The Institute of Chartered Accountants of Bangladesh (ICAB) Sunday suggested 2.0 per cent cut in the corporate tax in the budget for the next financial year (FY). Investors would be encouraged to invest more funds following such cut and help generate additional employment opportunities. The ICAB also proposed to introduce a new tax slab at a rate of 5.0 per cent for an individual taxpayers and set the maximum slab at 25 per cent for them. Currently, the tax slab for an individual taxpayer starts from 10 per cent and ends at a maximum of 30 per cent.
However, the ICAB members said effective tax rate stands at 39-40 per cent for taxpayers due to surcharge and other cash expenditure disallowances. On the new VAT law, the institute proposed increase in the VAT-free turnover limit to Tk 4.8 million to encourage small businesses.
It also suggested raising the VAT-free ceiling of turnover tax to Tk 18 million and keeping the rate unchanged at 3.0 per cent.
Source: The Financial Express; Monday, 25 March 2019