufacturing of import substitute products and to reduce tax burden at the local manufacturing stage VAT exemption in excess of 5% at the production stage on "optical fiber cable" is proposed.

Change in formula for partial rebate will remove the ambiguity of rebate calculation.

ICAB believed the government will further reconsider the following matters:

Expected simplification in refund procedure has not been addressed.

ICAB appreciated the following changes in the Customs Act:

Submission of ex-bond bill of entry for clearance of bonded goods for home consumption as well as replacement of definition of bill of entry to accommodate the same.

The initiatives taken by increasing duty for importation of certain goods to protect local industries.